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np lol, gonna sleep, freekin test is too early, gl!

Q15) DIV(0) = $0.40 EPS = $2 ROE = 0.3 Now, g = (1- payout)*ROE ==> g = (1 - 0.4/2)*0.3 (payout ratio is just the fraction of dividends you pay from your earnings, ie dps/eps) ====> = 0.24 Q16) Price of div = [DIV(0)*(1+g)]/(1+ks) + .... (You know the div price formula) ===> = 0.4(1.24)/1.15...

Yeh, cos you need the right growth to get the right price. :x

EBIT = 2M D/V = 0.4, E/V = 0.6 T = 0.4 current shares outstanding = 1m shares current debt = 5m New Project: Capital Budget = $1.2m EBIT = 2M INT = 0.1*5m + 0.4*1.2*0.1 (Original debt interest + new interest where you finance 40% of it with debt) ==> = $0.548m therefore, NI = (EBIT - INT)(1-Tc)...

Nice, thnx! more questions to try lol

ok so D/V = 0.4, E/V = 0.5, P/V = 0.1 Rd = 0.11 Rp = 0.1111 Re = 0.1647 WACC = 0.123 therefore: 0.123 = 0.4(0.11)(1-Tc) + 0.1(0.1111) + 0.5(0.1647). ===> Tc = 0.3286 (B) Is this what u put in? maybe u might be mixing up percent/decimals

Im assuming you understand the other 2 parts so, NPV = -13m + 5.2m x PVIFA(10%,3) + 8.2m/1.1^4 + 6.9m/1.1^4 = 10.25m = D -13m is initial outlay, 5.2m is the cash flow from t=1 to t=3, and 8.2m is t=4 cash flow. the after tax salvage value is 6.9m which you receive at t=4 as well, so you have...

Ummm, because they use debt now they have interest payments, and the outstanding shares are less than before: Current shares outstanding = NI/EPS = $480m/$3.2 = 150m shares We know interest expense is 84m (given, or you can figure it out for yourself 0.07 x $1200m = $84m) Shares rebought = New...

yeh they are, Re = 2(1.08)/30(1-0.15) + 0.08 = 16.47% (flotation cost essentially reduces its value) same for preference shares ==> Rp = 2/20(1-0.1) = 11.11% you should end up with WACC = 12.3% And then just solve for Tax, end up with T = 32.86% (B)

slut

English (Advanced) Paper 1: Area of Study 15/10/2010 English (Advanced) Paper 2: Modules 18/10/2010 Mathematics 25/10/2010 Mathematics Extension 1 27/10/2010 Economics 02/11/2010 Chemistry 03/11/2010 Biology 05/11/2010 seems fair? last few exams...

my chem teacher is a real fob. cant understand him much. and he talks uber quiet. gotta sit at the front to actually understand him. hes pretty funny tho, in that fobby way x]

i know u mel :devil:

lol yeh names Timon, sorry late reply. havent been on bos in ages ;p anyway, ajmain failed to mention ur name. tc

if u make it to the interview, what do they usually talk bout? like.. more of ur studies/hsc, or co-curricular/life/ethics? both maybe? :o

the cookies r mad :o

what up dwayne

:o i believe in you ;)

Nope :D:D

ur yummy :)