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(Solved): Use the information provided below to calculate the followin...

Use the information provided below to calculate the following (expressed as percentages to two decimal places): 1.1 Cost of equity using the Capital Asset Pricing Model (4 marks) 1.2 Cost of preference shares (4 marks) 1.3 Cost of debt (3 marks) 1.4 Weighted average cost of capital (using your answers from questions 1.1 to 1.3) (5 marks) 1.5 Cost of equity using the Gordon Growth Model. (4 marks) INFORMATION Cyber Limited intends raising finance from three sources to fund its expansion. The following information is available to calculate the cost of capital: The capital structure consists of the following: ■ 2 million ordinary shares trading at R6 each according to the Johannesburg Securities Exchange but issued at R4 each a few years ago. ■ 3 million 9.5%, R2 preference shares which incurred floatation costs of 5% of the issue price. ■ R2 000 000 20% bank loan, due in June 2028. Additional information ■ The company tax rate is 27%. ■ A dividend growth of 10% per annum on ordinary shares was maintained over the past five years. The last dividend paid was 110 cents per share. ■ The company’s beta coefficient is 1.3. ■ The risk-free rate is 8%. ■ The return on the market is 20%.

(Solved): Long-term capital finances all permanent assets, but short-t...

Long-term capital finances all permanent assets, but short-term debt finances temporary current assets. Aggressive approach Conservative approach Maturity matching approach

(Solved): Suppose a 250. mL flask is filled with 0.90 mol of NO_(3) an...

Suppose a 250. mL flask is filled with 0.90 mol of

NO_(3)

and 1.9 mol of

NO_(2)

. The following reaction becomes possible:

NO_(3)(g)+NO(g)⇌2NO_(2)(g)
student submitted image, transcription available below

(Solved): Which of following is a key assumption of a perfectly compet...

Which of following is a key assumption of a perfectly competitive market? Group of answer choices Firms can influence market price. Commodities have few sellers. Each seller has a very small share of the market. none of the above

(Solved): True or False? Iconic memory (persistence of light and visi...

True or False? Iconic memory (persistence of light and vision) lasts longer than echoic memory (persistence of sound). Group of answer choices True False

(Solved): Many firms use odd pricing-charging prices such as $.99 in...

Many firms use odd pricing-charging prices such as

$.99

instead of

$1.00

and

$9.99

instead of

$10.00

. One reason for this pricing strategy is that consumers will somehow believe that the difference in price appears to be greater than it actually is. Researchers conducted consumer surveys to determine whether this is actually the case. What was the result of these surveys? The surveys found that small differences in price cause small differences in quantity demanded. There is no evidence that odd pricing makes economic sense. The surveys found indifference regarding this strategy among most consumers, but hostility among other consumers. The latter group resented what they viewed as an attempt to fool them into buying products with odd prices. Researchers concluded that odd pricing is counterproductive. Although the results were not conclusive, there is some evidence that odd pricing makes economic sense. The survey results were inconclusive because most consumers gave unreliable responses to the survey questions.

student submitted image, transcription available below

(Solved): Linear Equations with Two Variables (Part 1) Find an equatio...

Linear Equations with Two Variables (Part 1) Find an equation of the horizontal line through (3,1). The equation is (Type your answer in standard form. )

(Solved): How many real solutions does the system have? y=-3x-1 y=x^(2...

How many real solutions does the system have? y=-3x-1 y=x^(2)-3x+4 Enter your answer in the box.

(Solved): If a line passes through the points (1,5) and (7,5), what is...

If a line passes through the points (1,5) and (7,5), what is the slope? A

(Solved): 5. Identify the vertex, the axis of symmetry, the maximum o...

5. Identify the vertex, the axis of symmetry, the maximum or minimum value, and range of the parabola y=-x^(2)-6x-11