Suy Sing Corporation,importer and distributor of Kikoman Soy Sauce has a net income of P 14 billion. BDO Capital informed the company that it can use the multiplier effect of 8 times to value itself. What is the price per share of the company if it has 3 billion shares? Group of answer choices a. P 8.71 per share b. P 22.67 per share c. P 45.33 per share d. None of the above

Suy Sing Corporation,importer and distributor of Kikoman Soy Sauce has a net income of P 14 billion. BDO Capital informed the company that it can use the multiplier effect of 8 times to value itself. What is the price per share of the company if it has 3 billion shares? Group of answer choices a. P 8.71 per share b. P 22.67 per share c. P 45.33 per share d. None of the above

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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pm.7
X Ltd is currently having 100000 equity shares of the face value of Rs 10 each. It is expected that company will have net profit of Rs 500000/. Due to recessionary condition, company expects 10% return on investment. The equity capitalization is 12%. Find out the market price per share according to Gordon Model under different payout ratios of 40%, 60% and 80%.
Helmuth Inc's latest net income was $1,500,000, and it had 225,000 shares outstanding. The company wants to pay out 45% of its income. What dividend per share should it declare? Do not round your intermediate calculations. O a. $2.31 O b. $3.24 O c. $3.00 O d. $2.28 Oe. $3.21
Telmax Inc. has adopted the policy of reinvesting 55% of its profits. The profitability of its assets is equal to 20%. The current dividend per share is 32% per face value of 1 ₺. Compute the intrinsic value of a share of this company for an investor whose minimum required rate of return is 24%.
kindly solve d part
The Royal Gold’s stock currently sells for RM 90 per share. The firm issued rights to raise new equity. To purchase a new share, a stockholder must remit RM 25 and four rights. (Tip: use ratio perspective to approximate the share of quantity.) (a) Calculate the price of one right.
Antiques 'R' Us is a mature manufacturing firm. The company just paid a dividend of $10.80, but management expects to reduce the payout by 5.25 percent per year, indefinitely. If you require a return of 9 percent on this stock, what will you pay for a share today? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
A1. Payout policy (Answer all parts of this question.) (a) , What is the main theorem of Modigliani and Miller regarding the payout policy of firms? Explain. 1 (b) List four assumptions that must hold for the Modigliani-Miller theorem to be valid. (c) Consider a company that has 100 million shares outstanding. The market value of the company is currently at GBP 5 billion. Last year, the company paid out an annual dividend of GBP 2 per share. This year, the company intends to double the dividend to shareholders, but since the company has not enough cash, the company intends to raise the additional money required to pay the dividend in rights issue. i. ( If the price of a new share offered is GBP 25, what is the fair value of a right to buy a new share? Hint: The company first pays the dividends, and then raises the capital. ii. ( ) Contrary to theory, however, as soon as the company announces the rights issue, the share price drops. Why? Think of a reason why this transaction, i.e.,…
Ee 156.
Transco is considering acquiring Tenco. Tenco's current stock price is $23. What is the maximum price per share that Transco should offer based on the following data for Tenco: PV of future cash flows $200 million, 20 million outstanding shares, no debt, and discount rate of 12%?
Andy has borrowed $370,000 on margin to buy Lowe`s Companies Inc., which is now trading at $203 per share. With this transaction, his initial percentage margin is 35%. His broker, Shannon, states, and Andy agrees, that the maintenance margin is 25%. Based on the given information, what is the equity value in account? A. $108,301 B. $147,621 C. $199,231 D. $232,650

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