Consider a share which is currently priced at RM2.06 with gross dividend per share of 4 cent. The dividend which are paid annually, are expected to rise by 3% per annum in future years and the inflation rate is expected to be 2.5% per annum. Calculate, (a) the historic gross dividend yield, [1 marks] (b) the real effective annual rate of return, [7 marks] (c) and the nominal effective annual rate of return. [2 marks]