The common stock of Digital Inc. has ROE of 15% that pays a constant annual dividend per share of RM1 and is expected to continue to do so. The stock's shares outstanding is RM85 million and its total equity amounted to RM700 million.

a)Calculate the earnings per share (EPS) of the firm. (3 marks)

b)Calculate the dividend payout ratio and the expected growth rate for Digital Inc. (4 marks)

c)An investor plans to purchase the Digital Incorporation's stock. Based on the Dividend Valuation Model (DVM), calculate the maximum price that the investor should be willing to pay, given the required rate of return is 10% for this stock. (3 marks)

[Total: 10 Marks]