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i need help with (b) (a) Profin Bank has been in business only a few years. Its board of directors decided to start paying a

i need help with (b) image text in transcribed
(a) Profin Bank has been in business only a few years. Its board of directors decided to start paying a dividend to help boost the attractiveness of its stock. The company currently paid a dividend of 50 sen per share. After that dividends will increase by 4 percent per year. The company has a beta of 1.6. The rate of return on Kuala Lumpur Composite Index is 8%, Emas Index is 10% and the T-bill rate is 3%. Should you purchase shares in this bank at the current market price of RM6.98 per share? (Please show your workings). I (7 marks) Referring to question (a) above, what will be the new intrinsic value if the dividends growth stabilized at 2% a year after 4 years? Based on your results, will you purchase the bank's shares? (Please show your workings). (9 marks) (b)

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