Question 2 (Total: 4 marks) A. DZs Ltd has a current dividend growth rate of 10% per annum. It is expected that this rate can only be maintained for the next 2 years, from which time it is expected to be 6% per annum and remain at that level indefinitely. The investors' required rate of return is 25%. The latest dividend per share was $0.60 and was paid yesterday. What is the value of DZs's shares? (2 marks) B. Titan Ltd is considering listing on the local stock exchange. Their industry classification will be "Transport and Storage". The average price earnings ratio for this sector is 16. You are reviewing the company and plan to calculate an expected price earnings ratio using expected price and expected earnings. The company's expected earnings per share is $3.10 and they expect to maintain a dividend payout ratio of 40%. Assume the expected price for Titan is $12.50. What is the expected P/E ratio? And what conclusion can you draw from it? (2 marks)