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The accountant of COAT Bhd provides you with the following information PPG Corp KP Corp Current ROE 12% 8% Current EPS RM5 RM1.50 Current DPS

The accountant of COAT Bhd provides you with the following information PPG Corp KP Corp Current ROE 12% 8% Current EPS RM5 RM1.50 Current DPS RM1.80 RM0.50 Current Market Price RM22 RM7

You are required to:

a) compute the dividend payout ratio of PPG and KP.(3m) b) compute the intrinsic value of each stock. (assume the r = 14%) (6m) c) choose the stock you will invest and give reasons.(2m)

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