You are considering the purchase of shares in WestBank Ltd and sell it after four years. The forecast of the dividends over next four years is as follows: Year Dividend 1 0.75 2 1.10 3 1.30 4 1.45 You predict that you will be able to sell your shares for $12.50 each on the day after receipt of year 4 dividend. After analysis, you decide that the appropriate discount rate is 12%. What is the intrinsic value of your share? 

4. A zero coupon bond has a face value of $300 000 and 5 years to maturity. Interest accrues on the bond quarterly. If the required return is 8% p.a., what is the value of the bond?