QUESTION 1 Soping Bhd has seen tremendous opportunities and growth as online service providers. The company expects to have earnings this coming year of RM2.50 per share. Soping Bhd plans to retain all of its earnings for the next year. For the subsequent three years, the firm will retain 50% of its earnings. It will then retain 25% of its earnings from that point onward. Each year, retained earnings will be invested in new projects with an expected return of 20% per year. Any earnings that are not retained will be paid out as dividends. Assume Soping Bhd's shares outstanding remains constant and all earnings growth comes from the investment of retained earnings. Assume Soping Bhd's equity cost of capital is 10%. A. Determine the dividends each year (D2,D2,D3,D4,Ds) for the next 5 years. Hint: growth in earnings = retained earning x return on investment) B. Determine the constant growth rate for Soping Bhd after year 5 C. Determine the price of Soping Bhd in year 0 (Po)