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Required: (a) Calculate the cost of equity capital using the Gordon dividend growth model (b) Calculate the dividend yield, and explain the difference between this
Required: (a) Calculate the cost of equity capital using the Gordon dividend growth model (b) Calculate the dividend yield, and explain the difference between this and the cost of (c) Calculate the cost of Betya's perpetual 8% debenture capital, the market price of capital in (a). which is R110 per R100 nominal (Betya pays company tax at 30%). State any assumptions you make, and justify any choices you make in doing your calculations (d) Explain (without doing any calculations) how you would calculate the cost of redeemable debt capital. Required: (a) Calculate the cost of equity capital using the Gordon dividend growth model (b) Calculate the dividend yield, and explain the difference between this and the cost of (c) Calculate the cost of Betya's perpetual 8% debenture capital, the market price of capital in (a). which is R110 per R100 nominal (Betya pays company tax at 30%). State any assumptions you make, and justify any choices you make in doing your calculations (d) Explain (without doing any calculations) how you would calculate the cost of redeemable debt capital
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