Question
1)A company has annual net operatingcash flow(X) of 1.9 million dollarsin perpetuity and the market value of its capital (V) is10.4 million dollars. What is
1)A company has annual net operatingcash flow(X) of 1.9 million dollarsin perpetuity and the market value of its capital (V) is10.4 million dollars. What is the company's cost of capital ko? Provide your answer as a percentage to two decimal places.Do not enter the % sign.
2)The next dividend for ABC Limited will be $0.4 per share (D1). Investors require a 12 % return on companies such as ABC Limited. ABC's dividend increases by 4 % every year. Based on the dividend growth model what is the value of ABC Limited shares today? Price to the nearest cent.Do not enter the $ sign.
3)What is the cost of capital for bank overdraft (kbo). The overdraft rate is5.9 % 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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