A company has the following capital structure: The following information is also relevant to the iust ended financial year

A company has the following capital structure: 7% Preference shares @ GHS 1 Ordinary Shares @ GHS 1 Total GHS 600,000 1 600 ooo 2 200 ooo The following information is also relevant to the just ended financial year: Profit after tax Market price of ordinary shares Ordinary dividend paid per share Depreciation Changes in net working capital Capital expenditure (a) You are required to compute and interpret the following: 542,000 4 0.20 120,000 12,000 10,000 li. Ili. iv. Dividend yield on ordinary shares Earmngs Yield Price-earnings ratio Free cashflow by showing the following: Operating cashflow Investment cashflow Financing cashflow (b) Compute the Market Value added and interpret (c) Assuming that the book values preference and ordinary shares are their fair values, and there is no debt, find the Economic Value added and interpret if the after tax WACC is 12%