Question: 1 0 . A stock is priced at RM 5 0 . 0 0 per share, and the company expects to pay a dividend of

10. A stock is priced at RM50.00 per share, and the company expects to pay a dividend of RM3.00 next year. The dividend growth rate is 4%. Calculate the expected dividend yield for the stock. (4 marks)
11. XYZ Corporation is expected to pay the following dividends: RM2.00 in Year 1, RM2.50 in Year 2, and RM3.00 in Year 3. After Year 3, the companys dividends are expected to grow at a constant rate of 5% per year indefinitely. If the required rate of return is 10%, calculate the current price of the stock. (10 marks)

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