BHP Billiton, an Australian company, just paid $$0\mathrm{.}85$ as a dividend,

which is expected to grow at $4\mathrm{.}0$ per cent. Its most recent stock price

is $$72.$ Further, the company has a debt issue outstanding with $23$

years to maturity that is quoted at $80$ per cent of face value. The issue

makes semiannual payments and has an embedded cost of $6$ per

cent annually. It considers a debt$-$equity ratio of $0\mathrm{.}60$ and a $22$ per

cent corporate tax rate. This year, the company has an EBIT of $$3\mathrm{.}15$

million. Depreciation, the increase in net working capital, and capital

spending were $$265,000,$$$105,000,$ and $$495,000,$ respectively.

Therefore, you expect that over the next five years, EBIT will grow at

$15$ per cent per year, depreciation and capital spending will grow at

$20$ per cent per year, and NWC will grow at $10$ per cent per year. It

also has $$19\mathrm{.}5$ million in debt and $400,000$ shares outstanding. After

Year $5,$ the adjusted cash flow from assets is expected to grow at $3\mathrm{.}50$

per cent indefinitely.

Answer the following five $(5)$ questions based on the above

information and enter only the number as an answer, for

example, $1234\mathrm{.}56.$ Two $(2)$ marks for each correct answer, a total of

ten $(10)$ marks.