Question 1a) The last dividend paid by Homeland Corporation was $2.25 per share. Five years ago, the firm paid $1.90 per share and dividends are expected to grow at the same annual constant rate in the future as they did over the past five years. What has the annual growth rate in dividends been during the past five years?3 marks

b) What is the market value of 8% debentures redeemable in 12.5years at a face value of $1m, when similar securities are yielding 10%. The debentures pay interest semi-annuallyand the last coupon payment has just occurred.5 marks

c) What would be the effect on the price of BHP companys share ofan unexpected fall in interest ratesin Australia? Explain.