(a) Calculate the value of a stock that is expected to pay a constant dividend of RM1.05 per year ifthe required return

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A Calculate The Value Of A Stock That Is Expected To Pay A Constant Dividend Of Rm1 05 Per Year Ifthe Required Return 1 (21.34 KiB) Viewed 49 times

(a) Calculate the value of a stock that is expected to pay a constant dividend of RM1.05 per year ifthe required return is 11%. (2 marks) (b) A common stock just paid a dividend of RM1.20. The dividend is expected to grow at 8% for 5 years, then it will grow at 4% in perpetuity. Calculate the stock value. The discount rate is 12%. (Hint: dividend states in 3 decimals and price states in 2 decimals) (11 marks) () Suppose a companyjust paid a dividend for RM0.30 and expects to increase dividends by 3% per year. The required return is 8%. Calculate the value ofthe stock. (2 marks)