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B) The common stock of AMT paid RM1.32 in dividends last year. Dividends are expected to grow at an 8 percent annual rate for an

B) The common stock of AMT paid RM1.32 in dividends last year. Dividends are expected to grow at an 8 percent annual rate for an indefinite number of years.

i. If AMTs current market price is RM23.50, what is the stocks expected rate of return?

ii. If your required rate of return is 10.5 percent, what is the value of the stock for you?

iii. Should you make the investment, and why?

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