Reference no: EM133059214

Questions -

Q1. Vatukoula Gold Mines PLC (Fiji) is a geological exploration business in Western Fiji. Vatukoula has just made a rights issue at the rate of 1:5 and there were 10 million shares outstanding before the rights issue. The subscription price for the rights shares was $2.50 and the theoretical ex-rights price was $3.25. What was the market price before the rights issue?

A. $3.68

B. $3.40

C. $4.25

D. $4.75

Q2. Bake Rite Bakery specializes in making bagels to an original Jewish recipe, but adds distinctive Australian flavors such as wattle seed and lemon myrtle. Wattle seed is harvested seasonally from a number of species that produce edible seed. Bake Rite uses about 52 kg of seed a year and does not like to run out of supplies. Seed is packed in 100 g packets; there are no bulk packs. Additionally, seed must be kept refrigerated to retain the best flavor. Bake Rite estimates that order costs average $30 because often it takes an hour of an employee's time and several phone calls to different sellers to find supplies. Holding costs are also relatively high at $5 per 100 g due to the need for refrigeration. Given the circumstances, what is the Economic Order Quantity?

A. 75 packets

B. 79 packets

C. 87 packets

D. 82 packets

Q3. A company has 10 million issued ordinary shares and pays a dividend of 12 cents per share. If the company after tax profit was $2 million, what is the company's retention ratio (in %)?

A. 40%

B. 35%

C. 26%

D. 45%