Question 3: 4 Marks Hermes has been very successful in the past years. Last year, it paid a dividend of $10. It expects zero growth in the next year. In years 2 and 3, 2% growth is expected. The company is not going to pay any dividends in year 4. In year 5, it is going to pay $5 dividend. In year 6 and thereafter, growth should be a constant 4% per year. What is the maximum price per share for an investor if the opportunity cost is 7%? Will you buy the share if the market price is $150