Question 23 (14 marks) AJC Company Pty Ltd (is expecting to pay a $2 dividend next year. This dividend is expected to grow annually at a rate of 4%. The current share price for AJC company is $27. Please note that you do not need to type $ or % symbols. 23a. What is an estimated cost of equity for AJC Company? Round to 2 dpi. (3 marks) Answer- % 23b. Currently priced at $32, AJC Company also has preference shares outstanding that pay a $4 fixed dividend. What is the cost of these preference shares? Round to 2 dpi. (3 marks) Answer= % 23c. Existing debt, issued 5 years ago, has a coupon rate of 6%. AJC Company has just issued new debt at par with a coupon rate of 6.50%. What is Global Company's pre-tax cost of debt? Round to 2 dpi. (2 marks) Answer- % 23d. AJC Company has three (3) million preference shares outstanding and four (4) million ordinary shares outstanding. AJC equity has a total book value of $80 million. Liabilities have a market value of $60 million. If ordinary and preference shares are priced as in parts (a) and (b), what is the market value of AJC's Company's assets in millions of dollars? (3 marks) Answer - $ million