Question 1 (25 marks) The most recently audited Statement of Financial Position of Papasa Ltd. reads as follows: Papasa Ltd. Statement of Financial Position as at 30th April 2022 Assets N$m Non-Current Assets 2 099 Land and Buildings 1 612 Plant and Equipment 412 Fixtures and Fittings 75 Current Assets 692 Inventories 215 Trade Receivables 465 Cash and Cash Equivalents 12 Total assets 2 791 Equity and Liabilities Equity 2 112 N$ 2 Ordinary shares 500 12% N$5 Preference shares 750 Accumulated Profits 862 Non-Current Liabilities 500 8% Irredeemable Debentures 200 5% Debentures (Redeemable 30/04/2017) 300 Current Liabilities 179 Trade Payables 179 Short Term Borrowings - Total equity and liabilities 2 791 Further relevant details relating to Pass Ltd.s Statement of Financial Position as at 30/4/2022 are as follows: Ordinary shares are presently trading at N$5.50 cum-div. Preference shares have an ex-div market value of N$1.80. Papasa Ltd.s most recent board meeting agreed a dividend for the year of N$0.50 per ordinary share. This will be paid in one weeks time. Papasa Ltd. expects an average annual rate of growth in dividends of 6%. Redeemable Debentures (excluding interest) are presently trading at 88.33% of the value they were issued at. Irredeemable Debentures (excluding interest) are trading at 110% of their par value. Debenture interest is paid annually. All payments relating to the y/e 30/04/2022 have been made in full. All preference share dividends have been paid for the year ended 30/4/2022. Corporation tax of 20% is payable on profits in the year in which profits are reported. Required: (a) Using the Gordons dividend growth model to value equity, calculate Papasa Ltd.s weighted average cost of capital (WACC) (NB. The weighting should be based on market values) (20 marks) show all your workings2. (b) State five limitations of the Gordons growth model. (5 marks