Forum Replies Created
- Posts
@faizan..your tips for passing F4 CBE?..BPP or Kaplan? how many times to practice from kit or other sources??
A company has just paid dividend of $0.23 per share.
Shareholders are expecting the dividend to remain at $0.23 per share next year, but to increase at an average rate of 3% per annum thereafter.
Shareholder required rate of return is 12%, and the rate of cooperation tax is 25%.What will be the current market value per share (to the nearest cent)?
A company has sales of $200M per year.
Currently customers take on average 40 days to pay.
The company is considering offering a discount of 1% for payment within 15 days and expects that 60% of customers will take advantage of the discount.
What is the effective annual cost of offering the discount?