XXX has no debt, and an equity cost of capital of 3%. The company is currently valued at $2,000.00 Million. The company has 40 Million shares.

XXX new product A generated earning of $3 per share this past year and are expected to grow at a rate of 5% per year until the end of year 3. After that the growth rate will be 4% due to completion in the markets. The dividends are expected from the 4 the year at 55% of the earnings.

1. Show the expected earnings from all years from 1 to 3
2. Calculate the expected dividend
3. Estimate the value of XXX with the new product
4. Estimate the total value of XXX