a)Calculate the future value of £1,000 invested at a 7% per annum interest rate with daily compounding for 6 years.   b) The ordinary shares of Delta Ltd are quoted at £5.00 cum-dividend. A dividend of 30p is just about to be paid. The company has an annual accounting rate of return of 11%, and each year pays out 28% of its profits after tax as dividends. Calculate the cost of equity using the Dividend Valuation Model (DVM).   c) A gilt with a face value of £100 and 2 years to maturity pays a 6% annual coupon. It is quoted at a price of £99.09. What is its yield to maturity (YTM)?

Q: Maliban PLC just paid a dividend of Rs.5/= per share and it is expected to grow at a rate of 8% per…

A: Cost of equity means the rate of return expected by investor or we can say the rate of return. Cost…

Q: ares are 10,

A: Outstanding Share of the company is 10 Lakh Dividend per Share = 4.5 Per shares Total Dividend Paid…

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A: WACC(Weighted Avg. Cost of Capital) is average of  cost involved in financing whole capital…

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A: A distribution of earnings made by shareholders is known as a dividend. Dividends can be paid out as…

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A: Step 1:We have to calculate the current market price of the share. For this, we have to first…

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A: Solution:Dividend Discount Model (DDM) is the equity model which calculates the implied cost of…

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A: We will use Dividend discount model for calculation of value of share. In Dividend discount model,…

Q: Firm pay a dividend of $5.45 next year. annual growth rate is 3.25%. required return is 8.5%. what…

A: Expected stock price refers to the price which is used for valuing the projects and earnings for…

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Q: for the next 5 years. And after that it is assumed to have a g indefinitely. The dividend paid for…

A: The price of stock can be found from the constant dividend growth model of that depend on the…

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A: Here, Particulars Values Annual dividend (Year 0) $1.56 Growth rate for 4 years 9% No. of…

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A: in this we have to calculate value using constant dividend growth model.

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A: Expected Dividend = d1 = $4.82Growth Rate = g = 4%Current Price of Stock = p0 = $74Before Tax Cost…

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A: We will use the dividend discount model to calculate the share price at time t=0. Then we will…

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A: The weighted average cost of capital is the weighted average of the cost of equity, cost of debt and…

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A: In this we need to use constant growth model.

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A: The expected growth rate can be referred to as the return expected by the investors from an…

Q: the dividend yield and capital gain yield over the first year?

A: Information Provided: Dividend growth rate = 5% Next Dividend = $3.50 Required return = 13%

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A: “Since you have posted multiple questions, we will solve first question for you. If you want any…

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A: Dividend discount model is used for calculation of prices of stock based on the dividends paid and…

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A: Forward P/E ratio - It is used for valuation purpose and it is calculated by dividing the current…

Q: What is the company’s weighted average cost of capital (WACC) if all the equity used is from…

A: Weighted Average Cost of Capital is the summation of Weighted average of equity and debt in…

Q: Steady Company pays annual dividends and just paid a dividend of $1.00. You assume Steady Company’s…

A: Here,Current Dividend (D0) is $1.00Constant Growth Rate (g) is 15%Required Return (r) is 10%

Q: Net profit of Harper Holding Ltd in the current year is $3,546,000. The company is planning to…

A: Dividend refers to portion of total earnings of entity that is shared by an entity with its…

Q: A company is currently paying a divinded of Ksh 2.00 pr share. The dividend is expected to grow at a…

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Q: Frahill Co. Ltd plans to pay a dividend of $2.45 per share in the coming year and anticipates that…

A: Share is the security which is offered by the firm to arrange the funds. Share prices fluctuates…

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A: Current price (P0) = $5 D0 = $0.50 Growth rate (g) = 6% r = Expected return

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A: In the given case, we have provided the expected dividend per share for the Year 1  and thereafter…

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A: Given, current Profit  = 1200 next year profit = 1400 growth rate = (next year profit / current year…

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A: The dividend discount model is the technique that is used to compute the fair value of share price…

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A: Present value of growth opportunities is calculated using the current market price of stock and…

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A: The value of a stock can be determined using the Gordon Growth Model, which is a method for valuing…

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A: Plowback ratio also known as retention ratio is a financial metric that determines the relationship…

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A: The value of equity can be computed by deducting the value of debt from the value of the levered…

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A: The weighted average cost of capital (WACC) of a firm is a financial metric used to calculate the…