Silicon Wafer Company currently pays a dividend of GH1 per share and has a share price of GH20.

a. If this dividend was expected to grow at a 12 percent rate forever, what is the firms expected, or required, return on equity using a dividend discount model approach?

b. Instead of the situation in Part (a), suppose that the dividend was expected to grow at a 20 percent rate for five years and at 10 percent per year thereafter. Now what is the firms expected, or required, return on equity?