Question: lily gathers the following information about a company : number of shares outstanding : 1 million shares net income: rm 3 million dividend paid last

lily gathers the following information about a company :

number of shares outstanding : 1 million shares

net income: rm 3 million

dividend paid last year : rm 2 million

company's equity book value : rm 15 million

beta : 1.3

risk free rate: 5 %

expected return of KLCI : 12 %

10-years average P/B ratio: 2.1 times

a) determine the company's share intrinsic value using constant growth dividend discount model(DDM)

B) Determine the company's share intrinsic value using comparable price to book (P/B) mthods.

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