(A company has been growing at a fast rate of 35% per year recently and this growth rate is expected to last for another two years. Thereafter, the growth rate is expected to decline to a sustainable rate of 5%)

1. Sekiranya dividen terkini dibayar adalah RM1.20 dan kadar pulangan yang diperlukan adalah 12%, berapakah nilai saham pada hari ini?

(If the most recent dividend paid is RM1.20 and required rate of return is 12%, how much is the stock worth today?)

(6 markah / marks)

2. Berdasarkan pengiraan di (a), adakah anda akan membeli saham tersebut sekiranya stoknya dijual pada harga RM25 pada hari ini? Adakah bahagian itu dinilai terlalu tinggi atau rendah?

(Based on the calculation in (a), would you buy the share if the stock is selling at RM25 today? Is the share overvalued or undervalued?)

(2 markah / marks)

3. Bincangkan secara ringkas had Model Pertumbuhan Tetap dalam penilaian stok.

(Briefly discuss the limitations of Constant Growth Model in the valuation of stocks.)