Question 3 (20%) ABC Co, which is listed on a stock exchange, has 100 million shares in issue and the current share price is $2.50 per share. The recent dividends per share of the company are as follows. Year 2010 2011 2012 2013 2014 Dividend per share 19.38 20.20 20.41 21.02 21.80 (cents) a. What is an estimate of the growth of dividends? (4 marks) b. What is the cost of equity? (4 marks) c. ABC Co also has in issue bonds with a book value of $60 million which was issued at par with a coupon rate of 6%. Calculate the pretax cost of debt and state the reason. (4 marks) d. What is the market value of company's assets? (4 marks) e. ABC Co faces a 30% tax rate. Given the information in parts (a) through (d), and your answers to those problems, what is the company's WACC? (4 marks