Consider the following selected financial information for Britvic plc, the British soft drinks company (and constituent of the FTSE250 index). Cash generated from operations is 232.3m (Annual Report, 2021). The cost of investment is 56.4m. The number of outstanding shares is 266.8m. The estimated cost of capital is 9.8% (derived in Assignment One). For this question assume the company is financed entirely by equity. (a) Calculate the value accruing to shareholders if (i) the company makes a dividend pay-out of 74.8m (ii) the company does not pay any dividends. [15% of marks in total] (b) Consider an investor holding 1,000 Britvic shares. (i) If the company does not pay any dividends, show how the investor can create homemade dividends that would be consistent with the dividend payout in Q1 part (a) (i). (ii) If the company does pay a dividend of 74.8m, show how the investor can create a homemade dividend consistent with a zero-dividend policy.