TC ==q? + 20q + 375Find break-even point when TR=TCAB Engineering Ltd. belongs to a risk class for which the capitalization rate is10%. It currently has outstanding 11,000 shares selling at $ 110 each. The firm iscontemplating the declaration of a dividend of $ 6/ share at the end of the currentTem 129.financial year. It expects to have a net income of $ 100,000 and has a proposal formaking new investments of $ 200,000. CALCULATE the value of the firms whendividends are not paidAB Engineering Ltd, belongs to a risk class for which the capitalization rate is130.

Capitalization rate (Ke)= 10% Outstanding shares (n)= 11,000 shares @$110 each (P0) Dividend to be…

AB Engineering Ltd. belongs to a risk class for which the capitalization rate is 10%. It currently has outstanding 11,000 shares selling at $ 110 each. The firm is contemplating the declaration of a dividend of $ 6/ share at the end of the current financial year. It expects to have a net income of $ 100,000 and has a proposal for making new investments of $ 200,000. CALCULATE the value of the firms when dividends are not paid 129.

AB Engineering Ltd. belongs to a risk class for which the capitalization rate is 10%. It currently has outstanding 11,000 shares selling at $ 110 each. The firm is contemplating the declaration of a dividend of $ 6/ share at the end of the current financial year. It expects to have a net income of $ 100,000 and has a proposal for making new investments of $ 200,000. CALCULATE the value of the firms when dividends are not paid 129.

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Question

TC ==q? + 20q + 375
Find break-even point when TR=TC
AB Engineering Ltd. belongs to a risk class for which the capitalization rate is
10%. It currently has outstanding 11,000 shares selling at $ 110 each. The firm is
contemplating the declaration of a dividend of $ 6/ share at the end of the current
Tem 129.
financial year. It expects to have a net income of $ 100,000 and has a proposal for
making new investments of $ 200,000. CALCULATE the value of the firms when
dividends are not paid
AB Engineering Ltd, belongs to a risk class for which the capitalization rate is
130.

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