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Question 2 (Topic - Stock Valuation) a. What is the current stock price and in 3 years if a company just paid a dividend of

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Question 2 (Topic - Stock Valuation) a. What is the current stock price and in 3 years if a company just paid a dividend of 0.90 per share on its stock and the dividends are expected to grow at a constant rate of 3% per year indefinitely. The investors' required return is 5.5%. b. What is the required rate of return for a stock that currently sells for RM28 per share, the expected dividend will be 1.52 per share and a growth rate of 3% forever? c. A company just paid a dividend of 3.65 on its stocks and the growth rate is expected to be 7% per year forever. Investors required rate of return is 15% for the first 3 years, 13% for the next 3 years and 11% thereafter. What is the current share price? d. What is the current share price? A company just paid a dividend of 2.65 and is expected to grow at a rate of 25% for the next 3 years, with a growing rate falling off to a constant 7% thereafter. The required return is 10%

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