Corporate Finance Question 2022
Added on 2022-09-15
9 Pages1400 Words22 Views
Running head: CORPORATE FINANCE
Corporate Finance
Name of the Student:
Name of the University:
Author’s Note:
Corporate Finance
Name of the Student:
Name of the University:
Author’s Note:
1CORPORATE FINANCE
Table of Contents
Question 1..................................................................................................................................2
Question 2:.................................................................................................................................2
Question 3:.................................................................................................................................2
Question 4:.................................................................................................................................2
Question 5:.................................................................................................................................3
Par a:.......................................................................................................................................3
Part b:.....................................................................................................................................3
Part c:.....................................................................................................................................3
Part d:.....................................................................................................................................3
Question 6:.................................................................................................................................4
Question 7:.................................................................................................................................4
Part a:.....................................................................................................................................4
Part b:.....................................................................................................................................4
Part c:.....................................................................................................................................4
Question 8:.................................................................................................................................5
Question 9:.................................................................................................................................6
Part a (i):.................................................................................................................................6
Part a (ii):................................................................................................................................6
Part a (iii):..............................................................................................................................6
References..................................................................................................................................8
Table of Contents
Question 1..................................................................................................................................2
Question 2:.................................................................................................................................2
Question 3:.................................................................................................................................2
Question 4:.................................................................................................................................2
Question 5:.................................................................................................................................3
Par a:.......................................................................................................................................3
Part b:.....................................................................................................................................3
Part c:.....................................................................................................................................3
Part d:.....................................................................................................................................3
Question 6:.................................................................................................................................4
Question 7:.................................................................................................................................4
Part a:.....................................................................................................................................4
Part b:.....................................................................................................................................4
Part c:.....................................................................................................................................4
Question 8:.................................................................................................................................5
Question 9:.................................................................................................................................6
Part a (i):.................................................................................................................................6
Part a (ii):................................................................................................................................6
Part a (iii):..............................................................................................................................6
References..................................................................................................................................8
2CORPORATE FINANCE
Question 1
Answer: (d) None of a, b or c
Explanation: It can be observed that if the offer price or the strike price is £1.60 then the 20
million shares can be issued and the expected capital can be raised.
Question 2:
Answer: (c) 5.8%
Workings:
Total dividend = 2+1.5 = 3.5p
Current market price per share = 60p
Current dividend yield = 3.5/60 = 5.83%
Question 3:
Answer: (b) £13,800
Workings:
Cost of goods sold = opening stock + purchase – Closing stock = 3500+14500-4200 = 13800
Question 4:
Answer: (a) 2.75%
Workings:
Total savings = 4%+2% = 6%
Question 1
Answer: (d) None of a, b or c
Explanation: It can be observed that if the offer price or the strike price is £1.60 then the 20
million shares can be issued and the expected capital can be raised.
Question 2:
Answer: (c) 5.8%
Workings:
Total dividend = 2+1.5 = 3.5p
Current market price per share = 60p
Current dividend yield = 3.5/60 = 5.83%
Question 3:
Answer: (b) £13,800
Workings:
Cost of goods sold = opening stock + purchase – Closing stock = 3500+14500-4200 = 13800
Question 4:
Answer: (a) 2.75%
Workings:
Total savings = 4%+2% = 6%
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