b. Clamentine Berhad had undergone an aggressive financial strategy, the growth rate of dividend is expected...

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b. Clamentine Berhad had undergone an aggressive financial strategy, the growth rate of dividend is expected to grow rapidly over the next three years at 15%. In the fourth year, the dividend growth rate will return to its historical growth rate and will continue to grow at that level for the foreseeable future. i. Calculate the new value of Clamentine Berhad's stock for an investor with 15% required rate of return. (5 marks) ii. Based on your answer in (i), analyse the effect on the investor's rate of return if he purchased the stock at RM30 per share. (3 marks) b. Clamentine Berhad had undergone an aggressive financial strategy, the growth rate of dividend is expected to grow rapidly over the next three years at 15%. In the fourth year, the dividend growth rate will return to its historical growth rate and will continue to grow at that level for the foreseeable future. i. Calculate the new value of Clamentine Berhad's stock for an investor with 15% required rate of return. (5 marks) ii. Based on your answer in (i), analyse the effect on the investor's rate of return if he purchased the stock at RM30 per share. (3 marks)