Find out the number of new shares

Assignment Help Financial Accounting
Reference no: EM132753333

Question - 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 - Calculate the price of the shares at the end of the year.

When dividend is not declared.

When dividend is declared.

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: EM132753333

Questions Cloud

Largest investment in change in working capital : In what sector of a business is the largest investment in change in working capital?
What is the risk neutral probability distribution for stock : What is the risk neutral probability distribution for the stock in the Black-Scholes model, including the parameters? What is the value of this option?
What were the equivalent units for conversion costs : Basil Corporation uses the weighted-average method in its process costing system. The Assembly Department started the month with 2,000 units in its beginning.
Differences between cash and wealth : Analyze the similarities and the differences between cash and wealth, looking at, for example, investment in real estate and investment in research.
Find out the number of new shares : 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
What amount will pepper have to invest : In the Mac Chiz partnership, Mac's capital is P140,000 and Chiz' is P40,000 and they share income in a 3:1 ratio, respectively. They decide to admit Pepper to.
Corresponding drop in profits : Why can a direct link not be drawn between an increase in production costs and the corresponding drop in profits?
How much is the total amount of related party transactions : In 2019, entity A sold goods to its subsidiaries (entities B and C) for P500,000 and P400,000, respectively. In 2019, entity A sold goods to its associates.
What was the cost of the units transferred : A total of 8,700 bats were completed and transferred to the Finishing Department during May. What was the cost of the units transferred

Reviews

Write a Review

Financial Accounting Questions & Answers

  What are the various required and voluntary deductions

What are the various required and voluntary deductions that employers withhold from employees' earnings? Do you think it is difficult for employers

  Find what is the nominal cost of nonfree trade credit

If a firm buys under terms of 2/15, net 35, but actually pays on the 20th day and still takes the discount, what is the nominal cost of nonfree trade credit

  Setting materials-slabor-overhead standards is challenging

Setting materials, labor, and overhead standards is challenging. If standards are set too low, companies might purchase inferior products and employees might not work to their full potential. Identify four types of specialists that you would assemble..

  Discuss necessary preparation and planning for the lily firm

Discuss the necessary preparation and planning for the Lily Company annual audit before beginning field work at the client's office.

  About the purchase discount

On December 28, 2012 Piedmont Supply Co. ships $155,000 of merchandise by common carrier to the Maxwell Company. The terms of the sale are 3/15, n/45, FOB destination. It takes 5 days for the merchandise to arrive at Maxwell Company. Both Piedmont Su..

  Which violates miller-modigliani conditions

Which violates Miller-Modigliani conditions for their irrelevance theorem? Asymmetry of information in market/ risk of bankruptcy

  Enter the preceding transactions in the purchases journal

Meloon Lawn Supply Company uses a multicolumn purchases journal and a general journal similar to those illustrated in the text. The company also maintains an accounts payable subsidiary ledger. The items below represent the company’s credit transacti..

  How much is worth today

Fifteen (15) years ago, your parents purchased an investment for $2,500. If the investment earned 6 percent interest each year, how much is it worth today?

  Focuses primarily on income statement information

Which of the following types of measures focuses primarily on income statement information?

  Prepare the sales portion of the entry for this sale

Prepare the sales portion of the entry for this sale on Randy's books and Prepare the cost of sales portion of the entry for this sale on Randy's books.

  Question 1prof obrien realized his dream and opened obrien

question 1prof. obrien realized his dream and opened obrien vineyards. at this point he only gives a pinot noir but

  Calculate the total cost of goods manufactured

Calculate the total cost of goods manufactured (COGM) in April. Kasi Furnishing produces tailor-made furniture for clients hence uses a job-order costing

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