Q21 Allfresh Limited manufactures consumer products for a mature product market. As such, its growth rate is fairly minimal and expected to be only 2.0% per annum. The company has just paid a dividend of $0.57 per share. The company has a beta of 0.9, while the current risk free rate is 2.5% and the expected market risk premium is 7%.

The share price for Allfresh Limited is . (e.g. $12.424 should be answered as 12.42)

The only debt Allfresh Limited has is $70 million of bonds (par value) that it issued three (3) years ago. When the bonds were first issued three years ago they had a stated 10-year maturity and coupon rate of 9.5%. Currently, the bonds are trading at an investors required rate of return 8.0%. The company tax rate is 28% and the current market value of its equity is $145 million. (Use required return you calculated in Q21 above for the cost of ordinary shares.)

The WACC for Allfresh Limited using the current market values of debt and equity is .