A company has in issue 4% irredeemable debt. The debt is tradng at 80% and the next interest payment is due in 1 year. What is the required return of the debt holders? (5%) A company's past dividend history is set out below. Calculate the average percentage annual growth rate in dividend per share. (5.2%) Dividend per share (pence) Year ended 20x7 16.76 206 15.73 20x5 15.05 20x4 14.39 20x3 12.79 20x2 13.00 Use the Gordon growth model to estimate the future growth rate in the annual dividend of the company below, assuming that the company's retention rate and the return achieved on new investment will remain the same as in the past. (About 0.06) Compare it with the past average growth rate in dividends. (0.05) 20x7 Y/e 20x3 20x4 20x5 206 000.F '000 2,832 '000 '000 000.F Profits after tax 2,400 1,652 2,662 1,796 2,834 2,251 3,141 2,231 Retained profit 2,136 Dividend 748 696 866 910 583 Share capital + reserves: b/f 29,000 30,652 32,788 34,584 36,835 c/f 30,652 32,788 34,584 36,835 39,066