Question
1 Assume that A limited paid a dividend of20.7 cents per share just recently. The shares currently sell for $10.1. You also estimate that the
1 Assume that A limited paid a dividend of20.7 cents per share just recently. The shares currently sell for $10.1. You also estimate that the dividend will grow steadily at 2.5 % per year into the indefinite future. What is the cost of capital, kefor A limited? Answer as a percentage accurate to two decimal places (11.32% should be entered as 11.32). Do not enter the % sign.
2
A company has annual net operatingcash flow(X) of 1.2 million dollarsin perpetuity and the market value of its capital (V) is10.5 million dollars. What is the company's cost of capital k o? Provide your answer as a percentage to two decimal places. Do not enter the % sign.
3
XYZ Corporation has just paid a dividend of53 cents per share.The current market price of the share is $16 and shareholders require a return of 10 % pa.What is the annual growth rate (g) of the dividends?Answer as a percentage accurate to two decimal places. Do not enter the % sign.
4
What is the cost of capital for bank overdraft (kbo). The overdraft rate is7.2 % pa compounded 12 times a year? Answer as a percentage to two decimal places (2.12% should be entered as 2.14). Do not enter the % sign.
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