Finance Management: Share Price, Dividend, Proposal Analysis

Running Head: FINANCE MANAGEMENT 1
FINANCE MANAGEMENT

Running Head: FINANCE MANAGEMENT
Table of Contents
Question 4..................................................................................................................................3
Question 5..................................................................................................................................3
Question 6..................................................................................................................................3
References..................................................................................................................................9

Running Head: FINANCE MANAGEMENT
Question 4
9/1/2019
Share price of Bond
Bond 1 $ 16.13745
Share price of Bond
Bond 2 $ 21.91781
Relative price movements 36%
The relative price movement as can be seen from the table is 36%.
Question 5
Particulars Workings
Dividend 1.44
Rate of return 12%
Growth Rate 5%
(D/(R-G))
Share Price of Sapphire Limited $20.57
The share price would be $20.57 in case of the dividends paid in such a manner for the
Sapphire Limited (Mugoša and Popović, 2015).
Question 6
In this section the proposal is analysed in case of the Bright Lighting Limited which is
considering a new range of the products based on the specific type of the intelligent stage.
Payback period 6.35
Net Present value $306058
Present value index 0.14
Discounted payback period 8.02
Internal Rate of return 16%