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Question 4 Table 1 shows current market price, current dividends, dividend growth rate and required rates of return on three stocks are given. The dividend

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Question 4 Table 1 shows current market price, current dividends, dividend growth rate and required rates of return on three stocks are given. The dividend growth rates are perpetual. Stock Current Price Current Dividend Dividend growth Required rate of rate return A RM35.00 RM0.50 6.0% 8.0% B RM45.00 RM1.20 5.5% 9.0% C RM40.00 RM0.90 5.0% 8.0% D RM56.00 RM1.40 5.2% 8.0% Table: 1 Compute value of stocks in table 1 based on Gordon growth model and interpret your answer. (20 marks)

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