QUESTION $2(16$ MARKS$)$

You are considering three investments in Anmepch Industries as follows:

Investment $1$: Bond

Anmepch Industries bond has a $8\%$ coupon on its par value in interest and matures in $10$ years. For bond of this class, you believe that a $10\%$ rate of return should be required. The price of the bond is RM$900.$

Investment $2$: Preferred stock

Anmepch Industries preferred stock pays a dividend of RM$5\mathrm{.}00.$ For this preferred stock, your required rate of return is $13\%.$ The preferred stock is sell at RM$50.$

Investment $3$: Common stock

Anmepch industries common stock recently paid a RM$6$ dividend, the company's return on equity is $18\%$ and the company keeps only $52\%$ of the profits for reinvestment. The reasonable required of return is $16\%$ and the stock is sell at RM$60.$

a$.$ Based on your required rate of return, calculate the value of each security $($bond$,$ preferred stock and common stock$).$

$(6$ marks$)$