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Hi! Hoping someone could please help me with the below questions. Thanks :) The following is from a Leisure Pty Ltd's 2019 balance sheet: Paid

Hi! Hoping someone could please help me with the below questions. Thanks :)

The following is from a Leisure Pty Ltd's 2019 balance sheet:

Paid Up capital (1 million shares) $2,000,000
Debentures (9%, mature November 2026) $3,000,000
Bank Overdraft (permanent source of funds) $3,000,000

- Leisure paid a total of $400,000 in dividends this year. It is expected that dividends ends will grow at 5% per annum, in perpetuity. Ordinary dividends are fully franked.

- Leisure's Market capitalisation is $3,200,000

- Debentures were issues at par in 2016, giving the company $100 of proceed each. The current market value of a debenture is $107. Coupons are paid semi-annually.

- The current bank overdraft rate is 9% per annum, compounding daily.

- The corporate tax rate is 30%, and the franking credit utilisation rate is 40%.

Based on this information, calculate the market value are the after tax effective rate of each item. Show your workings.

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