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. It is 1 July, 2021. Hawk Ltd has a market capitalization rate (or required return) of 11%. Over 2021-22 (the financial year ending 30

. It is 1 July, 2021. Hawk Ltd has a market capitalization rate (or required return) of 11%. Over 2021-22 (the financial year ending 30 June, 2022, the companys return on equity (ROE) is expected to be 16% and its earnings per share (EPS) is predicted to be $4.80. The firms plowback ratio is 30%. I. Calculate, for Hawk Ltd: i. The dividend payout ratio. ii. The expected dividend at the end of 2021-22. iii. The dividend growth rate (g). iv. The theoretical share price at 1 July, 2021 (correct to the nearer cent). v. The P / E ratio. II. Do the above answers suggest that an ordinary share purchase in Hawk Ltd is an attractive investment? Explain why.

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