The following are the dividends and earnings of Killmarks Ltd over the last five (5) years. Year Dividends Earnings 000 000 2001 150,000 400,000 2002 192,000 510,000 2003 206,000 550,000 2004 245,000 650,000 2005 262,000 700,000 Killmarks Ltd is 100% equity financed company, and there are 1 billion shares in issue, each with a market value of 3.35 ex-div. a) 

What is the cost of capital? b) What implications does dividend growth appear to have for earnings and retentions? 

 

Answer rating: 100% (QA)

Answer Killmarks Ltd Capital Analysis a Cost of Capital We cannot calculate WACC Weighted Average Co... View the full answer