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Part A The following information is available for Makwebo Ltd Current price per share on the Lusaka Stock Exchange Current year's dividend per share Expected
Part A The following information is available for Makwebo Ltd Current price per share on the Lusaka Stock Exchange Current year's dividend per share Expected average annual growth rate of dividends Beta coefficient for Makwebo Ltd In addition, the following information has been established: Expected rate of return on risk-free securities Expected return on the market portfolio K2.40 KO 20 1.0 69 12% Required 1. Make brief commentaries on the term cost of capital, clearly eiting examples? (4 Marks) 2 Calculate the cost of equity capital for Makwebo Lid from the data given above, using the following methods Dividend growth model (4 Marks) b. The capital isset pricing model (4 Marks
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