Q4.a. Hawkins News Ltd. Has been growing at a rate of 20%, and you expect this growth rate
in earnings and dividends to continue for another three years.
i. If the last dividend paid was $2, what will the next dividend be?
ii. If the discount rate is 15% and the steady growth rate after three years is 4%, what
should the stock price be today?
iii. What is your prediction for the stock price in one year?
iv. Show that the expected return equals the discount rate?