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Solve the following attachments FINANCIAL MARKETS REVIS 7) Distinguish between the terms coin div and ex - div as used in financial markets. JUNE 2009

Solve the following attachments

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FINANCIAL MARKETS REVIS 7) Distinguish between the terms "coin div" and "ex - div" as used in financial markets. JUNE 2009 QUESTION ONE, QUESTION 10 a) Explain the main factors behind the rapid development of capital markets in your country. VE A DECEMBER 2006 QUESTION SIX QUESTION 11 a ) Discuss the role of a capital markets authority in the development of a country's financial markets six QUEST ets QUESTION 12 a) Describe the benefits to a country of integrating its financial markets with those of other country. QUESTION 13 (b) a) Distinguish between primary and secondary securities market. b) "Despite the large investment in the stock exchange and the various government incentives, only a few companies are listed at the stock exchange of the three East Africa Countries", This was the opening remark by the guest speaker in a seminar whose theme was "Developing our capital market." Required: i) The advantage of being listed at the stock exchange. ii) Highlight four factors that may hinder companies from being listed at the stock exchange. QUESTION 14 a) Briefly explain how the "Dow theory " views the movement of the market prices of shares traded on a stock exchange b) Identify and briefly explain the factors that must be taken into account in the design and construction of a market index for shares c) Joseph Kimeu is trying to determine the value of Bidii Ltd's ordinary shares. The earnings growth rate over his planned six-year holding period is estimated to be 10% and the dividend payout ration in 60%. The ending price earnings (P/E) ration is expected to be 20 and the current earning per share are Sh. 4. The required rate of return for this share is 15%. Required Compute the market price of Bidii Lid's ordinary share QUESTION 15 b) Briefly describe the three forms of capital markets efficiency. are familiar with. Highlight four factors that may underlie the low rate of listing of companies in a stock exchange you QUESTION 16 (a) Highlight four advantages and disadvantages to a company of being listed on a stock exchange. (b) In relation to the stock exchange" Section 3 F.MMARKETS ") Distinguish between the terms "cum div" and "ex - div" as used in financial markets QUESTION 10 JUNE 2009 QUESTION ONE. ) Explain the main factors behind the rapid development of capital markets in your country QUESTION 11 a) DECEMBER 2006 QUESTIONS Discuss the role of a capital markets authority in the development of a country's financial my QUESTION 12 SIX a) Describe the benefits to a country of integrating its financial markets with those of other country QUESTION 13 a) Distinguish between primary and secondary securities market. b) "Despite the large investment in the stock exchange and the various government incentives, only few companies are listed at the stock exchange of the three East Africa Countries" . This was the opening remark by the guest speaker in a seminar whose theme was "Developing our capital market." Required: i) The advantage of being listed at the stock exchange. ii) Highlight four factors that may hinder companies from being listed at the stock exchange. QUESTION 14 a) Briefly explain how the "Dow theory " views the movement of the market prices of shares traded on a stock exchange b) Identify and briefly explain the factors that must be taken into account in the design and construction of a market index for shares c) Joseph Kimeu is trying to determine the value of Bidii Ltd's ordinary shares. The earnings growth rate over his planned six-year holding period is estimated to be 10% and the dividend payout ration in 60%. The ending price earnings (P/E) ration is expected to be 20 and the current earning per share are Sh. 4. The required rate of return for this share is 15%. Required Compute the market price of Bidii Ltd's ordinary share QUESTION 15 a) Briefly describe the three forms of capital markets efficiency, b) Highlight four factors that may underlie the low rate of listing of companies in a stock exchange you are familiar with. QUESTION 16 (a) Highlight four advantages and disadvantages to a company of being listed on a stock exchange (b) In relation to the stock exchange" Section 3 F.MREVISION PART SOURCES OF FUNDS FOR ORGANISATIONS REV QUESTION I December 2008. a) The following information was extracted from the accounting records of Karibu Lid. Asaty QUI Sh. "000"" Total assets 2,400,060 Accounts payable 750,000 Sales revenue (year ended 31 December 2008) 5,000,000 Ordinary share capital 850,000 Retained earnings 50,000 Sales revenue for the year ending 31 December 2009 is expected to increase by 25% . Total assets and accounts payable are proportional to sales and that relationship will be maintained in future. The company raised sh. 150 million by floating new ordinary shares on I January 2009. The company's profit margin on sales is 6 percent. 60 per cent of the earnings attributable to ordinary shareholders will be paid out as dividends. Required: i ) Total debt for Karibu Led. as at 31 December 2008. The new long term - debt financing that ill be needed in the year 2009. AUGUST 2009 PILOT PAPER QUESTION TIVOA QUESTION 2 a) Explain four reasons that may drive a company to raise equity finance rather than debt finance. DECEMBER 2007 QUESTION TWOA QUESTION 3 Bidii Ltd expects a return on investment (ROD) of 24 % on proposed investment projects whose total cost is 5,000,000. In order to finance these investment projects the company is considering two options. Option one Issue 500,000 ordinary shares at a par value of sh. 10 each. Option two Issue 250,000 ordinary shares at a par value of sh. 10 each and obtain the balance through a bank loan at in interest rate of 15% per annum. The rate of corporation tax is 30% Required: Determine the effect of the two financing options on the earnings available to shareholders and hence advise the company on the best financing option. JUNE 2007 UESTION FOUR C QUESTION 4 b) Explain the factors that influence the type of finance sought by a manufacturing company section 3 F.M

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