Question: 5. Equity analysts forecast that QGL will pay its first dividend of 10 cents per share in the year 2027 with a dividend growth of

5. Equity analysts forecast that QGL will pay its first dividend of 10 cents per share in the year 2027 with a dividend growth of 5% p.a. thereafter. What is a fair price for an QGL share in 2024? Your Excel result field must contain the formula for your calculation (only providing a number will not give any marks). For example: =6-3+(7*((1.25)^4)).

6. Some investors prefer receiving dividends, some do not. Provide one argument why investors do not want to receive dividends.

7. Assume climate change can negatively influence QGL. One important question is how this risk can be accounted for in capital budgeting. Describe one change to one assumption presented in the case that could be implemented in the capital budgeting model. If your suggestion is implemented, would the NPV increase or decrease? Why? Page 7

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