Now you know the required on equity will increse by 5.11% compound annually,next five years,now is 2016,June 18,the share price is 39,the dividend is 1.2,and the dividend payout ratio is 60,the net income is 231,total cash flow for operating activities are 290,total cash flow for financing activities are-150.3,total cash flow for investing activities are-159.3.
Please use the knowledge of NPV to decide the suitable financial strategy for the company and analyse how the share price will have an impact on your strategy.