Click to see additional instructions An investment of R110 has a real value of R124.63 at the end of a three-year period. During this same time period, the rate of inflation is 5.85% per annum for the first year and 6.05% per annum for the last two years. Calculate the annual money rate of return applicable over this three-year period. (Round to at least 5 decimal values in your calculations.) % (Round your answer to 3 decimal places and write it Answer: as a %, ie 2.125%) An ordinary share pays annual dividends. The next dividend is expected to be R6 per share and is due in exactly six months' time. It is expected that subsequent dividends will grow at a rate of 5.5% per annum compound and will continue in perpetuity. Calculate the price paid by the investor for 1,000 shares if the expected yield is 7% per annum. Answer: (Fill in the The correct equation of value to calculate the price is: correct number from the options given below.) 1. P = 1000 x 6(1.055) 0.5 y, 0.5 + 6(1.055) 1.5 y 1.5 + 6(1.055) 2.5 y 2.5 + ...) 2. P = 1000 x 6[1-(1.055) ] (1-105505,0.5) 61,0.5 3. P = 1000 x (1-1055v) 4. P = 1000 x 6(1.055) v + 6(1.055) ?y2 + 6(1.055)3y3 + ...) The price paid by the investor is: R (Round to 2 decimal values.)