You have collected the following information regarding Impi Industrial Corporation's historical earnings per share:

2012 - R12.36

2013 - R13.60

2014 - R15.82

2015 - R17.80

2016 - R20.90

2017 - R21.78

Based on your analysis of Impi's fundamentals you estimate that the firm's earnings will continue to grow at its average historical growth rate for the next year but that in the following year, as a result of the launch of a new product the firm is currently developing, earnings will grow at a rate of 20% per year for two years. After this, you project that the earnings growth rate will decrease by 5% per year for the next two years, to its long-term sustainable rate. You project that the firm will maintain a 50% dividend pay-out ratio and that the appropriate market capitalisation rate for Impi Industrial Corporation is 15%. What action would you take if the firm's shares are currently trading at R620 per share?

Required :

1. (g) - (arithmetic) (g) =
2. D(1) =
3. D(5) =
4. P(T) =
5. P(o) =