e) You are trying to value Blackmores share today (End of 2019). Assume the current price of the share in the stock market is $88.16 and that you would like to hold the investment for 5 years. Assume that the total dividend paid by Blackmores in the 2019 year were paid as a lump sum (at once) today. You also estimate that for the next two years dividends will grow respectively at 30%, 25% per year. After this (starting in time 3) you estimate dividends will grow at a constant rate of 6% forever. Assume that today the Australian treasury notes 2.5%, the market risk premium is 8% and the beta of Blackmores is 1.16. Based on this price would you purchase the share? Why or why not?

f) Assume that the Blackmores Group would like to replace its bank loan facilities (2019) with a new issuing of bonds. Assume that the issue will have a coupon rate of 1.5% with a 10 year maturity. Assume this are semi-annual coupon bonds and each have a face value of $1.000 and the required rates of return for similar bonds in the market is 2.5%.What would be the issuing price of these bonds?