Question: Question Three (14 marks) Part a (7 marks) ABC Hardware Ltd's current fuliy franked dividend per share is $0.95. The estimated cost of equity capitai

Question Three (14 marks) Part a (7 marks) ABC Hardware Ltd's current fuliy franked dividend per share is $0.95. The estimated cost of equity capitai is 9% and the corporate tax rate is 30%. What is the estimate of your price under the assumption of zero growth? (2 marks) What is the estimate of your price under the assumption of constant growth of 7% into perpetuity? (3 marks) Are these answers consistent? Why or why not? (2 marks)

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