2 a. Mr. Murad, a retired army officer, plans to invest some money in ordinary stocks. If he expects a return of 14 percent from his investment. What will be the value of the stock based on the following conditions? i. Current dividend RM0.95, constant growth rate of dividend 6 percent. (4 marks) ii. Current dividend RM1.12, constant growth rate of dividend 7 percent. (4 marks) iii. Current dividend RM1.00, constant growth rate of dividend 5 percent, and he revised his required rate of return to 9 percent. (4 marks) iv. If he requires a return of 12 percent and the current market value of the stock is RM36.00. Will he think this stock is attractive? b. (4 marks) Tongkah Bhd is a high growth company. Its current dividend of RM2.00 per stock and the dividend is expected to grow at a rapid rate of 30 percent a year for the next 3 years. Thereafter, dividend growth will slow down to 7 percent a year for the indefinite future. If investors want a required rate of return of 20 percent, calculate the stock intrinsic value? (9 marks)