ABC Bhd is considering expanding its investment portfolio and has identified Platinum

Bhd$\text{'}$s shares as a potential addition. Platinum Bhd currently has $75$ million outstanding

common stock shares. The company's yearly sales amount to RM$450$ million, with

earnings after tax representing $15\%$ of the annual sales. Notably, Platinum Bhd

recently made a positive announcement about securing a project in Abu Dhabi, leading

to increased investor optimism, and subsequently raising the price$-$earnings ratio from

$10$ times to $15$ times. Platinum Bhd$\text{'}$s stock is currently trading at RM$11\mathrm{.}20$ per share.

Required:

i$.$ Evaluate the board's decision to invest in Platinum Stock. $($Support your answer

with relevant calculations$).$

$(6$ marks$)$

ii$.$ Apart from income$-$based valuation, the dividend valuation model is often used

in stock valuation. The Creative director of ABC Bhd wants to know about the

difference between the zero$-$growth model and the constant$-$growth model.

Explain the difference between the two models to the director.

$(6$ marks$)$