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Additional information The ordinary shares are currently trading at $4.2 per share. Commonwealth government bonds return is 5% p.a. compounded annually. The return on the

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Additional information The ordinary shares are currently trading at $4.2 per share. Commonwealth government bonds return is 5% p.a. compounded annually. The return on the market portfolio is 13.5%. AOl's beta is 1.25. Its debentures are priced at 96.5. The current return on AOI debenture is 2% above the government bond rate. No company or personal taxes are levied. The existing capital structure is unlikely to change

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