Calculate the following: (a) Hark pic. paid 80 pence per share as dividend to its shareholders last year. The share price of Hark pic. was 500 pence at the end of last year. Given the arithmetic return of the share was 25% over last year. What was the share price at the beginning of last year? [5 marks]

(b) Mark pIc. Is proposing a "one-for-five" rights issue. The market price of the share IS expected to be 320 pence after the rights issue. What must be the discounted price of a newly issued share? Given the current market price of the share is 360 pence [5 marks]

(c) Calculate the present value of a 10-year ordinary annuity. Given the annual payment will start one year from now at 1,500 and market interest rate will remain at 5% [5 marks]

(d) A five-year saving account offers customers 2% annual interest rate. Mr Davies makes a deposit ot 2,500 in this saving account today, calculate the cash balance in his account five years from now. [5 marks]

(e) A financial claim offers annual payment of 500 in perpetuity to investors. If the current market price of this financial claim is 8,000, calculate the appropriate discount rate to this financial claim? Assuming this financial claim is priced fairly