Question 5 Secure Insurance is a mature company and is growing at a constant growth rate of 4%. The company just paid a dividend of $1.95. If the required rate of return on such shares is 10.5%, calculate: (a) the expected dividend in year 3. [2 marks] (b) the current value of the share. [3 marks] (c) whether you would recommend a current shareholder sell or buy more shares if the market price is $25. Explain your answer. [2 marks] 1 A B