Find the market price of share using the walter model

Assignment Help Financial Accounting
Reference no: EM132569525

Problem 1:- The present value of Rs 20,000 to be received after five years from now assuming 6% time preference for money is :

a) 14,940

b) 16,776

c) 12,551

d) 11,500

Problem 2:- Operating cycle can be delayed by:

a) Increase in WIP period

b) Decrease in raw material storage period.

c) Decrease in credit payment period.

d) Both (a) and (c) above

Problem 3:- Given the following information about Nile ltd. The market price of its share using the Walter`s model is Rs. ___________ Equity capitalisation rate (Ke)= 16% , Earnings per share (E) = Rs 13, Dividend paid out ratio = 25% , Assume return on investment is 14%.

a) 73.6

b) 56.45

c) 80.3

d) 71.22

Reference no: EM132569525

Questions Cloud

What are the total proceeds from the ipo : A company is doing an IPO underwritten by an investment bank. The company plans to issue 500,000 ordinary shares. The investment bank offers
List two possible performance measures : REQUIRED - List two possible performance measures for each of the four perspectives included in the balanced scorecard
Calculate the number of shares sold : A company needs to raise $1,800,000 (this is the gross amount before any cost comes off) for a business expansion. The company decides to issue shares
Demonstrate the basic theories of abnormal psychology : In this activity, you will demonstrate your understanding of the basic theories and techniques of abnormal psychology. Pick a character from a favorite book.
Find the market price of share using the walter model : Find The market price of its share using the Walter`s model is Rs. Equity capitalisation rate (Ke)= 16% , Earnings per share (E) = Rs 13
Functions of the lymphatic system : What are the major structures and functions of the lymphatic system and how does the lymphatic system interact with other body systems to help maintain homeosta
What are the expected returns for the three stocks : What are the expected returns for each of the three stocks next year?
State whether Inherent Risk have increased or decreased : State whether Inherent Risk, Control Risk or Detection Risk have increased or decreased. Provide an explanation for your answer in (a)
Cell structure and antibiotic resistance : The goal of the current issues paper is to explore a currently relevant scientific topic impacting, or likely to impact,

Reviews

Write a Review

Financial Accounting Questions & Answers

  Estimated expenses associated with conference

You have been asked to calculate how many units need to be sold to break even, based on the costs provided in task #3.

  Fairness and reasonablennes of paula accounting policies

Discuss the fairness and reasonablennes of paula accounting policies - revenue was recognized when cash was reveived from customers. most customers paid in cash but fer customers purchased and were allowed to pay in 30 days.

  Compute the cost of civilian and military versions of model

Compute the cost of civilian and military versions of Model KV10 using both direct labor dollars and machine hours as alternative allocation bases. Explain why Pelton Instruments may decide to use direct labor as an overhead allocation base.

  Calculation of ending cost of inventorythe company has an

calculation of ending cost of inventory.the company has an offer from a wholesaler to purchase the part for 31 per

  Discuss some of items found in the current liability section

Recommend, from the perspective of a bank, whether or not you would support this company. Discuss some of the items found in the current liability section.

  Managing liquidity and cash flows-valuation of liabilities

Indicate whether each of the following actions relates to (a) managing liquidity and cash flows, (b) recognition of liabilities, (c) valuation of liabilities, (d) classification of liabilities, or (e) disclosure of liabilities:

  Preparing a financial statement for may

Preparing a financial statement for May 31, 2019. There is a consistent mark-up of 200% on goods that are sold. I need to estimate the cost of inventory ending

  Data set with the mean and median close to begin equal

A data set with the mean and median close to begin equal will have a shape that is roughly symmetrical. Outliers are numbers that fall in the middle of the data set within one standard deviation of the mean. Variation is one of the most important con..

  A partnership began its first year of operations

A partnership began its first year of operations with the following capital balances: Young, Capital: $143,000 Eaton, Capital: $104,000 Thurman, Capital: $143,000 The Articles of Partnership stipulated that profits and losses be assigned in the follo..

  Find the futures price for contract maturity dates

Suppose that today is January 1, 2012. Assume the interest rate is 1% per year and a stock index currently at 1,200 pays a dividend yield of 2%. Find the futures price for contract maturity dates of February 14, 2012, May 21, 2012, and November 18, 2..

  Using process costing completed and transferred

A company using process costing completed and transferred 40,000 units of product to finished goods inventory. In addition to the transferred units, 15,000 additional units were in process 60% complete when the period ended. If total conversion costs..

  Demonstrate how do the employer payroll taxes

Demonstrate How do the employer payroll taxes? During January, Luxury Cruise Lines incur employee salaries of $1.7 million. Withholdings in January are $130,050

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