Question: hi please assist with fully detailed answer for Question 4 QUESTION 4 (25) 4.1 Discuss dividend payout policy and whether it has an impact on
hi
please assist with fully detailed answer for Question 4

QUESTION 4 (25) 4.1 Discuss dividend payout policy and whether it has an impact on share price. (6) 4.2 Explain why the different sources of capital have different levels of risk and return. 4.3 Discuss whether the dividend growth model or the capital asset pricing model should be used to calculate the cost of equity. Using the dividend growth model, an analyst has estimated that her company's cost of equity capital is 13% per annum. The current ex-dividend share price is 345.5 Rand, and the current dividend is 14 cents per share. Do calculations to show what rate of dividend growth the analyst is assuming. Required: Determine the rate of dividend growth that the analyst is assuming. Use calculations to support your answer (7)
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