Question 56

An entity has declared a dividend of $0.12 a share. The cum dividend market price of one equity share is
$1.40.
Assuming a dividend growth rate of 7% a year, what is the entity's cost of equity?
  • Question 57

    Information from the financial statements of RST for the year ended 30 April 20X9 is as follows:

    At 30 April 20X9 the ordinary shares are trading at $4.75.
    What is the price earnings (P/E) ratio for RST at 30 April 20X9?
  • Question 58

    Information from the financial statements of RST for the year ended 30 April 20X9 is as follows:

    At 30 April 20X9 the ordinary shares are trading at $4.75.
    What is the price earnings (P/E) ratio for RST at 30 April 20X9?
  • Question 59

    On 1 January 20X4 EF grants each of its 125 employees 500 share options on the condition that they remain in employment for 3 years. During the year to 31 December 20X4 10 employees left and It is expected that a further 25 will leave before the end of the vesting period.
    The fair value of each share option is $30 on 1 January 20X4 and $45 on 31 December 20X4.
    What is the journal entry in respect of these share options in EF's financial statements for the year ended 31 December 20X4?
  • Question 60

    Which of the following actions should XY's management take in order to reduce its investment in working capital?