Calculate the price of the shares at the end of the year

Assignment Help Financial Accounting
Reference no: EM132743218

X ltd had 25000 equity shares of shs.100each outstanding on 1st November, the shares were issued at per in the market, the company removed constraints in the dividend policy,

The company became ready to pay dividends of shs.15 per share for the current calendar year. The capitalization rate is 15%. Using MM approach assuming that no taxes.

REQUIRED

Problem 1: Calculate the price of the shares at the end of the year.

Problem 2: Find out the number of new shares that the company issues to meet its investment needs of shs.1,500,000,assuming the net income of shs.750000 and assuming that dividend is paid.

Reference no: EM132743218

Questions Cloud

Find the sales tax and total cost : A store is selling a television for $1,224.95. and Ramon purchases a camera for $399.99. The sales tax rate is 5.5%. Find the sales tax and total cost.
How do determine the break-even point in sales units : Determine (a) the break-even point in sales units and (b) the break-even point if the selling price were increased to $102 per unit.
Find the estimated depletion for year : Find the estimated depletion for year 5 based on the percentage depletion method and the cost depletion method
Impact of consumer behavior on marketing strategy paper : Review and evaluate a specific example of how this organization utilized its knowledge of consumer behavior to adjust its marketing strategy.
Calculate the price of the shares at the end of the year : Find out the number of new shares that the company issues to meet its investment needs of shs.1,500,000,assuming the net income of shs.750000
Networking relationships : Analyze how those connections affect professional networking relationships. If you are part of a small organization, you may look at external agencies,
How do mutually exclusive and independent projects differ : How do "mutually exclusive" and "independent" projects differ? What kinds of nonfinancial information are needed in order to conduct the analysis of a project?
Briefly describe what is meant by the time value of money : Briefly describe what is meant by the time value of money. What is the meaning of discounting? Provide an illustration
Prepare all journal entries related to the investment : Prepare all journal entries related to the Investment during 2017. Show all answers in millions ($). For example, $2,190,000 would be shown as $2.19M.

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

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