Sock and Sack is a little known producer of trekking items. The earnings and dividend growth prospects of the company are disputed by analysts. Alan is forecasting $5\%$ growth in dividends definitely. However, his partner Bobby is predicting a $20\%$ growth in dividends but only for the next $3$ years after which the growth rate is expected to decline to $4\%$ for the indefinite future. The company$$s dividend per share are currently RM$3\mathrm{.}00.$

The Malaysia Treasury bills is $3\mathrm{.}5\%,$ beta for the company is $1\mathrm{.}2$ and the expected rate of return on the market is $12\%.$

Required:

a$.$ What is the value of the company$$s stock according to Alan? $(4$ marks$)$

b$.$ What is the value of the company$$s stock according to Bobby?

$(5$ marks$)$

c$.$ Sock and Sack invested in Maxis stock and current price is RM$4\mathrm{.}10.$ The dividend per share is RM$0\mathrm{.}14$ and the growth rate of the dividend is $11\mathrm{.}8\%.$ What is the required rate of return for the Maxis stock?

$(3$ marks$)$

d$.$ State FOUR $(4)$ differences between common stock and preferred stock.

$(8$ marks$)$