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Sunshine Icon Berhad currently pays no dividend and reinvests all of its earnings into rapid growth. However, ABC is expected to begin paying dividends in
- Sunshine Icon Berhad currently pays no dividend and reinvests all of its earnings into rapid growth. However, ABC is expected to begin paying dividends in 3 years. The first dividend will be RM 3.00; and will grow at 5% per year; the required rate of return throughout the period is 11%.
- Deduce the current market price per share.
(5 marks)
- List THREE (3) key features of common stock.
(3 marks)
- State and briefly explain TWO (2) main differences between common stock and preferred stock.
(4 marks)
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