Suppose the year-on-year growth rate in dividends in company EFT is 3 percent. Note the following:

In the past period (i.e., t=-1) the dividend is $3.010 per share; and

In the present period (i.e., t=0) the dividend is $3.100 per share. (*)

The current (25 January 2021) ex-dividend share price of stock EFT is $53.216.

(a) In accordance with the Gordon Constant Dividend Growth Model, compute stock holders annualized required rate of return (Ke, EFT) for stock EFT.

* Assume dividends are distributed in one complete payment per year. An investor purchasing stock EFT on 25 January 2021, at ex-dividend price P0, EFT, thus receives its first dividend in 12 months time (t=1) and the second one in 24 months time (t=2), and so on.

(b) Compute the dividend yield on stock EFT based on the current share price and dividends at t=1 (i.e., the dividend per share receivable 12 months from now).

(c) In relation to the information in part (a) above suppose that company EFTs net profit (i.e., profit after corporate tax) in period t=0 is $2,402.5 million. Accordingly, determine the companys dividend payout ratio at t=0 if the dividend per share paid to Ss ordinary shareholders is $3.100. (*)

(*) Note that S has 620 million ordinary shares outstanding as of t=0.