Question: please answer the questions according to the marks appointed per question and sub question. this is a banking and finance question so please answer it

please answer the questions according to the marks appointed per question andplease answer the questions according to the marks appointed per question and sub question. this is a banking and finance question so please answer it accordingly. please see the marks of the questions given and give a detailed answer.

5. (a) Plantfood paid an annual dividend of $3 on its common stock and promises that the dividend will grow by 3% per year. If the stock's market price is $30, what is required rate of return for this stock? (3 marks) (b) Datasoft is currently paying dividends of $0.70 a share. These dividends are expected to grow at a rate of 20% for the next two years and at a constant growth rate of 3.5% thereafter. What would be the current price of Datasoft shares given a required return of 15%? (4 marks) (c) Compare and contrast the risk and return for debt and equity securities from the perspective of both lenders/investors and issuers. (9 marks) (d) Formally derive and discuss the dividend discount model used for the valuation of common stocks. (9 marks)

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