Reference no: EM132665749
ASSIGNMENT ON COST OF CAPITAL
10% debentures of sh.150 each 15,000,000
A Company has a balance sheet whose long-term sources of finance indicates the following:
12% preference shares whose face value is sh.40 22,000,000
5,000,000 Ordinary shares 80,000,000
Retained earnings 4,000,000
Additional information
1. The current market price of ordinary shares is sh. 150 per share
2. The company pays tax at the rate of 30%
3. Preference shares are trading at sh.50 per share in the market
4. The maturity period of debentures is 10 years; the current market price is sh.100 per debenture.
5. The company has announced a dividend of sh. 8 per share that has been growing at the rate of 6% per annum
Required
Problem 1: Find the cost of capital based on market values and book values.
|
The foundational tenets of database development
: Locate five scholarly works related to the foundational tenets of database development, knowledge sharing, KM, ERPS, and/or KMS.
|
|
What the amount to be recognized as expense in year is
: At the beginning of year 1, an entity grants 100 share options to each of its 200 employees. What the amount to be recognized as expense in year 2 is
|
|
Calculate convexity for three-year five percent coupon rate
: Calculate the convexity for a three-year 5% coupon rate with a face value of $500,000 loan. What is the convexity of the same loan but with amortised payments?
|
|
Organ leadership and decision making
: What other topics would you have liked to have covered in this course? How has this course changed your perspective or outlook moving forward?
|
|
Find cost of capital based on market values and book values
: Find the cost of capital based on market values and book values. 12% preference shares whose face value is sh.40 22,000,000.
|
|
Explain difference in clinical and statistical significance
: Not all EBP projects result in statistically significant results. Define clinical significance, and explain the difference between clinical and statistical.
|
|
Financial institution falls victim to security breach
: Every so often, a large company, a government organization, a news agency, or a financial institution falls victim to a security breach.
|
|
Find what is the construction in progress
: What is the construction in progress, net as of 2015? The building was estimated to be built at a total cost of P 15,000,000 and is scheduled for completion.
|
|
Explain the use as one or the other type of reasoning
: In a 2 to 3 page, double-spaced essay (12pt font), write a personal and reflective essay and write it as an example of your best writing. Grammar, spelling.
|