Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Example of Market Model
Illustration:
For the past five (5) years, the MPS and DPS for XYZ Ltd were follows as:
1998
Shs.
1999
2000
2001
2002
MPS as at 31st Dec
DPS for the year
40
-
45
3
53
4
50
52
Required
Determine the estimated cost of equity/shareholders percentage yield for every of the years included.
Solution
Year MPS Capital gain DPS % Return 1998 40 - - - 1999 45 5 3 (5+3 /40) * 100 = (8/40) * 100 = 20% 2000 53 8 4 (8+4 /45) = (12/45) * 100 = 27% 2001 50 -3 3 (-3+3 /53) = (0/53) * 100 = 0% 2002 52 2 - (2 +0 /50) = (2/50) * 100 = 4%
Year
MPS
Capital gain
DPS
% Return
5
(5+3 /40) * 100 = (8/40) * 100 = 20%
8
(8+4 /45) = (12/45) * 100 = 27%
-3
(-3+3 /53) = (0/53) * 100 = 0%
2
(2 +0 /50) = (2/50) * 100 = 4%
How are earnings calculated for the Pe ratio?
Determine how much of a total loan payment applies towards principal and how much applies towards interest for a home mortgage of $177,219 with a fixed APR of 7.5% of 20 years
Acceptance Rule of IRR IRR will accept a venture if its IRR is higher than or equivalent to the minimum required rate of return such is usually the cost of finance also recogn
In order to value a debt security correctly, we must understand the terms and conditions of debt securities precisely. These terms define the contractual rights of the debt securit
Financial Instruments in Money Market or Discount Markets Financial Instruments in Money market involve as: 1. Commercial paper 2. Bills of exchange 3. Treasury bills
A bondholder buys a bond maturing in two years for Rs. 120 and earns Rs.15 per annum as interest. His YTM is ______ %.
The topic taken for this study is "FINANCIAL VIABILITY OF X BY APPLYING CREDIT SCORE MODEL". The study has attempted to analyze the financial viability of the company by applyi
evaluate the source of finance for a business project
Example of Quantity Discounts Consider illustration one and suppose that a quantity discount of 5 percent is given whether a minimum 200 units is ordered. Required Fin
XYZ is considering a capital restructuring to allow $300 million in debt. Currently, XYZ is an all-equity firm with earnings before interest and taxes of $260 million. Assume unlev
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd