Vitz PLC held its Annual General Meeting for the year 2020 recently, and issued its annual report for the financial year ended on 31st March 2020. Nimantha is a fund manager at a leading equity fund in the Colombo Stock Exchange. He has recently expressed his interest on Vitz PLCs common stock and is considering whether is it value adding to include it in his equity portfolio. From the annual report, Nimantha has extracted the earnings for the year 2020 as Rs.40 Million and the companys policy is to retain 80% of the earnings for its future use. It is further learnt that the company projects to increase next year earnings by Rs.5,760,000. Vitz PLC recently paid a dividend of Rs.2.93 per share and ending price of the stock in the year 2020 is Rs.83. Requirements; i. Assume Nimantha requires a return of 18% p.a. by investing at Vitz PLC. If youre a financial analyst working under Nimantha, briefly explain how would you advise him on his investment decision, with relevant computations. ii. How much return will Nimantha gain as the dividend yield and as the capital gain yield on this investment?