The monthly working capital requirement for Starehe Limited are given as follows. Month Total working capital requirement Sh. 000 January 3,000 February 2,500 March 2,000 April 1,500 May 1,500 June 1,700 July 1,800 August 2,800 September 3,200 October 3,500 November 3,600 December 3,800 The short-term cost of financing working capital is 15% per annum whereas the long-term financing cost is 20% per annum. The firms adopt an aggressive policy in financing its working capital needs. 80% of the firms permanent working capital is financed using short term funds and the balance is financed using omg term funds. Required: Determine the total cost of financing the working capital needs of the firm (6 marks) ABC ltd expects with some degree of certainty to generate the following net income and to have the following capital expenditures during the next 5 years. Year 1 2 3 4 5 Net income Sh. 000 2,000 1,500 2,500 2,300 1,800 Capital expenditure. Sh. 000 1,000 1,500 2,000 2,500 2,000 The company has 1,000,000 million ordinary shares and pays dividends of sh. 1.0 per share. Required The dividend per share and external financing required in each year if the dividend policy of the firm is treated as a residual decision. (4 marks) The amount of external financing in each year that would be necessary if the present dividend per share is maintained. (4 marks) The amount of external financing in each year that would be necessary if dividend payout ratio of 50% is maintained. (4 marks)