The company's profit was 300 million last year. At the beginning of each year, the company distributes 50% of its profit in dividends, and yesterday 150 million of dividends were paid out. The price of each share after the dividend payment is 55, but there are 30 million shares outstanding. The risk-free interest rate is 4% and the market spread is 6%. The company's beta value is 1.4.

a) If no interest is expected in dividend payments, what should be the price of each share today?

b) What is the expected steady growth in dividends, e.g. current market rate?

c) Let us now assume that new information means that investors' expectations of dividend growth will be 6% annually for the next 5 years and 4% annually thereafter. What would be the value of the bond?

d) What is the expected value of each bond after eight years, given the criteria set out in point c)?