a. BMIG Ltd has a current share price of $12.13. It is expected to pay $0.73 in dividends next period and it has a growth rate of 12%. Estimate the cost of equity capital for BMIG Ltd.
b. An investor in Australia would like to set up an international portfolio with an expected return of 18%. Assuming a risk-free rate of return in Australia of 3%, a world risk-free rate of 3% and an expected return on the world market portfolio of 25%, what is the required beta for the portfolio to achieve this expected return?
c. Discuss three of the five main states in the industry life cycle of a product?