Q5a. Suppose your graduate base salary is $120,000 p.a. and your marginal tax rate is 37%. You bought 10,000 shares of COH and 5,000 shares of ANZ just on 1/01/2019. You

decide to sell them on 1/08/2021. Calculate your tax payable amount of each share separately, show your working in detail and state formula? (2 marks) Q5b. Assume constant growth model holds. The effective annualised return is 0.1021 and 0.2047 for ANZ and COH respectively. Find the share price of ANZ and COH at time 2021 if the average of the annual growth rate is expected to decline for ANZ and increase for COH from time 2021 onwards infinitely. You will need to consider calculating the annual growth rate in dividend for both shares using the formula (9t = ; -1) and show your working Dt Dt-1 (4 marks)

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