Question: b) Rainbow Bhd.'s dividend is expected to increase stably. Next year, the dividend is expected to be RM1 per share and increase by 5% each

b) Rainbow Bhd.'s dividend is expected to increase stably. Next year,

b) Rainbow Bhd.'s dividend is expected to increase stably. Next year, the dividend is expected to be RM1 per share and increase by 5% each year. Calculate the stock's current value if the required rate of return is 10%. (Total: 6 marks)

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