(a) Pepsi Africa maintains a debt-equity ratio of 0.40 and follows a residual dividend policy. The company has after-tax earnings of $2,000 for the year and needs $1,600 for new investments. What is the total amount Pepsi Africa will pay out in dividends this year and what is your view on your calculation? [6 Marks] (b) Zambia choice Investments has recently purchased a stock that is expected to earn 15% in a booming economy, 10% in a normal economy and lose 7% in a recessionary economy. There is a 17% probability of a boom, a 72% chance of a normal economy, and an 11% chance of a recession. What is your expected rate of return on this stock? [8 Marks] (c) Shares in SAMSUNG Africa are currently selling for $5.5625. At the beginning of the year you bought them for $5.25 and during the year a dividend of 23.25 cents per share was paid. What is the return? [6 Marks]