(b) Happy Company has asked its finance manager to measure the current market value of company's...

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(b) Happy Company has asked its finance manager to measure the current market value of company's ordinary share using variable growth model method. The company just paid a dividend of RM0.50 per share. Management expect the profit and dividend are expected to grow at a yearly rate of 8% for coming first year, 10% per annum for the following three years and 5% per annum thereafter. The minimum required rate of return of the company is 8% per annum. Required; Compute the current market price per unit of company's ordinary share. Show all your workings. Year Present value factor / discounting rate, 8% p.a. 1.0000 1 0.9259 0.8573 3 0.7938 4 0.7350 (15 marks) [20 Markl (b) Happy Company has asked its finance manager to measure the current market value of company's ordinary share using variable growth model method. The company just paid a dividend of RM0.50 per share. Management expect the profit and dividend are expected to grow at a yearly rate of 8% for coming first year, 10% per annum for the following three years and 5% per annum thereafter. The minimum required rate of return of the company is 8% per annum. Required; Compute the current market price per unit of company's ordinary share. Show all your workings. Year Present value factor / discounting rate, 8% p.a. 1.0000 1 0.9259 0.8573 3 0.7938 4 0.7350 (15 marks) [20 Markl

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D E G 2 years particulars 1 2 3 4 4 dividend 050 10 growth rate expe... View the full answer