Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Q The issued capital of Indiana Ltd.comprises of 100,000 ordinary shares of Rs. 100 each. It has no fixed interest capital. It has paid a dividend of Rs. 30 per share consistently over years and each share has a current market value of Rs. 270 cum dividend. The next dividend is due to be paid shortly. Earnings have been running at about the same level as dividends.
The directors are now considering a new investment proposal, requiring an outlay of Rs. 20,00,000, which is expected to yield a net cash inflow of Rs. 4,00,000 p.a. indefinitely. All additional net cash receipts could be used to increase dividend payments. Three sources of finance for the new project are under consideration:
(a)
A reduction in the current dividend.
(b)
A rights issue of one new share for every ten shares held, at Rs. 200 per share;and
(c)
A new public issue of ordinary shares.
Assume that the broad details of the directors' plan become known in the stock market (but were not known when the share price was Rs. 270).
Estimate the new price per share:
If the current dividend is reduced; and
If the rights issue are made
Calculate the price per share required in a new public issue if the entire surplus generated by the new project is to accrue to the existing shareholders.
A project has a contribution margin of $5, projected fixed costs of $13,000, projected variable cost per unit of $12, Determine operating cash flow for the project.
Your shoe design makes 23 pairs for every 1,000 yerds of textile. If you get an order for 500K orders of pairs, then what would your initial capital investment be?
A brand of television has a lifetime that is normally distributed with a mean of 7 years and a standard deviation of 2.5 years. What is the probability that a randomly chosen TV will last more than 8 years?
At December 31, 2013, Vega Vaccum Corporation has cash in bank of 104,000, restricted cash in a separate account of $19,000, and a bank overdraft at another bank of $500. How much should it report as cash on the balance sheet?
Calculation of NPV and IRR and MIRR and Profitability Index and Besides future cash flows what other financial criteria would you consider in making your decision between two or more alternatives
You have been given financial statements and asked to analyze financial performance of your division. Other managers have suggested you use financial ratios in your analysis.
Develop a fundamental analysis of the company using the analytical tools such as the Dupont Framework. For my purposes I am comparing Sprint and Verizon.
Choose three terms which are most relevant in investment process and describe what they are and why they are relevant.
Calculation of net present value with given cash flow and probability and Should the company undertake the project
Describe why is debt a comparatively cheaper form of finance than equity and if debt is cheaper than equity, why do companies approach the equity markets?
Determine which of the following motivates corporations to enter into stock repurchase programs?
What are the bid-ask spreads for each currency India and Brazil (include calculations) What are the implications of the presence or absence of a forward exchange market?
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd