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Raw Coffee Company common share paid a dividend of RM 3 . 3 5 per share last year. The company anticipates that its earnings and

Raw Coffee Company common share paid a dividend of RM3.35 per share last year. The company anticipates that its earnings and dividends to grow at a rate of 2.5% per year for the foreseeable future. Based on the information, calculate;
- The required rate of return if the price per common share is RM18.85.
- The new rate of return if the price per common share is RM16.85 by expecting earning and dividend to grow at 4% annually.

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