Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

plz ans 3 and 5 plz its short question Question 3 Not yet answered Marked out of 200 Fag question Mango LLC issued capital of

plz ans 3 and 5 plz its short question image text in transcribed
image text in transcribed
Question 3 Not yet answered Marked out of 200 Fag question Mango LLC issued capital of 9500 equity shares at a price of OMR 49 each. The company's before tax profits for the year 2020 amounting to 180,000. the present stock exchange price of the mango company's share is OMR 125. the Price/ Earning ratio of the three listed companies to be used for calculation. The applicable tax rate is 35% Company 2018 2019 2020 Banana LLC Mango LLC 5.9 7.5 Apple LLC 8.1 8.9 8.8 All the companies provided are operating in food processing industry. Find is the value of the share of Mango LLC based on its company average P/E. 6.4 3.3 4.8 7.7 OMR 133.14 OMR 86.53 OMR 95.80 OMR 83.95 Question 5 Not yet answered Marked out of 1.00 Mohammed trading company issued equity share has a beta of 0.6, while Safa foods company equity share has a beta of 1.1. both the companies operate in different countries. Mohammed trading company is registered in Saudi Arabia and Safa foods company is registered in Bahrain. The expected return on the market in Saudi Arabia is 15%, and the risk-free rate is 7% in Saudi Arabia. The expected return on the market in Bahrain is 12%, and the risk-free rate is same as in Saudi Arabia. Using the capital- asset pricing model and making use of the information above, find the cost of equity of Mohammed trading company and Safa foods company. Flag question 15.8% and 10.8 % 11.8% and 15.8 % 10.8% and 12.5% 11.8% and 12.5%

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored 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

Recommended Textbook for

Principles of Accounting

Authors: Needles, Powers, crosson

11th Edition

1439037744, 978-1133626985, 978-1439037744

More Books

Students also viewed these Accounting questions

Question

6.2 Explain the recruitment process.

Answered: 1 week ago