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b) AM Bhd is a manufacturing company specializing in computer hardware. The firm paid an annual dividend of RM0.80 last year. It is expected that
b) AM Bhd is a manufacturing company specializing in computer hardware. The firm paid an annual dividend of RM0.80 last year. It is expected that this dividend will grow at 12% per year thereafter until the 6th year. Subsequently, growth will then settle at 2% per year. Assume that the firm's equity cost of capital is 9%. Required: Calculate the value of an AM share. (15 marks)
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