Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Question 6 (7 marks) You are working for an importer, which is listed and traded o ASX. Your company maintain a capital structure of 45%

Question 6 (7 marks)

You are working for an importer, which is listed and traded o ASX. Your company maintain a capital structure of 45% in equity funding and 55% of debt funding, which will be applied to a new project which will cost $750,000 next year. Your company has just announced an annual dividend of $3.5 per share. The record date for paying dividend is in three days. Required:

  1. When is the ex-dividend date if ASX standard settlement procedure is T+2? calculate the ex-dividend price if market price of the day before ex-dividend date is $78.5, given the dividend tax rate is 15%. (2 marks)

ANSWER:

  1. In the current financial year your company got a net income of $945,000. Calculate the amount of net income the company can use to pay dividends to current shareholders, assuming residual dividend theory applies. (2 marks)

ANSWER:

  1. Your company needs to make a payment of 2,135,000 yen to a partner in Tokyo. If the indirect quote of AUD/JPY in Sydney is 213.1288, how much Australian dollars you need for the payment? (1 mark)

ANSWER:

  1. Your company has an extra cash of A$315 000. The AUD/CHF exchange rate in is 0.692380 Zurich. The CHF/AUD rate in Sydney is 1.44894. Are arbitrage profits possible? Set up an arbitrage scheme with the extra cash. What is the potential gain in AUD dollar? (2 marks)

ANSWER:

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

More Books

Students also viewed these Accounting questions

Question

What is amy tan viewpoint about language

Answered: 1 week ago

Question

How do you add two harmonic motions having different frequencies?

Answered: 1 week ago