1. OPQ Bhd paid a dividend of RM2 per share last year. The growth rate in dividend is expected to be 4% for the first year, 5% for the second year, and then 6% for the third year. The growth rate is expected to be constant at 7% per year thereafter. The required rate of return is 10%

i) Calculate the maximum share price you should be willing to pay for the stock?

ii) If your remisier recommends that you buy this share at the current market price of RM65, should you agree?