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international finance

Yuan Sheng Holdings is experiencing rapid growth. Both earnings and dividends are forecasted to grow at 14% during the next 2 years, at 11% in the following year, and at a constant rate of 6% during Year 4 and thereafter. Its last dividend paid was RM1.25 per share, and its required rate of return is 12%.

(a) Calculate the stock price of the Yuan Sheng Holdings today.

(b) Calculate the Yuan Sheng Holdings stock price one year and two years from now

(c) Calculate the dividend and capital gains yields for Year 1,2 and 3.


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