List the main features of ordinary shares, Financial Management

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Question 1 Describe the types of investment decisions

Question 2 List the main features of ordinary shares

Question 3 List the assumptions of Walter's dividend model. Explain its criticism

Question 4 Discuss the concept of acquisition with the help of a suitable example

Question 5 A company has a total investment of Rs 500,000 in assets, and 50,000 outstanding ordinary shares at Rs 10 per share (par value). It earns a rate of 15 per cent on its investment, and has a policy of retaining 50 per cent of the earnings. If the appropriate discount rate of the firm is 10 per cent, determine the price of its share using Gordon's model. What shall happen to the price of the share if the company has a payout of 80 per cent or 20 per cent?


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