Roskor Mining Limited (RML) has been mining uranium in Namibia for the past seven years. In 2014, RML has received another offer from a Canada based Uranium company to acquire 49% equity stake of the company. This investment would afford RML access to latest technology in mining uranium, capital to expand the mining operations and access to international markets which will result in higher selling prices and increased profits. RML is listed on the Namibian Stock Exchange. You have extracted the following information from the latest audited and published financial statements: Notes: 1. The company has 3000000 authorised ordinary shares of which 2400000 shares have been issued at a nominal value of N\$1.50 each. The company has earnings of N\$1 570000 for the year ended 30 June 2014. RML currently has a Price-eamings (P/E) ratio of 8 . 2. No preference dividend has been paid since 2013. The company is planning to start preference dividends again from 2016. All arrear dividends will be paid in 2016. You may assume dividend payments are made at the end of each year. Similar preference shares are currently trading at 10% yield per annum. 1 3. The market interest rate for debt in the same class as RML's debentures is 12% per annum. The debentures are redeemable in 5 years from now at a premium of 7%. 4. The company tax rate is 30% and the company is in a tax paying position