QUESTION FIVE: a) You are offered an investment that will pay you K980 in one year, K1,250 in year 2, K2,650 in year 3 and K3,800 in year 4. You can alternatively earn 15% on treasury Bills investment. Required: i. Calculate the Present Value (PV) of this stream of investment income. 5 Marks ii. What is the difference between primary and secondary markets? 10 Marks b) Find the Stock's Intrinsic value i.e. value of the stock using the Constant Growth Stock Model assuming that ABC plc has just paid a dividend of K10.5 (D.=K10.5), required rate of return (rs=20%), and the investors expectation of dividend is at a growth rate of 15% for the future (g) 5 Marks TOTAL=20 Marks