You are performing a valuation of the stock of Company ABC. You have collected information as follows: Dividend paid in 2011 was RM2 per share. Dividend paid last year in 2020 was RM3 per share. The dividend is expected to grow at its historical growth rate. The stocks security characteristic line (SCL) has an estimated slope of 1.1. The current risk-free rate of return and market risk premium are 2% and 5% respectively. Required:

(i) Calculate the required rate of return for the stock of Company ABC. (3 marks)

(ii) Calculate the intrinsic value of the stock of Company ABC using the dividend discounted model (DDM). (5 marks)