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FIN2601-25-S1
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The financial data of Flagship Pioneering show a profit for the year of R49 000 and a tax rate of 30%. If the company has an interest expense of R20 000, what is the company’s times interest earned ratio?
Denver Pavilions will pay an annual dividend of R1,46 a share next year, with future dividends increasing by 4,2% annually. What is the market rate of return, if the stock is currently selling for R38,90 a share?
Which one of the following would reduce the share price of a company?
Hot Donuts' ordinary shares are currently selling for R32,35 per share. The last annual dividend paid was R1,10 per share and the market rate of return is 10,7%. At what rate is the dividend growing?
Platinum Home paid an annual dividend of R1,15 per share last month. Today, the company announced that future dividends will be increasing by 2,6% annually. If you require a 12% rate of return, how much are you willing to pay to purchase one share of this company today?
You have just bought a share in a company that is expected to start paying dividends at the end of next year.
The expected dividends for the next three years are as follows:
Year
|
Dividend
|
1
|
R1,20
|
2
|
R1,89
|
3
|
R2,56
|
You expect to sell the share for R17,00 at the end of the three-year period. What is the share currently worth, assuming a required return of 13%?
Summer Time Adventures is going to pay an annual dividend of R2,86 a share on its ordinary share next year. This year, the company paid a dividend of R2,75 a share. The company adheres to a constant rate of growth dividend policy. What will one share of this ordinary share be worth five years from now if the rate of return is 11,7%?
The ordinary shares of AutoZone trade for R30,16 a share. The shares are expected to pay R2,25 per share next year when the annual dividend is distributed. The firm has established a pattern of increasing its dividends by 5% annually and expects to continue doing so. What is the market rate of return on this share?
Quick Space has an 8% coupon bond outstanding that matures in 12 years. The bond pays interest quarterly. What is the market price per bond if the par value is R1 000 and the yield to maturity is 8,69%?
An upward-sloping yield curve implies which of the following, according to the expectation theory?