Suppose Tonga at Limited predicts that earnings in the coming year will be N$43 million. There are 8 million shares, and the company maintains a debt-equity ratio of 0.90 Requirement: a) Calculate the maximum investment funds available without issuing new equity. (1 ...
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Niklaas Limited has a three-component capital structure: • It has a 10-year 5% bond that pays interest annually (par value of $100). The current yield on a 10-year riskless bond is 4%, and the credit risk of Niklaas is such that ...
Tekla Incorporated and Tongaat Limited are two identical firms except for their capital structure. Tekla Limited is an all equity company which is financed with N$600000 in ordinary shares. On the other hand, Tongaat Limited uses both equity and perpetual ...
A client is confused about two terms .on some certificate of deposit rates quoted at his bank in Namibia. You explain that the stated annual interest rate is an annual rate that does not take into account compounding within a ...
Suppose you are the eldest in your family and after your current studies, you will get a very nice paying job that allows you to send your brother to university in three years. You expect he will get a scholarship ...
A client planning for retirement has two options of saving: • A 30-year annuity at N$40 000 per year starting after one year or • A lump sum of N$600 000 today. If the client’s required rate of return on ...
Your younger sister will start a postgraduate degree in five years’ time. She has just informed your parents that she wants to go to Namibia Business School to study a postgraduate diploma in business administration or her next best alternative ...