Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

kindly show your working, thank you b. The Zambian government has since January 2022 embarked on a massive pensions program in an attempt to reduce

image text in transcribed

image text in transcribed

kindly show your working, thank you

b. The Zambian government has since January 2022 embarked on a massive pensions program in an attempt to reduce the level of pension arrears. Mr Kalampa received his full terminal benefits is considering investing in the equity market by buying 2400 shares at the Lusaka Stock Exchange (LUSE) with an economic market return of 10.25 per cent in 2021. Final Dividend per share for the financial year ended 31 st December 2021 was approved by the Shareholders of CEC Zambia, Zambeef and ZAFFICO in accordance with the requirements of the Securities Act No. 41 of 2016 of the Laws of Zambia and the Listings Rules of the Lusaka Securities Exchange in which notice was given that the Final Dividend which was payable to shareholders registered in the Company's books at the close of business on Friday 29 th April, 2022 being the record date. The Dividend Per Share in 2020. CEC Zambia, Zambeef and ZAFFICO issued 412,234 shares, 345,101 shares and 409678 shares respectively. i. Explain the role that LUSE plays in the Money Markets in Zambia ii. Calculate the 2021 share prices for CEC Zambia, Zambeef and ZAFFICO. iii. Calculate the expected economic earning per share in the 2021 financial year that Mr Kalampa would anticipate. iv. Determine the economic incomes for CEC Zambia, Zambeef and ZAFFICO. v. Mr Kalampa further seeks to determine the future profitability of the shares for CEC Zambia, Zambeef and ZAFFICO in order to make his final decision of the company to invest in. Use the Price Earnings Ratio and advise Mr Kalampa the company to invest in. vi. Calculate Mr Kalampa's total dividend earning based on the company he was advised to invest in in (v) above

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Finance questions