16:

Assume that we use a dividend growth model to value 'the world stock market'. If the 'world's' dividend yield is 3% per annum and the growth rate is around 3% per annum, what change in the world cost of equity capital from 6% per annum would be necessary to induce a drop-in price of30%?

17:

Using an earnings capitalisation approach, what is the value of a share that has its latest EPS recorded at $1.30 and a P/E ratio of 6?

18:

If the price of a share is $5.60 and the EPS is $0.70, what is the cost of equity capital?