User Account

All Pages

How much can she consume in september 2022

Assignment Help Finance Basics
Reference no: EM133000352

Ross River Ltd produces glass containers. In July 2021, the company reported net profits after tax of $500,000 for the financial year 2020 - 2021 and announced that it will pay the annual dividend on 1 September 2021. Due to increased demand the company expects the net profits after tax for the 2021 - 2022 financial year to be 20% higher. Ross River Ltd intends to maintain its current dividend payout ratio of 60% and expects to pay the annual dividend for 2021 - 2022 in 1 September, 2022.

Irina Stanton owns 10% of the ordinary share capital of Ross River Ltd. She has no savings and her sole income comes from Ross River Ltd. If Irina wishes to buy $5,000 worth of furniture in September 2021, and at the same time pay all her other bills totalling $35,000, calculate how much can she consume in September 2022. Assume the market rate of interest is 8% per annum.

Reference no: EM133000352

Questions Cloud

Find borrowing or insurance instrument : From each of your personal context ... pick up at least one 'past i.e., matured' investment or borrowing or insurance instrument and using excel sheet compute t
Construct a zero-investment portfolio : An arbitrage portfolio arises when two or more security prices enable investors to construct a zero-investment portfolio that will yield a positive expected ret
What is the expected ex-dividend share price : If the dividend is 20 cents per share, what is the expected ex-dividend share price?
What is crisp required return : An analyst has modeled the stock of Crisp Trucking using a two-factor APT model. The risk- free rate is 6%, the expected return on the first factor r1 is 12%, a
How much can she consume in september 2022 : Irina Stanton owns 10% of the ordinary share capital of Ross River Ltd. She has no savings and her sole income comes from Ross River Ltd. If Irina wishes to buy
Find investments with positive net present value : Would you be more likely to find investments with positive net present value on financial markets or on industrial markets? Why?
Calculate the standard deviation : The following data represent the number of appointments made per 15-minute interval by telephone solicitation for a lawn-care company. Assume these are populati
What is nec cost of common equity : Northwest Electric Company's (NEC) capital structure comprises of debt and common equity only in the proportion of 0.40 and 0.60 respectively. Cost of debt of N
Determine the correlation coefficient : ABC and XYZ companies have the following expected risk and return data for next year: expected return (ABC) = 18%; expected return (XYZ) = 22%; standard deviati

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd