Tough has just paid a dividend of $250$ cents per share. Dividends and earnings have been growing at $35\%$ per year for the past two years. However the financial advisor for Tough has now predicted the following growth rates in dividends and earnings on the Victoria Fall Stock Exchange.

$30\%$ per year for the next five years

$20\%$ per year for the three years after that

$5\%$ per year thereafter.

The required rate of return on the company$$s equity is $21\mathrm{.}22\%$ for the first eight years and it will change to $16\%$ thereafter in perpetuity

Required:

a$)$ Determine the current value of Tough$$s shares $[10]$

b$)$ Comment on the significance of your results using illustrations $[2]$

c$)$ Discuss the feasible existence of the three forms of market efficiency on the Victoria Falls Stock Exchange $[13]$