Two approaches to determining the cost of ordinary shares to a business are the dividend based approach and the risk/return based approach. (a) Present a systematic understanding of these (explaining each constituent part) these two approaches to determining the cost of ordinary shares to a business. (10 marks) (b) Moy Investments Plc has ordinary shares in issue that have a current market value of 2.20. The annual dividend to be paid in future years is expected to be 0.40. Calculate the cost of ordinary shares to the business ( 5 marks) (c) Ross Plc has ordinary shares in issue that have a current market price of 1.50. The dividend expected for next year is 0.20 per share and future dividends are expected to grow at a constant rate of 3% a year. Calculate the cost of ordinary shares to the business (5 marks) (d) Mann Plc has recently obtained a measure of its beta from a business information agency. The beta obtained is 1.2. The expected returns to the market for the next period is 10 per cent and the risk-free rate of government securities is 3 per cent. Calculate the cost of ordinary shares to the business