Question 4 a) You have invested in preferred shares issued by Queenly Bhd which is now selling for RM40 per share. The annual dividend is RM4.00 per share. What is the expected rate of return? Should you buy more shares if your expected rate of return from the investment is 11%? (4 marks) b) B2B & Co. paid RM2 dividend per share for its shareholders last year. The dividend is expected to grow at annual rate of 16% for the next two years, and at annual rate of 12% for year three and four. The dividend then is expected to drop at a normal growth of 8%. If the required rate of return is 18%, determine the market price of B2B & Co. stock today. (8 marks)