Fin Eco - 500 - Week 5

Limited liability is a main characteristic of ...?

• Sole proprietorship

• Partnership

• Corporations

• NGO

If bonds have a face value of $1,000 and coupon payment is 4% on the bond per annum, what is the value of coupon payment?

• 4

• 40

• 400

• 4000

If dividend is 5p, and growth is expected at 6% for 3 years, and 11% return is expected ; which of the following equations represent the present value of the equity?

If the value of free cash flow is $5m, and the value of debt is $2m and the value of preference shares are $1m, what is the value of equity?

• $8m

• $2m

• $10m

• $5m

Wolf co has an intrinsic value of £50 but a market value of £40, we can say that the shares are

• Under-priced

• Over-priced

• At fair value

• None of these

If the share price of Ayub Co is $0.4 each and the total number of shares are 500,000; what is the equity valuation of Ayub Co?

• $200,000

• $300,000

• $400,000

• $500,000

If the free cash flow for Chi Co in the 3rd year is 650,000, what will be the present value if the discount rate is 14%

• 650,000 * 1.14³

Which of the following are types of shareholders?

• Ordinary and Extra-ordinary

• Ordinary and Special

• Ordinary and preference

• Ordinary and important

The earnings from shares by investors is called?

• Capital

• Interests

• Coupon payments

• Dividends

Nadia Co has a dividend of 10p and rate of return of 10%, the dividend is expected to grow at 3% forever, what is the share price?