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!
Example of Market Model
Illustration:
For the past five (5) years, the MPS and DPS for XYZ Ltd were follows as:
1998
Shs.
1999
2000
2001
2002
MPS as at 31st Dec
DPS for the year
40
-
45
3
53
4
50
52
Required
Determine the estimated cost of equity/shareholders percentage yield for every of the years included.
Solution
Year MPS Capital gain DPS % Return 1998 40 - - - 1999 45 5 3 (5+3 /40) * 100 = (8/40) * 100 = 20% 2000 53 8 4 (8+4 /45) = (12/45) * 100 = 27% 2001 50 -3 3 (-3+3 /53) = (0/53) * 100 = 0% 2002 52 2 - (2 +0 /50) = (2/50) * 100 = 4%
Year
MPS
Capital gain
DPS
% Return
5
(5+3 /40) * 100 = (8/40) * 100 = 20%
8
(8+4 /45) = (12/45) * 100 = 27%
-3
(-3+3 /53) = (0/53) * 100 = 0%
2
(2 +0 /50) = (2/50) * 100 = 4%
given profit margin 7%, total asset turnover is 1.94, Return on equity is 23.7%, what is the debt equity ratio
ROA - Return on Assets The Average of the industry ROA was 10.02% for 2004, 6.81% for 2005, and 7.32% for 2006. The chart showed that Lenovo had a little bit higher ROA th
Matching Approach - Financing Current Assets This approach is further referred to as the hedging approach. Beneath this approach, the firm adopts a financial plan that involve
Functions of the Financial Markets Functions of the Financial Markets or Institutions in Economy 1. Allocation of financial resources to the mainly productive units. Saving
For any company that is quoted on the London Stock Market, you are required to write a report to existing shareholders on any TWO of the following issues. Each answer carries equal
The business plan for a new company that has obtained a 5 year lease for operating a local bus service is shown below. Items marked with an asterisk represent continuous cash flow
Advantages of Floatation of New Shares 1. It facilitates the matter of securities to increase new finance, creation a company less dependent on retained earnings and banks.
The operating profit (EBIT) of ABC Ltd is Rs. 1,60,000. Its capital structure consists of the following: 10% Debentures Rs. 500000 12% Preference Shares 1
2.Calculating Project NPV-The Best Manufacturing Company is considering a new investment. Financial projections for the investment are tabulated here. The corporation tax rate i
Partnership Definition -Partnership may be defined as a relationship between persons carrying on a business in common with a view of profits. In partnership business, two or mo
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: +91-977-207-8620
Phone: +91-977-207-8620
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd