Given a 2 for 15 rights issue, a current market price of $13.50 and subscription price of $12, what is the theoretical rights price?

A.

$2.36

B.

$3.80

C.

$1.32

D.

$2.78

A company has 10 million issued ordinary shares and pays a dividend of 12 cents per share. If the company after tax profit was $2 million, what is the companys retention ratio (in %)?

A.

35%

B.

40%

C.

26%

D.

45%

Bake Rite Bakery specializes in making bagels to an original Jewish recipe, but adds distinctive Australian flavors such as wattle seed and lemon myrtle. Wattle seed is harvested seasonally from a number of species that produce edible seed. Bake Rite uses about 52 kg of seed a year and does not like to run out of supplies. Seed is packed in 100 g packets; there are no bulk packs. Additionally, seed must be kept refrigerated to retain the best flavor. Bake Rite estimates that order costs average $30 because often it takes an hour of an employees time and several phone calls to different sellers to find supplies. Holding costs are also relatively high at $5 per 100 g due to the need for refrigeration. Given the circumstances, what is the Economic Order Quantity?

A.

87 packets

B.

79 packets

C.

75 packets

D.

82 packets

Vatukoula Gold Mines PLC (Fiji) is a geological exploration business in Western Fiji. Vatukoula has just made a rights issue at the rate of 1:5 and there were 10 million shares outstanding before the rights issue. The subscription price for the rights shares was $2.50 and the theoretical ex-rights price was $3.25. What was the market price before the rights issue?

A.

$4.25

B.

$3.68

C.

$3.40

D.

$4.75

Over the twelve years a company annual dividend has averaged 21 cents per share (cps). On four occasions the annual dividend was less than the previous years dividend by the following amounts 3 cps, 9cps, 12 cps and 10 cps. What is the companys dividend instability index?

A.

0.162

B.

0.159

C.

0.178

D.

0.552