Preview File Edit View Go Tools Window Help 20% O Tue 12:25 PM Q :E B.F IND ASS.pdf (page 3 of 3) Q Search B.F IND ASS.pdf IMG 2 IMG 1 2) Grandyna Berhad expect. - 2005 QUESTION 4 1) Riyad interested to invest in Selom Corporation. The company just paid a dividend of RM3.50 per share last year and maintain a constant growth rate of 6 percent. Riyad required a rate of return for his investment of 12 percent. (a) How much does the stock's worth today? (5 marks) (b) How much does the price of that worth stock five years from now? (5 marks) (c) If Riyad sell his stock at year does he acquired capital gain or loss from this investment? Justify your answer with workings. (4 marks) that their dividend will grow over four years' time. They are expecting that the dividend will grow at 10 percent for year 1, 8 percent for year 2, 11 percent for year 3 and 9 percent for year 4. Subsequently, the company initiates to maintain a constant 8.5 percent of dividend growth rate, forever. Grandyna Berhad had just paid a dividend of RM2 per share last year. If the required rate of return on this share is 13 percent, what is the current price of the share? (11 marks) bf69 33...fi 2 3 Erin S. Yale University OCT 13