Creative Co stock is currently selling at Rs$\mathrm{.}35$ per share. The stock is expected to pay Rs $3$ as dividend per share at the end of next year. It is reliably estimated that the stock will be available for at Rs$\mathrm{.}38$ at the end of one year.

$10$

CO

$2$

i$.$ Is it advisable to buy at the present price, if the investor's required rate of return is $18\%?(2\mathrm{.}5$ marks$)$

ii$.$ If the investor requires $10\%$ return when the dividend remains constant, what should be the price at the end of the year $(2\mathrm{.}5$ marks$)$