Required 3.1 Calculate the weighted average cost of capital, using the Gordon Growth Model to calculate the cost of equity 1221 3.2 Calculate the cost of equity, using the Capital Amat Pricing Model 7,20 VANESSA QUESTION 4 (251 Nexcare (und) operate a number of car washes and auto valet services. The company has experienced a reasonable trading wear. They are deciding whether to pay out 1248000 in accumulated cash in the form of dividend to shareholders or embark on a share repurchase campaign Current earnings are 87,20 per share and the share sells for R90 ES Their abbreviated balance sheet before paying out the dividend is as follows: SHOPU iro Assets Equity and Liabilities 400 000 Tangible assets 620 000 Equity inventories 40 000 Debt 180 000 60 000 Receivables Bank/cash Total 300 000 800 000 SOO 000 Total firstea Required 41. Calculate the number of shares in issue if the company where to pay the dividend 12) 42. Calculate the number of shares in issue of the company were to repurchase its shares (3) 43. Spanking clean (d) is deciding whether to pay out cash dividend or not. Discuss the option of dividend reinvestment plans and outline the benefits to the company and its shareholders. 16) 4.4. Calculate the dividends per share for the first alternative, Le pay the dividend) 12) 4.5. Determine the net asset value of the firm should the company not exercise the option to repurchase its shares (2) 46. Determine the new share price, EPS and price earnings ratio under both alternatives (le Pay the dividend or repurchase the shares) (10) TE es = ols 248 ols 7,20 1 QUESTION Mecata sumber a car washine valge. The company writerson the whole counterthur du hare estos 7,20 16 Lyo 520 000 Their abbreviated balance sheet before in the dividend is as follow Surface Assets Equity and Lates Tangible assets 100 000 Equity Berventories 40 000 Neceivables 60 000 Bank/cash 300 000 Total 800 000 Total Debe 180 000 77 B00 000 2 3 sos Required 41 Calate the number of shares in issue of the company where to pay the dividend 2) 4.2. Calculate the number of shares in issue of the company were to repurchase its shares 13) Spanking clean (ltd) is deciding whether to pay out cash dividend or not. Discuss the option of dividend reinement plans and outline the benefits to the company and its shareholders. 44. Calculate the dividends per share (for the first alternative, Le pay the dividend) (2) 4.5. Determine the net asset value of the firm should the company not exercise the option to repurchase its shares (2) 19 Chocolate Friedman 4.6. Determine the new share price, EPs and price earnings ratio under both alternatives (ie. Pay the dividend or repurchase the shares)