uestion 1: Determine the expected share price of the following companies using the dividend growth hodel. Assume that a cost of equity of 10% is applicable. a) ABC.Lid has current carnings of $4 per share. It does not reinvest any of its funds and therefore, is not expected to show any earnings growh in the foreseeable future. ( 1 mark) (b) DEF Ltd is a fast-growing company with cument earnings of 90 cents per share. These earnings have been growing at a rate of 6% p.a. but only 30% of earnings are poid out as a dividend. (1,5 marks) (c) GHI Ltd has current earnings of $1 per share and a dividend payout ratio of 50%. Tt is expected that earnings will grow at the rate of 6% p.a. for the next threc yeats and then level off (i. revert to zero growth)