Estimate the total rate of return, Financial Management

Assignment Help:

Question:

Explain:

(a) the advantages and disadvantages, to a company, of debt finance over equity finance;

(b) the reasons why a company may choose to issue preference shares rather than ordinary shares or debt;

(c) four factors that will be taken into account by a bank when deciding whether or not to lend money to a client.

(d) X ltd share price was 180 cts on January 2008 and 200 cts on 31 December 2008.During the year dividends of 15cts have been paid.

Required:

Estimate the total rate of return enjoyed by the shareholder during 2008.


Related Discussions:- Estimate the total rate of return

Payback period, Payback Period It is an amount of time, mainly measured...

Payback Period It is an amount of time, mainly measured in years; it takes previously the undiscounted cash inflows from a project equal the cash outflow. It indicates the leng

Conversion parity price, We defined the conversion premium as the dif...

We defined the conversion premium as the difference between the market price of the convertible and the conversion value. The conversion premium ratio tells us ab

Spreads, Spreads The difference between two futures price is referred to...

Spreads The difference between two futures price is referred to as ‘spread'. For the same underlying good, if there are two different prices on two different expiration dates, t

Agency policy theorem, How might management try to solve the problems foun...

How might management try to solve the problems found in agency theorem

Approximating the percentage price change using duration, Let us expr...

Let us express the process of calculating approximate percentage price change for a given change in yield and a given duration using the following formula:

Federal agency securities, Federal Agency Securities are those securi...

Federal Agency Securities are those securities issued by federally related institutions and those issued by Government-Sponsored Enterprises (GSE). Securities iss

Cost of capital, The Nu-Nu Brothers Inc. (NNBI) has the following capital s...

The Nu-Nu Brothers Inc. (NNBI) has the following capital structure, which it considers to be optional: Debt 25% Preferred Stock 15% Common Equity 60% NNBI''''s expected net income

Dividend policy, #questThe managing directors of three profitable listed co...

#questThe managing directors of three profitable listed companies discussed their companies'' dividend policies at a business lunch. Company A; has deliberately paid no dividends

Financial bootstrapping, Briefly describe the major differences between a s...

Briefly describe the major differences between a sole proprietorship and a corporation. Under which form would you choose for a business, and why? Describe the meaning of financi

The characteristics of the website development project, P Company manufactu...

P Company manufactures and sells a range of children's clothing through its retail shops and is currently designing a website in order to allow customers to purchase products onlin

Write Your Message!

Captcha
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