Primax Berhad had just paid divided of RM$0\mathrm{.}44.$ Through a new technique of producing their products, Primax expects to obtain high growth achievement in the short term that is at $25$ percent per year for the first three years $($g$1-$g$3=25$ percent$).$ After that, the growth is expected to return to normal for a long period, that is $10$ percent perpetually. Compute the price of Primax's shares today if investors required $15$ percent rate of return.

Answer rating: 100% (QA)

Heres the breakdown Dividend D0 RM044 Growth rate for first 3 years g1g3 25 025 Normal growth rate g ... View the full answer