Answer:
Price per share = $78.75
Explanation:
<em>The Dividend Valuation Model is a technique used to value the worth of an asset. According to this model, the worth of an asset is the sum of the present values of its future cash flows discounted at the required rate of return.</em>
If dividend is expected to grow at a given rate , the value of a share is calculated using the formula below:
Price=Do (1+g)/(k-g)
Where Do- Dividend now, g- growth rate, k- required rate of return(cost of equity)
<em>Note Do (1+g) represents the expected dividend in the first year</em>
DATA:
Do (1+g) = 3.15
g= 8%
k= 12%
Price per share = 3.15/(0.12- 0.08) = $78.75
Price per share = $78.75
Answer:
The specialty or expertise of the financial institution
Their Management and Board composition
Their capital adequacy
Their performance
Explanation:
1) Specialty/Expertise:
Different financial institutions have their different area of strength/competence. Some are good in retail, some are good investment banking, some are good in deal making and consolidation etc. Depending on the purpose for which they are to be deployed, the area of their competence would matter most. E.g contracting a bank that is predominantly strong in retail banking to execute an M&A deal would not be ideal.
2) Management & Board composition:
The strength of a financial institution is as good as the quality of the people managing it. The expertise and know how of the management in key areas of business development, strategy, operations etc. will be vital for the growth of the financial institution
3) Capital adequacy
The adequacy of the capital structure of a financial institution is critical as it determines how much business and risk it can take on. By capital adequacy, we simply mean the ratio of its equity to debt. The less leverage its balance sheet is, the more business it can take on. This is critical if the volume of transaction one is about to transact with the financial institution is large.
4) Performance
The performance of a financial institution will show how efficient it is at generating returns and creating value to its shareholders and well as stakeholders. Every investor has an expectation of returns, a financial institution should be able to meet or exceed the market average for such performance yardstick as margin, ROI (return on investment), Return on Asset (ROA) etc
Answer: Code of accounts.
Explanation:
In project management, a code of accounts is a vital tool in managing any project because it makes it easier to differentiate numerous parts of a project without the need to remember terminologies or lengthy names.
A code of accounts is the unique numbering or lettering whereby letters or numbers are attached to each unique part of the project during the work breakdown structure (WBS) stage. The assigned numbers and letters should not be changed throughout the project's life cycle.
Answer:
Share of founder in the company will be 50 %
Explanation:
We have given Initial ownership pattern
Founder owns 100 % of the company
A new investor wants 30% and also option pool of 20% is also required
Now if the option pool is pre-money, then the option pool is created without impacting the desired investor ownership%;
Investor=30%
Option pool=20%
So founder = 100-30-20 = 50 %
So the share of founder in the company will be 50 %
Answer:
Loss= $5,000
Explanation:
Giving the following information:
Selling price= $50,000
Purchase price= $85,000
Accumulated depreciation= $30,000
<u>First, we need to calculate the book value:</u>
Book value= Purchase price - Accumulated depreciation
Book value= 85,000 - 30,000 = $55,000
<u>If the selling price is higher than the book value, the company gain from the sale.</u>
Gain/loss= selling price - book value
Gain/loss= 50,000 - 55,000
Loss= $5,000
