M Ltd is geared with leverage of 20%. Corporate net assets were £300,000. Calculate M'sshareholder funds.PROD£250,000£220,000£180,000£160,000J Ltd makes a 1:5 bonus issue entirely from its share premium account of £50,000.Revenue reserves were £60,000 at the time. Calculate J's net assets.ABOD£310,000£340,000£360,000£370,000G Ltd leased plant over five years making yearly payments of £25,000 in arrears. Annualinterest rates were 5%. Calculate the lease liability at the end of the first year.A) £103,237£108,237ABOD£119,237£134,237D Ltd made a 1:4 Rights Issue at £1.25 per share increasing its share capital to 50,000(£1nv). If pre-rights share prices were £1.50, calculate the post-rights share price.ABUDA) £1.32£1.38£1.45£1.48Z Ltd bought property for £200,000. After 10 years in business use it was revalued by£60,000. The building is depreciated at 4% per annum (straight line). Calculate annualdepreciation charges after the revaluation.A) £8,000ABOD£6,000£5,000£4,000

1.M Ltd's shareholder funds are calculated bydeducing debt from total assets ,where debt is 20% of…

Answered: M Ltd is geared with leverage of 20%.…

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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