Q6. Forest Pty Ltd declared a dividend of $2.50 yesterday. Miriam is interested in investing in this company, which has forecasted a constant growth rate of 7 per cent for the next several years. The required rate of return is 18 per cent. (10 Marks). a. b. c. Calculate the expected dividends D, D2, D, and D. (2 Marks). Find the present value of these four dividends. (2 Marks). What is the price of the share 4 years from now (P4? (2 Marks). Calculate the present value of P.. Add the answer you got in part b. What is the price of the share today? (2 Marks). Use the equation for constant growth (equation 7.4) and calculate the price of the share today. (2 Marks). d. e. Q7. ABC PTY LTD, is purchasing a machinery for their new juice factory at Wollongong at a total cost of $3.25 million. The old machine is obsolete and needs a replacement. The after-tax net income from this investment is expected to be $750 000 for the next 5 years. Annual depreciation expense was S650 000. The company's cost of capital is 17 percent. (10 Marks). a. What is the discounted payback period? (1 Mark for workings and 1 Mark for correct answer to equal a total of 2 Marks). Calculate the ARR. (1 Mark for workings and 1 Mark for correct answer to equal a total of 2 Marks). b