QUESTION FOUR (13 marks) a. The most recent annual dividend paid by XY ltd is sh. 6 per share. An annual increase of 10% p.a is expected over the first 2 years. Then a growth of 8% is expected in the next two years. Thereafter, the dividend growth rate would slow down to 5% p.a indefinitely. Required: Assuming 15% p.a. required rate of return, compute the current value of a share of XY ltd. 5 marks b. The projected returns of a stock quoted at Nairobi Securities Exchange under varying economic conditions are shown below