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Question 1 Discuss the goal of investment and the elements does investment compensate to the investors. (15 marks) Question 2 Explain the THREE type of
Question 1 Discuss the goal of investment and the elements does investment compensate to the investors. (15 marks) Question 2 Explain the THREE type of financial assets and its functions with real life example, (30 marks) Question 3 Critically, evaluate the THREE dividend policies that enhance common share investors' knowledge for investment decision making. (15 marks) Question 4 Table 1 shows current market price, current dividends, dividend growth rate and required rates of return on three stocks are given. The dividend growth rates are perpetual. Stock Current Price Current Dividend Dividend growth Required rate of rate retum A RM35.00 R410 50 6.0% 8.0% B RM45.00 550 9.0% C RM40.00 RM),94) 5.0% 8.0% D RM56.(x) RM1.40 5.2% 8.0% RM1,20 Table: 1 Compute value of stocks in table based on Gordon growth model and interpret your answer. (20 marks) Question 5 MobiCell Bhd is expected to pay a RM0.50 dividend next year. The dividend is expected to grow at a 30% annual rate for years 2 and 3, at 20% annually for years 4 and 5, and at 5% annually for year 6 and thereafter. If the required rate of return is 10%. Calculate intrinsic value Mobicell Berhad. Based on your answer, critically appraise the investor's expectation for said share on investment decision making. (20 marks)
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