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Could you help me please IKKG Company has just paid an annual dividend of 1.99....

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Finance

Could you help me please

IKKG Company has just paid an annual dividend of 1.99. Analysts expect the company's profits to increase by 6% per year for the next four years. Beyond that, IKKG Company's profits are expected to grow at the industry average rate of 4.6% per year.

a) If IKKG Company's cost of equity is 8.2% per annum and its dividend payout ratio remains constant, what price should IKKG Company's shares sell for under the dividend discount model?

b) If, while maintaining a constant total payout ratio, the CFO finally decided to pay out 50% of the profits as a dividend and use the remaining 50% to buy back shares, what would be the share price of IKKG Company?

c) What is the most relevant/direct discount rate to use in this case to determine the price of this company's shares?

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