Answered step by step
Verified Expert Solution
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:
- 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:
- 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:
- 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:
- 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
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started