Financial Management for Decision Makers 5th. Edition by Peter Atrill | 9780273717645 | 273717642 | Holooly

Financial Management

Financial Management for Decision Makers

270 SOLVED PROBLEMS

Question: 9.RQ.2

‘The business’s dividend decision is really a by-product of its capital investment decision.’ Discuss. ...

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The residual theory of dividends states that divid...

Question: 7.A.14

Assume that the market price per share in Wickham plc (see Example 7.2) before the bonus issue was £2.10. What will be the market price per share following the share issue? ...

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The business has made a one-for-two issue. A holde...

Question: 8.SE.5

Ashcroft plc, a family-controlled business, is considering raising additional funds to modernise its factory. The scheme is expected to cost £2.34 million and will increase annual operating profits (profits before interest and tax) from 1 January Year 4 by £0.6 million. A summarised statement of ...

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Ashcroft plc (a)

The earnings...

Question: 11.E.2

Aquarius plc has estimated the following free cash flows for its five-year planning period: ...

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There are a number of ways in which the accuracy o...

Question: 8.4

Avalon plc has ordinary shares in issue that have a current market price of £1.50. The dividend expected for next year is 20p per share and future dividends are expected to grow at a constant rate of 3 per cent a year. What is the cost of the ordinary shares to the business? ...

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The cost is:

K_{0 }=\frac{ D_{1}}{P_{0}}+ g...

Question: 6.10

Can you think which type of asset is often subject to a sale-and-leaseback arrangement? ...

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Property is often the asset subject to such an arr...

Question: 11.A.11

Centaur plc has five million shares in issue with a market value of £8.40 per share. The company has £14.2 million capital invested and for the most recent year, EVA® was £1.8 million. The required return from investors is 10 per cent a year.What is the percentage contribution to the market value ...

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Assuming no growth, PV of future

\text{EVA}...

Question: 11.S-A.1

Cupid plc produced the following balance sheet at the end of the third year of trading: Statement of financial position (balance sheet) as at the end of the third year of trading: An analysis of the underlying records reveals the following: 1 R&D costs relating to the development of a new product ...

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Adjusted net assets (capital invested) £m £m ...

Question: 12.SE.6

Larkin Conglomerates plc owns a subsidiary, Hughes Ltd, which sells office equipment.Recently, Larkin Conglomerates plc has been reconsidering its future strategy and has decided that Hughes Ltd should be sold off. The proposed divestment of Hughes Ltd has attracted considerable interest from ...

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Larkin Conglomerates plc (a) The value of an ordin...

Question: 12.ES.4

The directors of Simat plc have adopted a policy of expansion based on the acquisition of other businesses. The special projects division of Simat has been given the task of identifying suitable businesses for takeover. Stidwell Ltd has been identified as being a suitable business and negotiations between the board of directors of ...

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Simat plc (a) (i) Calculating the value per share ...

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