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

Ba 207, on may 1, counts, inc has a balance of $1000 in office supplie. dur...

on may 1, counts, inc has a balance of $1000 in office supplie. during may the company buys $500 more of the office supplies. on may 31 the company counts the supplies and finds 20

What does beta measure and how is it interpreted, The Beta of several indus...

The Beta of several industry sectors is shown below. Industry                                                                                            Beta (β) Banks

Earnings yield valuation, Earnings Yield Valuation EY is given via the...

Earnings Yield Valuation EY is given via the earnings made with the business expressed like a percentage of the market price of the business that is The Formula For Earning

#title.ASF, Ask questioAustralian’s Speleological App Projectn #Minimum 100...

Ask questioAustralian’s Speleological App Projectn #Minimum 100 words accepted#

Bonferronis approach, We have 10.000 genes and 4.000 of them are annotated ...

We have 10.000 genes and 4.000 of them are annotated for a certain attribute of interest. a. If we have a single set of 10 genes, how many of them should be annotated to be cons

Plastic money or credit card finance, Plastic Money or Credit Card Finance ...

Plastic Money or Credit Card Finance This is finance of a kind whereby a company will make arrangements for the use of the services of credit card organizations via the purcha

Assignment, How would you explain the value of financial planning to friend...

How would you explain the value of financial planning to friends or family? Which topics will you discuss with children in your life? Which topics do you feel are most imp

5 problem excel on time value concepts, How quickly could something like th...

How quickly could something like this be done? And how confidential is this? Has any student ever been caught using this service?

Net present value method - dcf technique, Net Present Value Method - DCF Te...

Net Present Value Method - DCF Technique The method discounts outflows and inflows and ascertains the total present value via deducting discounted outflows from discounted inf

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