QUESTION 1 [20 MARKS] a. Briefly explain the inter-relationship between investment, financing and dividend decisions. (10 marks) b. The expected dividend per share on the equity share of Roadport Limited is $2.00. The dividend per share of Roadport Limited has grown over the past five years at the rate of 5% per year. This growth rate will continue in the future. Further, the market price of equity share of Roadport Limited, too, is expected to grow at the same rate. REQUIRED Estimate the fair intrinsic value of the equity share of Roadport Limited if the required rate of return is 15%. (8 marks) c. F plc has in issue 8% irredeemable debentures quoted at 90 p.c. ex int. Calculate the return to investors (kd). (2 marks)