QUESTION $1$:

Brandon Michael Chu of Henry Law & Yang Yi Capital Limited believes that earnings and

dividends at Alua Amanova & Shuwen Wang Technologies $($AST$)$ will continue to grow at $12\%$

per year for $20$ years. After that growth will level off to $5\%$ for the indefinite future. The

dividend just paid was $$4$ per share and the required rate of return on this stock is $12\%.$

a$.$ What is the value of AST stock?

b$.$ Suppose AST is currently trading at $$120$ per share. Expected D$1=$ $$4\mathrm{.}80.$ After that

dividends will grow at $12\%$ per year for $?$ number of years, then after dividends will

grow at $5\%$ per year forever. The required rate of return is $12\%.$ How many years of

growth at $12\%$ is the market predicting?