Successful Albert Ltds last dividend was $3.55. The company expects to grow at a constant rate of 5%. Your required rate of return on such shares is 6.5%.

a. Find the current market value of this share. (2 marks)

b. What is the expected dividends in year 5? (1 marks)

c. What is the price of the share 8 years from now? (2.5 marks)

d. If the company expect no growth in the near future, what is the maximum price you would be willing to pay? (1.5 marks)