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QUESTION 2 (CLO 2) a) Misteri Berhad has recently discovered a new potential product. The company's dividend is expected to increase rapidly and then
QUESTION 2 (CLO 2) a) Misteri Berhad has recently discovered a new potential product. The company's dividend is expected to increase rapidly and then grow at a stable rate. Next year, the dividend is still expected to be RM1 per share, but dividends will increase annually by 7%, then 10%, then 12%, and then steadily by 5%. Calculate the value of the stock if the required rate of return is 10%. (Total: 14 marks)
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