Question 5 (257 You are one of the shareholders of Mixed Emotions (Pty) Ltd and you have received the following dividende per share over the last five years per share Year 2020 2019 2018 2017 2016 Dividend 2.78 2.62 2.54 2.48 2.08 Mixed Emotions communicated a dividend per share of 2.98 for the 2021 year of assessment and management expects dividends to grow at a constant dividend growth rate. Required Show all calculations and round off answers to two decimals 5.1. 5.2. 5.3. Use the dividends listed in the table above together with the future value interest factor tables to calculate the average dividend growth rate for the period 2016-2020, (4) If you expect to receive a return of 14% for your investment in Mixed Emotions' shares, how much would you be prepared to pay for one share? (4) If you expect to receive a return of 10% for your investment in Mixed Emotions' shares, how much would you be prepared to pay for one share? (4) A required rate of return on investment includes both a risk-free rate and a risk premium. Assuming that the risk-free rate for both the above required rates of return is 6%, compare your answers to 5.2 and 5.3 and explain the effect of the changes in the risk premium on the share prices, (13) 5.4. Question 6 [5] Calculate the WACC for a company using the following information: R2 000 Ordinary shares Preference shares R5 000 R3 000 Long-term debt . Shareholders of preference shares require a return of 12%, Shareholders of ordinary shares require a return of 8%. Financial loan bears interest at the prime rate of 7%