help please

E) Samuels plc is a UK based company that operates in two industries: brewery, which makes up 60% of the company and tobacco, which makes up the remaining 40% of the company. The company is an all equity company financed by a share capital of 50 million 1 ordinary shares, currently priced at 3.00 each. The company pays out an annual dividend on its ordinary shares. The dividend payment forecast for next year is 42 pence per share which represents a growth of 1.8% on the current year's dividend payment. Management plans to maintain this growth rate in dividend levels for the foreseeable future. Management is currently looking at two capital investment projects, one in each industry. It cannot, however, decide what cost of capital to use to evaluate the two projects. The chief executive is keen to use Gordon's dividend growth model to estimate the overall cost of equity. The finance director is, however, insisting on using the capital asset pricing model (CAPM) on the grounds that the overall cost of equity may lead to under- or over-statement of the net present values (NPV) of the two projects under consideration. The average industry asset betas for the brewery and tobacco industries are 1.0 and 1.45, respectively. The risk-free rate of interest and the expected return on the market portfolio are currently 4% and 14% respectively Required: a. Calculate the overall cost of equity at Samuels plc using Gordon's dividend growth model. (4 marks) b. Calculate the required rates of return for the two industries at Samuels plc and the company as a whole using the CAPM. (6 marks) c. Explain the implications of your results in a) and b) above for the two projects under consideration at Samuels plc and comment on the views proposed by the chief executive and the finance director. (5marks) d. Discuss strengths and weaknesses of the CAPM and Gordon's dividend growth model for publicly quoted companies.(5MARKS)