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QUESTION 4 (a) Provide FIVE (5) companies that listed at Bursa Malaysia. (5 marks) (b) Synergy Berhad wants to estimate the value of its outstanding
QUESTION 4 (a) Provide FIVE (5) companies that listed at Bursa Malaysia. (5 marks) (b) Synergy Berhad wants to estimate the value of its outstanding preferred shares. The preferred shares have an RM100 par value and pay an annual dividend of 6 percent per share. i. Calculate the market value of the outstanding preferred share given that the required rate of return is 8.7 percent. (5 marks) ii. Calculate the market value of the outstanding preferred share given that the required rate of return is 11.5 percent. (5 marks) 11i. Based your answer on i and ii, discuss the relationship between price and required rate of return. (2 marks) (c) South Side Corporation is expected to pay the following dividends over the next four years; $8, $6, $3 and $2. Afterward, the company pledges to maintain a constant 4 percent growth rate in dividends, forever. If the required rate of return is 13 percent, calculate the current common share price. (8 marks)
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