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a . Nur Syurga has a saving of RM 1 0 , 0 0 0 and is planning to make her first investment. Kim Loong

a. Nur Syurga has a saving of RM10,000 and is planning to make her first investment. Kim Loong her financial consultant offers her three investment options as below:
Option A: Samsung Bond with par value of RM1,000, pays 4% coupon payment semiannually, matures in 4 years. The bond is selling at RM1,115.
Option B: Air Asia preferred stock paying a dividend of RM3.00 and selling for RM24.25
Option C: UNITAR Capital dividend, with rate grow at 40% this year, 25% on the second year, 30% on the third year and 10% thereafter. The current dividend (Do) is RM0.80 and the stock is selling at RM40.00.
The required rate of return for the above investments is as follows:
required rate of return
Bond 3%
Preferred stock 5%
Common Stock 12%
i. Calculate the value of each investment option.
ii. Which investment should Nur Syurga choose. Explain your answer.

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