You must solve each problem using the appropriate formula/e, which must be shown.

You must show ALL calculations

Question 1

Ross River Ltd produces glass containers. In July 2021, the company reported net profits after tax of $500,000 for the financial year 2020 2021 and announced that it will pay the annual dividend on 1 September 2021.

Due to increased demand, the company expects the net profits after tax for the 2021 2022 financial year to be 20% higher. Ross River Ltd intends to maintain its current dividend payout ratio of 60% and expects to pay the annual dividend for 2021 2022 on 1 September 2022.

Irina Stanton owns 10% of the ordinary share capital of Ross River Ltd. She has no savings and her sole income comes to fromRoss River Ltd. If Irina wishes to buy $5,000 worth of furniture in September 2021, and at the same time pay all her other bills totaling $35,000, calculate how much can she consume in September 2022. Assume the market rate of interest is 8% per annum.