Reference no: EM132993214
Question - You are working for an imports-exports company. In the current financial year, your company has a net income of $851,000 and plans to use a part of it as retained earnings for a new project which will cost $500,000 next year. The company's stock is currently listed and actively traded on ASX. Required:
a) Calculate the amount of net income available for the company to pay dividends to current shareholders if it maintains a capital structure of 46% in debt funding and 54% in equity funding, assuming residual dividend theory applies.
b) Your company is going to pay an annual dividend of $5 per share and extra dividend of $2 per share in 4 weeks. The standard process of settlement in ASX is T+2. If tomorrow is the ex-dividend date, when is the record date for dividend payment? Calculate the ex-dividend price if today's market price is $43.5, given the dividend tax rate is 13%.
c) Your company needs to make a payment of AUD 245,000 to a partner in Tokyo. If the direct quote of Japanese Yen in Sydney is 0.004782, how much Japanese Yen the partner in Tokyo will receive?
d) Your company has an extra cash of A$216 000. The AUD/USA exchange rate in New York is 0.77923. The USD/AUD rate in Sydney is 1.29135. Is there any arbitrage profit possible? Set up an arbitrage scheme with the extra cash, disregarding bid-ask spread. What is the potential gain in AUD dollar?
Crisis and risk management plan
: Identify possible areas of deficiency in a typical hospital, and provide a comprehensive crisis and risk mitigation plan that ensures quality care
|
Determine how much each class of stock should receive
: Assuming that the directors decide to declare total dividends in the amount of $ 399,000, determine how much each class of stock should receive
|
What is the cost of Job at the end of the month
: During the month, Jobs JB111 and JB115 were completed but not billed to customers. What is the cost of Job JB120 at the end of the month
|
Compute what should be the price of the bond
: If the current rate of interest on comparable debt is 8 percent, what should be the price of this bond? Assume that the bond pays interest annually.
|
What is the potential gain in AUD dollar
: Is there any arbitrage profit possible? Set up an arbitrage scheme with the extra cash, disregarding bid-ask spread. What is the potential gain in AUD dollar
|
What amount should be included in profit or loss
: What amount should be included in profit or loss in 20X9 in result of the reclassification on the equipment property, plant and equipment
|
Find what should be the price of the bond
: A $1,000 bond has a 5.5 percent coupon and matures after ten years. If current interest rates are 9 percent, what should be the price of the bond?
|
What should be the price of each bond
: What will be price of each bond if, after ten years have elapsed, interest rate is 5 percent? What should be price of each bond if interest rate is 8 percent.
|
Participating in developing a service program
: Describe 3 ways you would engage the target group in participating in developing a service program
|