URGENT PLEASE HELP Nano stock is a common stock and currently is selling at RM23/share. Its growth rate is 7%, the beta is 1.2, risk-free rate is 3% and the expected return on market portfolio is 10%. The dividend has paid recently RM1.20/share.

Blueblue stock is a blue-chip stock and currently is selling at RM123/share. Its growth rate for the first 2 years is 20%, the third year is reducing by 5% and reduced by 5% in year 4 thereafter. The required rate of return is 15% and the expected dividend is RM2/share.

Zizo stock is a preferred stock and currently is selling at RM20 and the dividend is RM2.50 and the required rate of return is 12%.

Currently, the earnings per share (EPS) for Alfonso is RM3.90. Assume at the end of the year the market price for Alfonso fell to RM12/share.

Required:

a. Calculate the value of the above stocks.

(8 marks)

b. If you are given the opportunity, which stock(s) from above you will invest? Your justification from (a) and including the advantageous of common stocks and preferred stocks.

(6 marks)

c. Calculate the current price earnings ratio (PE) and what would be happened when the Alfonso market price fell and else remained unchanged? Justify your answer with calculation.

(6 marks)

d. What is the dividend pay-out ratio (DPR) for Alfonso? If the management reduced the DPR in next year, do you think its given benefits to the firm and shareholders? Explain. (6 marks)