You would like to use CAPM and dividend discount model (DDM) to calculate the current theoretical stock price of GREAT Ltd. Given the following information: (i) the risk-free interest rate is 6% p.a. (ii) the expected return of market, E[RM]=11% p.a. (iii) the market beta of stock GREAT Ltd. =0.8 The dividend payment from GREAT Ltd. has the following pattern: [1] the company will not pay any dividend to stockholders in next five years; [2] at the end of the sixth year, the company will pay cash dividend $1 per share; [3] from the end of the sixth year, the company will continue to pay cash dividends at a constant growth rate 5% p.a. Calculate the theoretical stock price for GREAT Ltd. now. (10%) An investor just purchased 10,000 shares of LITTLE Ltd. common stock on margin at the initial purchase price of $190 per share. Given that (i) the initial margin is 50%; and (ii) the maintenance margin is 30%, (iii) the stock pays no dividend; (vi) you can ignore any interest on margin. What stock price level would induce you to get a margin call? (10%)