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G Pvt. Ltd. is a listed company; the company’s statement of financial position at 31 August 2020 showed the following long-term financing: $ (million) 1.2 million ordinary shares of $25 each 30 Reserves 55 85 9% loan stock 2022 30 On 31 August 2020 the shares were quoted at $ 121 cum div with a dividend of $ 5.2 per share due very shortly. Over recent years, a dividend has increased at the rate of about 5% a year. This rate expected to continue in the future. The loan stock is due to be redeemed at par on 31 August 2022. Interest is payable annually on 31 August. The post-tax cost of the loan stock is 5.5%. The co

G Pvt. Ltd. is a listed company; the company’s statement of financial position at 31 August 2020 showed the following long-term financing: $ (million) 1.2 million ordinary shares of $25 each 30 Reserves 55 85 9% loan stock 2022 30 On 31 August 2020 the shares were quoted at $ 121 cum div with a dividend of $ 5.2 per share due very shortly. Over recent years, a dividend has increased at the rate of about 5% a year. This rate expected to continue in the future. The loan stock is due to be redeemed at par on 31 August 2022. Interest is payable annually on 31 August. The post-tax cost of the loan stock is 5.5%. The co

Essentials Of Investments
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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KPMG Pvt. Ltd. is a listed company; the company’s statement of financial position at 31 August 2020 showed the following long-term financing: $ (million) 1.2 million ordinary shares of $25 each 30 Reserves 55 85 9% loan stock 2022 30 On 31 August 2020 the shares were quoted at $ 121 cum div with a dividend of $ 5.2 per share due very shortly. Over recent years, a dividend has increased at the rate of about 5% a year. This rate expected to continue in the future. The loan stock is due to be redeemed at par on 31 August 2022. Interest is payable annually on 31 August. The post-tax cost of the loan stock is 5.5%. The company’s corporation tax rate

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