Example of market model, Finance Basics

Assignment Help:

Example of Market Model

Illustration:

For the past five (5) years, the MPS and DPS for XYZ Ltd were follows as:

 

1998

Shs.

1999

Shs.

2000

Shs.

2001

Shs.

2002

Shs.

MPS as at 31st Dec

DPS for the year

40

-

45

3

53

4

50

3

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%


Related Discussions:- Example of market model

Specific cost, I need a report on Specific Cost. Can you please assist me f...

I need a report on Specific Cost. Can you please assist me for Specific Cost report for about 2500 words?

Potential investors - measuring business performance, Potential Investors -...

Potential Investors - Measuring Business Performance Potential investors These parties are interested in a company in total both on long and short term basis in particula

Setting of optimal cash balance, Setting of Optimal Cash Balance Cash ...

Setting of Optimal Cash Balance Cash is often identified like a non-earning asset since holding cash quite than a revenue-generating asset includes a cost in form of foregone

Clientele effect theory, Clientele Effect Theory Advance via Richardso...

Clientele Effect Theory Advance via Richardson Petit in 1977.It stated such different types of groups of shareholders or clientele have different type of preferences for divid

Advantages of central depository system or cds, Advantages of Central Depos...

Advantages of Central Depository System or CDS 1. It shortens the registration procedure in the stock exchange that is high speed of registering shareholders. 2. It improve

Financial leverage on a cost of equity, Please describe the effect of finan...

Please describe the effect of financial leverage on a cost of equity and firm's equity beta.

Determine the functions of new issue market, Determine the Functions of New...

Determine the Functions of New Issue Market The key function of new issue market is to facilitate transfer resources from savers to the users. Savers are individuals, insura

Governmental and not for profit accounting - cafr, Obtain a copy of a Compr...

Obtain a copy of a Comprehensive Annual Financial Report (CAFR) for a state or local government for which you would have an interest. Answer the following questions regarding that

Classification of debenture finance, Classification of Debenture Finance ...

Classification of Debenture Finance i) Secured Debentures These are those types of debentures which a company will secure generally in two ways, secured along with a fixe

Channelling of funds from savers to spenders important, How is the channell...

How is the channelling of funds from savers to spenders very important? The channelling of funds by savers to spenders is very significant for two purposes: • One, lender-sa

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

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!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd