Small Ltd is a wholly-owned subsidiary of Big Ltd. Although the subsidiary has provided satisfactory levels of performance, Big Ltd is considering the sale of the subsidiary as it is experiencing trading problems in other parts of its operations, The sale of Small Ltd would help Big Ltd raise some much-needed finance. Sme Ltd's most recent Statement of Financial Position is given below: Statement of Financial Position as at 28 February 2018 2018 R'000 2017 R'000 ASSETS Non-current assets Land and buildings Fixtures and fittings Motor vehicles 455 018 428 982 9 350 16 686 466 113 440 185 8 779 17 149 Current assets Inventories Trade and other receivables Cash and cash equivalents 1 326 295 91 850 1 009 998 224 447 1 048 829 91 994 813 807 143 028 Total assets 1 781 313 1 514 942 EQUITY AND LIABILITIES Equity Issued capital Retained earnings 923 348 721 506 201 842 914 345 734 288 180 057 Non-current liabilities Bonds 131 929 131 929 122 292 122 292 Current liabilities Trade and other payables Taxation 791 419 653 949 137 470 792 053 638 181 153 872 Total equity and liabilities 1 781 313 1 514 942 Small Ltd reported net profit after taxation of R142 886 000 and paid an ordinary dividend of R50 962 000 for the year ended 28 February 2018. Dividends are expected to grow at 6% per annum indefinitely. The company has 50 million ordinary shares outstanding and its cost of equity is 11%. The industry average price earnings (PE) ratio is 8.5 times. An independent valuer has recently estimated the current realisable value of the company's assets as follows: Land and buildings Fixtures and fittings Motor vehicles Inventory R 000 643 473 7 480 10 012 101 035 The values of the remaining assets (as shown in the Statement of Financial Position) were considered to reflect their net realisable values. Required: Dividend growth model