An ordinary share will pay its first dividend of $1 in two years. After that, the annual dividend is going to grow 9% per year for two years. Four years from today, the dividend growth rate is expected to become constant at 4% p.a. forever. The rate of return is 14% p.a. Use the dividend discount model, which of the following can be used to find the share price today?(There may be more than one correct answer. You will lose marks by choosing a wrong answer. The minimum mark for the question is zero.) (2 marks) a. Select one or more: 1.092 (1.04) 1 1.09 1.092 + 0.14 -0.04 + 1.14 ' 1.142 1.143 1.144 b. None of the equation gives the correct answer. 1.092. (1.04) oc 1 1.09 1.092 + 0.14 -0.04 1.142 1.143 1.144 1.145 1.093 d. 1 1.09 1.092 0.14 - 0.04 + + 1.142 1.143.1.144 1.14" 1.092 1 1.09 0.14 - 0.04 + 1.142 1.143 1.143 1.092 (1.04) f. 1 1.09 1.092 0.14 - 0.04 1.142 1.143 1.144 1.144 A company is considering investing in project X. The company has a cost of capital of 10% p.a. Project X is an 8-year project with an initial cost of 300,000 The project will generate the following cash flows at the end of the years: Years Cash flows 1 90,000 90,000 2 3 4 90,000 90,000 90,000 5 6 90,000 7 90,000 -270,000 8 a) Calculate the payback period (in years) for project X. Round your answer to 2 decimal places. Do not include the unit. Do not use comma separators. E.g. 1234.56 (2 marks) b) Calculate the net present value (NPV) for project X. Round your answer to the nearest dollar. Do not include the $ symbol. Do not use comma separators. E.g. 123456 (2 marks) Project A and project are independent projects with conventional cashflows. Project A has an internal rate of return (IRR) of 15%. Project B has an internal rate of return (IRR) of 20%. Three companies are interested in investing in the projects. The cost of capital of each company is given below. Company Mango Kiwi Cost of capital 1096 1796 Cherry 2296 Provide your advice to each of the company. Company Mango should Company kiwi should Company Cherry should Project A and project B are independent projects with conventional cashflows. Project A has an internal rate of return (IRR) of 15%. Project B has an internal rate of return (IRA ng in the projects. The cost of capital of each company is given below. Cost of capital 1096 17% 2296 accept project A only accept project B only accept both projects accept neither projects Provide your advice to ea require more information for decision-making Company Mango should Company Kiwi should Company Cherry should Project A and project B are independent projects with conventional cashflows. Project A has an internal rate of return (IRR) of 15%. Project B has an internal rate of return (IRR) of 20%. Three companies are interested in investing in the projects. The cost of capital of each company is given below: Cost of capital 1096 1796 2296 accept project A only accept project B only accept both projects Provide your advice to accept neither projects Company Mango shod require more information for decision-making Company kiwi should IN Company Cherry should Project A and project B are independent projects with conventional cashflows. Project A has an internal rate of return (IRR) of 15%. Project B has an internal rate of return (IRR) of 20%. Three companies are interested in investing in the projects. The cost of capital of each company is given below. Company Cost of capital 1096 1796 accept project A only 2296 accept project B only Provide your advice to el accept both projects Company Mango should accept neither projects CO! any kiwi should require more information for decision-making Company Cherry should