Question
Please teach me how get those answer Thank you Par value of 12% preference share is $3. Market expectation is 14% from this preference share.
Please teach me how get those answer Thank you
Par value of 12% preference share is $3. Market expectation is 14% from this preference share. What would be the intrinsic value of this preference share?
Group of answer choices
A $3.50 A$2.57 A$3.06 A$3.00
Market is expecting 13 per cent return from the ordinary share of a company. Investors are expecting $0.70 dividend per share from this company in next year. It is also predicted that the dividend for this company will grow at a constant rate of 4 per cent forever. What current price is expected for this ordinary share?
Group of answer choices
A$8.09 A$7.78 A$17.50 A$8.79
A company issued $1,000 par value bond at 6% coupon rate. The bond will mature in 6 years. Current market yield for this bond is 7%. If the coupon is paid semi-annually, what would be the value of this bond?
Group of answer choices
A$973.36 A$951.68 A$952.33 A$682.29
Which one is a justifiable criticism of discounted payback period method of project evaluation?
1 Group of answer choices
2 Biased against the liquidity of the project
3 Does consider all future cash flows of the project
4 Biased against long-term projects
5 Ignores the time value of money
Which one is an incorrect statement?
1 Group of answer choices
2 Profitability index is a ratio of PV of Future Cash Flows and Investment
3 Profitability index ranking is better than NPV ranking in capital rationing
4 Profitability index value is always more than 1 for positive NPV projects
5 Ranking of projects by profitability index is similar to that of NPV
Which one is a correct statement?
1 Group of answer choices
2 None of the others
3 Preference share is known as perpetuity
4 No growth ordinary share dividend payment is similar to annuity
5 Share valuation is more uncertain than bond valuation
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