The ordinary shares of ZZZ are currently trading at 80p. The last dividend per share was 15p

Question:

The ordinary shares of ZZZ are currently trading at 80p. The last per share was 15p and its dividenads have been constant for ten years. The company plans to finance a new investment project out of retained earnings and so for the next two years the per share will fall to 10p. Benefits from the investment project will be gained from year 3 onwards and so ZZZ will pay a of 18p per share in that and subsequent years. Assuming that shareholders have all the above information, what would be a fair price for the shares of ZZZ?
Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...