SAM Ltd. has just paid a dividend of 2 per share and it is expected to grow @ 6% p.a. After paying dividend, the Board declared to take up a project by retaining the next three annual dividends. It is expected that this project is of same risk as the existing projects. The results of this project will start coming from the 4th year onward from now. The dividends will then be 2.50 per share and will grow @ 7% p.a. An investor has 1,000 shares in SAM Ltd. and wants a receipt of at least 2,000 p.a. from this investment. Show that the market value of the share is affected by the decision of the Board. Also show as to how the investor can maintain his target receipt from the investment for first 3 years and improved income thereafter, given that the cost of capital of the firm is 8%.