Q3. Business shares have an initial price of $15 per share, paid a dividend of $3.25 per share during the year, and had an ending price of $12.25 per share. Compute the percentage return, capital gain yield and dividend yield for each share.

Q4. The following information relates to the Arya Corporation Ltd. Calculate the WACC of Arya Ltd.

a.Arya Ltd. has 12 million ordinary shares on issue, which are currently trading for $8 each. Arya just paid $2 dividend per shares; these dividends are expected to grow at the rate of 5 per cent per annum indefinitely.

b.Arya's current market value of preference share is $54 million. Arya pays an annual preference dividend of 95 cents per share, and the current price of each preference share is $4.

c.Arya issued 30,000 bonds with a face value of $1,000 each. ABC (An investment firm) is ready to buy these bonds at their face value. Coupon rate is 12 per cent per annum payable yearly. The corporate tax is 30 per cent.