Question 3 a. MK Berhad's common stock is expected to pay an annual dividend of RM2.00 per share at the end of the year and this dividend is expected to remain constant for an indefinite period. Azlin Berhad is expected to pay a RM1.00 per share dividend at the end of the year (D=RM1.00). The dividend is expected to grow at a constant rate of 7% a year. Nurul Berhads dividend will grow at a rate of 40% this year, 25% next year and 10% thereafter. The current dividend (Do) is RM0.80 From the above information you are required to: i. determine the price of today for each stock if the required rate of return is 15%. (9 Marks) ii. based on your answer in part (a) recommend which stock is the best for your client to invest in. Explain your recommendation. (1.5 Marks) b. Nana Tanjung Corporation has issued bonds that have a 9% coupon rate, payable semiannually. The bonds mature in 8 years, have a face value of RM 1,000 and a yield to maturity of 8%. Compute the price of the bonds? (2 Marks) (Total: 12.5 Marks)