Always A Winner Ltd. is considering expanding its gambling network. The Managing Director of the company, Mr GG, has offered you a good tip for the races if you could provide information on the appropriate %u2018discount rate%u2019 for calculating the viability of the proposed project. To help you with your calculations, he has tabled the following extracts from the company%u2019s latest Financial Statements
- Selected Financial data as at 31 December 2002:
- SHAREHOLDERS FUNDS
- Ordinary shares Issue price $1.00 each, fully paid 20,000,000
- 10% Preference shares Issue price $2.00 each, fully paid 15,000,000
- Retained Profit 14,500,000