1)A company has annual net operating cash flow (X) of 1.9 million dollars in perpetuity and the market value of
its capital (V) is 10.4 million dollars. What is the company's cost of capital k o? Provide your answer as a percentage to two decimal places. Do not enter the % sign.
2)The next dividend for ABC Limited will be $0.4 per share (D 1). Investors require a 12 % return on companies such as ABC Limited. ABC's dividend increases by 4 % every year. Based on the dividend growth model what is the value of ABC Limited shares today? Price to the nearest cent. Do not enter the $ sign.
3)What is the cost of capital for bank overdraft (kbo). The overdraft rate is 5.9 % pa compounded 12 times a year? Answer as a percentage to two decimal places (2.12% should be entered as 2.14). Do not enter the % sign.