(a)Fitness Worlds, operates a chain of exercise facilities attachable with Great Eastern Insurance company programmed. The company appeals person who suffer from obesity problems and want to improve their health. Currently, the company has 8,000,000 shares outstanding atpar value ofRM2 witha current market price of RM12. Calculate the price of Fitness World's share if the company decided to pay the dividend to shareholders as follows:

i.A 20 percent share dividend.

(4 marks)

ii.A 4-for-1 share split

(5 marks)

(b)Nik Syak DentalBerhad has net income of RM3,000,000 and it has 2,000,000 outstanding common shares. The company's share currently trades at RM45 a share. Nik Syak is considering a plan where it will use available cash to repurchase 30 percent of its shares in the open market. The repurchase is expected to have no effect on either net income or the company's P/E ratio.Calculate the firm's new share price.

(7 marks)

(c)Sinar HarapanBerhad just paid a dividend of RM3.20 per share yesterday. The financial analysthas expected that the firm's dividend willgrow at 21 percent next year, 15 percent next two years and 5 percent indefinitely. The required rate of return on the firm's share is 12 percent. Calculate the value of share Sinar Harapan's.

(9 marks)