Question
In: Finance
Pukri Ltd is deciding whether to pay out R90 000 in excess cash in the form...
Pukri Ltd is deciding whether to pay out R90 000 in excess cash in the form of an extra
dividend or a share repurchase. Current profits are R2,40 per share and the share sells for
R20. The abbreviated balance sheet before paying out the dividend is:
Equity 240 000 Bank/cash 90 000
Debt 160 000 Other Assets 310 000
400 000 400 000
Evaluate each alternative (i.e: pay the dividend or repurchase the shares) by:
1.1 Calculating the number of shares in issue (4)
1.2 The dividends per share (for the first alternative, i.e. pay the dividend) (2)
1.3 Calculate:
1.3.1 The new share price (6)
1.3.2 The EPS (4)
1.3.3 The price-earnings ratio (4)
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jeff jeffy answered 1 year agoRelated Solutions
Pukri Ltd is deciding whether to pay out R90 000 in excess cash in the form...
Pukri Ltd is deciding whether to pay out R90 000 in excess cash
in the form of an extra dividend or a share repurchase. Current
profits are R2,40 per share and the share sells for R20. The
abbreviated balance sheet before paying out the dividend is: Equity
240 000 Bank/cash 90 000 Debt 160 000 Other Assets 310 000 400 000
400 000 Evaluate each alternative (i.e: pay the dividend or
repurchase the shares) by:
1.1 Calculating the number of...
Pukri Ltd is deciding whether to pay out R90 000 in excess cash in the form...
Pukri Ltd is deciding whether to pay out R90 000 in excess cash
in the form of an extradividend or a share repurchase. Current
profits are R2,40 per share and the share sells forR20. The
abbreviated balance sheet before paying out the dividend is:Equity
240 000 Bank/cash 90 000Debt 160 000Other Assets 310000400 000400
000Evaluate each alternative (i.e: pay the dividend or repurchase
the shares) by:1.1 Calculating the number of shares in issue (4)1.2
The dividends per share (for the...
QUESTION ONE Pukri Ltd is deciding whether to pay out R90 000 in excess cash in...
QUESTION ONE
Pukri Ltd is deciding whether to pay out R90 000 in excess cash in
the form of an extra dividend or a share repurchase. Current
profits are R2,40 per share and the share sells for
R20. The abbreviated balance sheet before paying out the dividend
is:
Equity:240 000 Bank/cash: 90 000
Debt: 160 000 Other Assets: 310 000
400 000 400 000
Evaluate each alternative (i.e: pay the dividend or repurchase the
shares) by:
1.1 Calculating the number of...
Pukri LTD is deciding whether to pay out R90 000 in excess in the form of an extra dividend or a share repurchase.
Pukri LTD is deciding whether
to pay out R90 000 in excess in the form of an extra dividend or a
share repurchase. Current profits are R2,40 per share and the share
sells for R20. The abbreviated balance sheet before paying out the
dividend isEquity 240 000
Bank/cash
90 000Debt 160 000
Other
Assests 310 000
400 000
400
000Evaluate each alternative
(I.e.: pay the dividend or repurchase the shares) by:Calculating the number of shares in issue1.2 The dividends per...
11.1.2 FINANCIAL MANAGEMENT [100] QUESTION ONE [20] Pukri Ltd is deciding whether to pay out R90...
11.1.2 FINANCIAL MANAGEMENT [100]
QUESTION ONE [20]
Pukri Ltd is deciding whether to pay out R90 000 in excess cash
in the form of an extra dividend or a share repurchase. Current
profits are R2,40 per share and the share sells for R20. The
abbreviated balance sheet before paying out the dividend is: Equity
240 000 Bank/cash 90 000 Debt 160 000 Other Assets 310 000 400 000
400 000 Evaluate each alternative (i.e: pay the dividend or
repurchase the...
Memory makers cc are deciding wether to pay R90 000 in accumulated cash in the form...
Memory makers cc are deciding wether to pay R90 000 in
accumulated cash in the form of an extra dividend to shareholders
or embark on a share repurchase scheme.Current profits are R3.40
per share and their shares currently trade for R35.
This is the abbreviated balance sheet before paying out the
dividend
Equity R350 000 BANK/CASH 130 000
DEBT R120 000 Other assets 340,000
= 470 000 =470 000
1.calculate the number of shares in issue
2. the dividends per...
Based on the following information: Net cash flow = R90 000 per year Useful life =...
Based on the following information:
Net cash flow = R90 000 per year
Useful life = 5 years
Cost of capital = 8%
Initial investment = R300 000 calculate the internal rate of
return (IRR) of the project.
(a) 0 %
(b) 15.24 %
(c) 8.00 %
(d) 12.36%
(d) None of the above
On 1 July 2018 Alto Ltd purchased land for $4 000 000, in cash. Alto Ltd...
On 1 July 2018 Alto Ltd purchased land for $4 000 000, in cash.
Alto Ltd uses the cost model to account for land.
On 1 July 2018 Alto Ltd purchased equipment for $1 000 000, in
cash. Alto Ltd uses the revaluation model to account for equipment
and depreciates the asset over its estimated useful life of 5 years
using the straight-line method. The disposal value at the end of 5
years was assessed as zero.
The following information...
On 1 July 2018 Mi Ltd issues $32 000 000 in five-year debentures that pay interest...
On 1 July 2018 Mi Ltd issues $32 000 000 in five-year debentures
that pay interest each six months at a coupon rate of 8 per cent.
At the time of issuing the securities, the market requires a rate
of return of 6 per cent. Interest expense is determined using the
effective-interest method.
Note: PV and Annuity tables are provided on the last page of
this document
REQUIRED
Determine the issue price.
Show the calculations in the table opening/closing values...
You are looking to take out a $53 ,000 loan to pay for school. The loan...
You are looking to take out a $53 ,000 loan to pay for school.
The loan would be a five-year loan. The lender offers you a 8 %
interest rate on the loan and also offers to structure it in one of
three ways: a) As a discount loan b) As an interest-only loan
c) As an amortized loan. Rounded to the nearest whole dollar,
what will be your balance at the end of year 1 if you take the...
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