Question 2 Table 2 shows historical dividend pay-out ratios and net profits for Malayan Banking Berhad and Public Bank Berhad over the period of 2015-2020. Table 2: Financial Data Maybank Dividend pay-out (%) Net income (RM million) 68359 2015 76,33 2016 78.50 6743.0 2017 78.86 7520.5 8113.3 81981 64812 5062.2 2018 77.63 2019 87.76 2020 91.58 Public Bank 2015 42.72 2016 43.01 2017 43.06 2018 45.71 2019 49.31 2000 10.36 5206.9 $470.0 5590.6 55116 4871.7 a. Based on Table 2, calculate the dividends for the period 2015-2020 for Maybank and Public Bank. b. Maybank has just paid a dividend of RM0.52 per share in 2020. Dividends are expected to grow at 3% per year for the next two years, and increase to 5% annual rate for an indefinite number of years. Given the required return of Maybank is 10%, calculate the present value of a Maybank's share. c. Given current market price of Maybank is RM8.20 per share, should you invest in Maybank's stocks? Why? d. Public bank has always been paying stable dividends in the past. However, due to Covid-19 pandemic that happened in 2020, bad debts rose and profit margin declined substantially, causing Public bank to cut its dividends by 25% last year. Based on their forecast, dividend will remain the same in 2021 and rise to 6% afterwards until infinite periods. Given the number of shares outstanding for Public bank in 2020 is 19410 million and required return of 12%, how much is the value of the stock? e. Should you purchase public bank stocks if the current share price is RM4.20 per share? Why