A company issued 8.5% preference shares at R80 each. What is the intrinsic value of a preference share assuming a 6.5% required rate of return? ○ a. 94.12 b. R104.62 OC. R123.08 Od. R130.77
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- Ratio Analysis MJO Inc. has the following stockholders equity section of the balance sheet: On the balance sheet date, MJOs stock was selling for S25 per share. Required: Assuming MJOs dividend yield is 1%, what are the dividends per common share? Assuming MJOs dividend yield is 1% and its dividend payout is 20%, what is MJOs net income?Blackpink Co. has 5% preferred stock with a par value of P 100. Selling price is P 123.50 per share and flotation costs are P 0.50 per share. If tax rate is 20%, then what is the cost of preferred stock? ( Express you answer in percentage) * need it asap huhuYou have been provided with the following information for the year ended 30 June 2022 for ABCLtd:RNet profit for the year -R1 800 000Weighted average number of shares (WANOS) outstanding during the year-R 120 000Average fair value per share -R30.00Weighted average number of shares (WANOS) under option during the year -R25 000Exercise price for shares under option during the year -R28.00REQUIRED:Q.2.1 Explain the purpose and objective of disclosing diluted earnings per share.
- You are given the following information: ordinary shares, P80,000 (P80par); Share Premium-Ordinary, 200,000; and Retained Earnings, P400,000.Assuming only one class of share, the book value per share is? a.P280 b. P680 c. P80 d. P400The firm can sell 8% preferred stock at its R80 per share par value. Assume that the par value represents the price. The cost of issuing and selling the preferred stock is expected to be R7 per share. Firm is in 40% tax bracket. Determine the cost of preferred stock. A. 8.67% B. 8.77% C. 8.57% D. 8.76%The firm can sell 8% preferred stock at its R80 per share par value. Assume that the par value represents the price. The cost of issuing and selling the preferred stock is expected to be R7 per share. Firm is in 40% tax bracket. Determine the cost of preferred stock.
- MOL Company has P200,000 available to pay dividends. It has 12,000 10% preference shares (of which, 300 shares are in the treasury), P100 par and 50,000 ordinary shares with a par of P40. The preference share is selling for P125 and the ordinary share is selling at P50 per share. Required: Determine the amount of dividends and dividends per share to be paid to each class of share for each of the following independent assumptions. - Preference share capital is non-participating and non-cumulative. - Preference share capital is non-participating and cumulative. Preference dividends are two years in arrears at the beginning of the year. - Preference share capital is fully participating and cumulative. Preference dividends are one year in arrears at the beginning of the year. - Preference share…North Side Corp’s dividends for year 1, year 2, year 3, and expected share price for year 3 are: D1=$1.95, D2=$2.10, D3=$2.18, and P3=$95 respectively. What is the company’s current share price given the required return of 8 percent?Bosio Inc.'s perpetual preferred stock sells for $71.65 per share, and it pays an $6.03 annual dividend. What is the company's cost of preferred stock for use in calculating the WACC? Show 2 decimals in your answer. E.g . 9.99 %.
- A company has preferred stock that can be sold for $27per share. The preferred stock pays an annual dividend of $3.50based on a par value of $100. Flotation costs associated with the sale of preferred stock equal $1.10per share. Therefore, the cost of preferred stock isWhat will be the dividend of a preferred share that has a par value of $ 215.00 with a placement cost of 1.75% whose cost of preferred shares is 7.10%Venus, Inc. has an issue of 9% preferred stock outstanding which pays annual dividends. If this issue currently sells for $164.60 per share, what is the required return? Group of answer choices 5.47 percent 6.89 percent 7.70 percent 8.23 percent
