a) Jewel Cases Limited a member of the Jamaica Stock Exchange has been highly recommended by a stock broker to three clients, Mary National, Mark Country and Paul Green.The respective required rates of return of the three clients are 12%, 12.5% and 13%.The Jewel Cases stock sells for $150.50 and pays a quarterly dividend of $1.50 with a projected growth dividend rate of 8%.Given the information calculate the valuation of the stock for the three clients and indicate the percentage over/under value for each client.(9 marks)

b) Grace Crowne will retire today 31stDecember on her 60thbirthday.Her family has a rare medical disease which causes them to die on their 75thbirthday.She needs to choose between three retirement plans:

i)She will receive $70,000 per annum for the rest of her life

ii)She will receive 80% of the value in i) above in the first year with a growth rate of 4% per annum

iii)She will receive a lump sum payment of $500,000.

Grace lives in Utopia, where the economy is very stable the interest rate is 9% and is expected to remain unchanged for the remainder of her life.Her estimated annual expenses, which she anticipates will not change is as follows:

- Property including utilities35,000

- Medical15,000

- Food10,000

- Miscellaneous.5,000

Based on her medical condition she received a tax exemption.Given her expenses and the information above which plan would you recommend to Grace?Show all your workings and provide justification for your answer.(8 marks)

c) Andrew Reid has asked you to provide three possible screens which he can use in the selection of a stock which he would like to purchase from the international market.