Q3. Cloud Innovation currently (t-0) pays a dividend of $2 per share. The forecasted growth rate for the next year (t-1) is 25%, but is expected to decline annually by 6% for the two years (t=2 and t=3) that follow until year 4, when the growth rate will stabilise and become sustainable forever. The company has adopted a consistent dividend policy by paying out 60% of earnings as dividend. Assume that the company's return on equity (ROE) and the required return on its shares are 15% and 8%, respectively. a) Calculate the sustainable growth rate of Cloud from year 4. [3 marks] b) What is the market value of on Cloud's share? [12 marks] [Total 15 marks]