Question (a) Mr Wong has just bought the ordinary shares of Lee Berhad. The company expects to grow at the following rates for the next 3 years: 20%, 15% and 10%. Last year, the company paid a dividend of $1.50 per share. Assume a required rate of return of 8%. Compute the expected dividends for the next 3 years and also the present value of these dividends. (6 marks) (b) Ramli Berhad has been growing at a rate of 4% for the past 2 years, and the company's CEO expects the company to continue to grow at this rate for the next several years. The company paid a dividend of $1.00 per share last year. If your required rate of return was 12%, what is the maximum price that you would be willing to pay for this company's shares ? (4 marks) (C) Raju Electrical has been selling electrical supplies for the past 20 years. The company's product line has seen very little change in the past 5 years, and the company does not expect to add any new items for the foreseeable future. Last year, the company paid a dividend of $3.00 per share to its ordinary shareholders. The company is not expected to grow its revenues for the next several years. If your required rate of return for such firms is 10%, what is the current value of this company's shares ? (3 marks) (d) You are interested in buying the preference shares of a bank that pays a dividend of $2.00 per share every quarter. If you discount such cash flows at 6% per annum, what is the price of the preference share ? (3 marks) (e) Toong Berhad is a fast-growing company. The company expects to grow at a rate of 20% over the next 2 years and then slow down to a growth rate of 15% for the following 3 years. If the last dividend paid by the company was $2.00 per share, estimate the dividends for the next 5 years. Compute the present value of these dividends if the required rate of return was 10%. (9 marks) [Total : 25 Marks