Question 4 (25%) The following data provides information about four alternatives of stock investments. Provide your explanation whether you will invest in the stocks. Please show workings for each question. ZAC stock has paid a $6.00 annual dividend in 2019 and a $6.50 dividend in 2020. This growth in dividends will continue in the future. The stockholders of ZAC require a 17% return on their investment. Suppose that the company's stocks are traded at $100 per share. Will you buy the stock? (b) DDT Company stock paid a dividend of $4.00 in 2020 and $3.75 in 2021. These dividends reflect the long-term growth rate of the company. If your required rate of return is 16% and the stock is currently trading at $42 per share, should you buy the stock? (e) GM Company has paid a dividend of $3.00 last year, and $3,25 this year. The increase in the dividend is similar to the long-term growth of the company. Considering the risk, Page 3 of 4 (d) your required rate of retum from this stock is 14% and the price of the stock in New York stock exchange is $110 per share. Will you buy the stock? KK Corporation stock has just paid its annual dividend of $2.00. This dividend will become $2.10 next year, in line with the long-term growth record of the company. Considering the risk of the company, the stockholders have a 15% required rate of return. The stocks of KK are currently trading at $18 per share in the stock market. Should you buy KK's stock