This problem contains $3$ questions at once with each question worth $4$ points, and hence it is worth $12$points total. $($Please do not round interim calculations for accurate results.$)$

Following table is the data of past dividend payments.

dividend $($in millions$)$

$2012$ $$1\mathrm{.}00$

$2013$ $$1\mathrm{.}50$

$2014$ $$2\mathrm{.}00$

$2015$ $$2\mathrm{.}35$

$2016$ $$3\mathrm{.}15$

$2017$ $$4\mathrm{.}00$

$2018$ $$4\mathrm{.}65$

$2019$ $$5\mathrm{.}25$

$2020$ $$5\mathrm{.}96$

Using the past dividend data, you will forecast the future growth rate.

Note also the following:

The most recent dividend paid by New Technologies was an annual dividend of $$5\mathrm{.}96$ million in total and

there are $10$ million shares outstanding $.$

Assume

T$-$bill rate is $2\%,$

S&P$500$ market return is $12\%,$ and

beta of New Technologies is $0\mathrm{.}95.$

QUESTION #$1.$

The appropriate discount rate $($required rate of return$)$ should be

Question Blank $1$ of $3$

choose your answer... $6\mathrm{.}52,10\mathrm{.}059\mathrm{.}2411\mathrm{.}5$

QUESTION #$2.$

Using the data given, You find that the geometric average of historical dividend growth rate is approximately $25\%.$

You forecast that dividends for the next $3$ years will be increased at this rate of $25\%$ but after this period you believe the dividends' growth rate will fall to a constant growth rate of $4\%$ per year starting the $4$th year.

You think a sudden decline of growth rate is not realistic. Hence, you will apply the H$-$model to the above question.

If H$-$model is applied, the growth rate should decline each year by

Question Blank $2$ of $3$

choose your answer... $10,5,9,7$

to reach the constant growth rate of $4\%$ at year $4.$

With H$-$model applied, the stock value per share today is approximately

Question Blank $3$ of $3$

choose your answer... $11\mathrm{.}84,17\mathrm{.}93,10\mathrm{.}19,7\mathrm{.}55$

per share.