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z plc has dividend per share .30 ,p/E ratio 12 ,dividend cover 3
what is the market value of share ?
kindly with expainationDividend cover = earnings per share / dividend per share.
So earnings per share = 3 x 0.30 = 0.90
PE ratio = Market value per share / earnings per share.
So market value per share = 12 x 0.90 = $10.80.
thanks
but
B plc is to pay a dividend of .40 per share ,growth of dividend 5% .the shareholder return 20%
what is the current market value of share ?Why ‘but’ ??
Using the dividend growth formula from the formula sheet,
MV = (40 x 1.05) / (0.20 – 0.05) = 280c or $2.80However the formula gives an ex div MV. The question said that they are about to be a dividend and therefore we need the cum div MV which is 2.80 + 0.40 = $3.20
share capital 2000 ,500 8 % preference share
the profit for the year (after tax 30%) 420
what is EPS ?a project require investment 24000
and generate inflow of 5000 per 8 year
what is IRR?For the first question it is not clear what figures you are giving.
The earnings per share = (profit available for ordinary shareholders) / (number of ordinary shares)
The profit available for the ordinary shareholders = profit minus the preference dividend.
Second question:
The 8 year annuity discount factor at the IRR must be 24,000/5,000 = 4.8
If you look in the annuity d.f. tables along the 8 year row, the interest rate (IRR) giving the nearest to 4.800 is 13%
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