Suppose that new information from the company leads to revising the estimates regarding the companys prospect in such a way that the companys dividend will be $0.20 per share for the first year from now and $0.30 per share for the second and third year from now. After three years, the companys dividend will grow at a constant rate of 5% per annum permanently. (e) What is the price at which this companys stock should sell based on the revised estimates according to two-stage DDM? (3 marks)

Click and type your answer. [2:10 PM] Question 3 Bond Valuation and Yields (4 marks) (Parts in Question 3 are not related to each other.)