Dragon Limited Micro-Clip Production: Investment Analysis and Dividend Valuation

(i) The expected dividend in year 1 is $4.00 because this is the ordinary dividend that has already been paid by the company.

To determine the expected dividends from year 2 to year 4, we need to use the dividend growth rate of 15% per annum. This means that the expected dividend in year 2 is $4.00*(1+15%) = $4.60. Similarly, the expected dividend in year 3 is $4.60*(1+15%) = $5.29, and the expected dividend in year 4 is $5.29*(1+15%) = $6.09.