What is the definition of capital budgeting?

Select one:

a. Allocating the available capital amongst possible projects.

b. Ensuring that there is enough capital available to undertake all possible projects.

c. Making sure that there is surplus capital left over after all possible projects have been undertaken.

d. Both (a) and (b).

A share is expected to pay a dividend of $3.67 next year, and this dividend is expected to grow at the rate of 3% in perpetuity. If the current price of the share is $64.69, what is the cost of ordinary shares for the firm?

Select one:

a. 8.84%

b. 7.22%

c. 9.86%

d. 8.67%