FINANCIAL SECURITIES VALUATION 20 MARKS 1. Zubairy interested in Vidal Sasson. common share and preferred share outstanding which both share paid dividend of RM5 last year. The preferred share sells for RM 60 per share while common share sells for RM70 and has projected constant growth rate of 7 percent Calculate the value of both shares if the required rate of return is 12 percent. (5 marks) 2. YTL Berhad is experiencing a period of variable growth model. YTL Berhad paid a dividend of RM2.20 last year. Dividends per share are expected to grow at a rate of 15 percent for first year, 18 percent during the next two years and 6 percent thereafter. If the required rate of return on the share is 10 percent, calculate the current value of YTL Berhad's share. (10 marks) 3. The RM10 million of callable bonds issued by Venom Berhad. The bond is selling for RM898.99 with a par value of RM1.000, a coupon interest rate of 8 percent and a maturity of 10 years. Compute the value of bond if the required rate of return is 6 percent for the bond