Company A's earnings declined significantly during the 2020 financial year during but will, according to an analyst's estimate, recover to R23.00 per share in 2021. In the past, Company A has been able to earn an average return on equity (ROE) of 20%. Company A is currently trading at R215.00 per share. You are provided with selected financial information from Company A's financial statements in the table below:

ITEM 2020 2020

Book value per share R57.50 R75.90

Earnings per share R10.00 R23.00

Dividends per share R0.00 R4.60

Dividend pay-out ratio N/A 20%

Growth rate in dividends N/A 16%

Cost of equity 17% 17%

Risk-free rate 10% 10%

P/E of competitors 22x 16x

1.1Calculate Company C's residual income for 2021. (1)

1.2Calculate the intrinsic value per share for Company A, using the single- stage constant-growth residual income model. (3)

1.3Calculate Company A's justified price-to-book value. (1)

1.4Calculate Company A's leading and trailing P/E ratios. (2)

1.5Evaluate Company A's valuation relative to its peers and intrinsic value. Motivate why a portfolio manager should or should not consider including Company A in an equity portfolio. (2)

1.6Based on the information in the table, how is Company A's earnings yield expected to change? Motivate your answer without performing any calculations. (1)

Use the following information to answer the next question. A saturated solution of silver chromate is prepared by adding excess of the compound to the solution. 15. Which of the following statements is always true for such a solution? A. The Ag+ is equal to the [Ag2 Cro4]. B. The Cro,2- ]is twice as much as the [ Ag*]. C. The rate of crystallization equals the rate of dissolution. D. The rate of crystallization is greater than the rate of dissolution.D Question 8 1 pts If the financial distress is temporary, it is called technical insolvency. If it is a permanent problem, it is called insolvency in bankruptcy. O True O False D Question 9 1 pts In U.S. bankruptcy law, Chapter 7 deals with business reorganization guidelines and Chapter 11 deals with liquidation procedures. O True O FalseAG for the dissolution of silver sulfite is 78.9 kJ/mole of silver sulfite at 298 K. Use this information to answer the questions below. Report numerical answers using 3 SF and the correct units, as appropriate. a. Calculate the value of Kap at 298 K. b. Write a balanced equation for the dissolution of solid silver sulfite in water. c. Calculate the concentration of silver ions present in a saturated solution of silver sulfite at 298K.C O extomheducation.com/rimipx Apps [ New Tab CamipeWhitney 1 Shared with Sydney c. Hough, Luck, and Cummings operate a local accounting firm as a partnership. After working together for several yours, they have decided to liquidate the partnership's property. The partners have prepared the folowing balance sheet 540 000 Liabison $ 30,000 Cash 30,000 Hough, loan 41000 Luck, loan 150,000 Noncash ajob 202 000 Hough, capital Luck, capital 241000 Cummings, capital 41 040 Total mascots $20 007000 Toil Habilrios and capital $283,000 Assume that the profits and losses are split 2:4:4 to Hough, Luck, and Cummings, respectively, and that quidation expenses are only $26,000. The firm sells the noncash assets for $100,000; All three of thong partners are personally insolvent. (Do not round intermediate calculations. ] Hough, Luck, Loan Cummings, Loan and and Capital Capital Capital Beginning balancing Lose on disposal Liquidation expenses Capital balances Allocation of Cummings' deficit balance Capital balances Allocation of Luck's deficit balance Final distribution d, Following the liquidation of all poncash astols, The parmership of Redmond, Ledbetter. Watson, and Sandridge has the following account balances Redmond, loan Rodmond, capital post 181 000) Ledbatter, social CION] Hutton, capital (30) 5000 Sandridge, capital MOT 35090 Redmond is personally intoivent Redmond, Loan and Ledbetter, Watson, Sandridge, Capital Capital Capital Capital Mlocation of Redmond's deficit balance Capital balances Contribution by Ledbuffer and Watson Final distribution Plotarences .Book & Resources Problem liquidation Lolming Objective: 15-01 Determine amounts to be puld to partner Type here to search e 9QUESTION 23 An overheating economy is one where O A. Workers' job performance lags due to slow changes in technology. O B. Actual real GDP is below the full employment level of GDP. O C. The full employment level of GDP is almost equal to actual real GDP. OD. Actual real GDP is above the full employment level of GDP. QUESTION 24 The long-run aggregate supply curve is A. Upward sloping because of the effects of price level changes on real GDP. O B. The same as the short-run aggregate supply curve. O C. Vertical at the full-employment level of real GDP. O D. Horizontal at the full employment price level