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WorksheetsValuation of Shares
Total questions: 10
Worksheet time: 5mins
The following method are used for valuation of stocks except:
Income based
Asset based
Dividend based
All the above
The valuation of shares is necessary for both public and private companies because:
To know the performance of the shares traded at stock market
To know the value for the purpose of merger and acquisition
To know the value of the assets and liabilities
To know the value of share to be disposed when company liquidate
Identify the method used for valuation of business under earnings-based approach:
Dividend yield
Earnings per share
Price earnings ratio
Dividend growth
XYZ pays a constant dividend of RM0.45. It has 5,000,000 ordinary shares. The shareholders require a return of 10%. What is the value per share?
RM4.00
RM4.50
RM5.00
RM5.50
XYZ pays a constant dividend of RM0.45. It has 5,000,000 ordinary shares. The shareholders require a return of 10%. Determine the value of firm.
RM20.5 million
RM22.5 million
RM25.0 million
RM25.5 million
JKL Bhd has paid up share capital made up of RM1.00 per share for RM6 million
Dividend per share paid for the year 2020 is RM0.35
Dividend paid four years ago RM0.20
Required Return = 17%
Using the dividend valuation method.
Q6a. Calculate the dividend growth
15%
15.25%
15.5%
16%
Refer answer from Q6a.
JKL Bhd has paid up share capital made up of RM1.00 per share for RM6 million
Dividend per share paid for the year 2020 is RM0.35
Dividend paid four years ago RM0.20
Required Return = 17%
Using the dividend valuation.
Q6b. Calculate the value of firm
RM119 million
RM125 million
RM130 million
RM120 million
The following information relates to MNO Co.
RM’000
Revenue 4,000
COGS 3,000
Gross Profit 1,000
Operating Costs 500
Net Profit 500
Number of Shares 1,000
Share Price RM5.00
Industry P/E Average 10
What is the Value of the Company Using the P/E ratio calculation?
RM6m
RM5m
RM8m
RM7m
The industry average P/E ratio for the textile industry is 13. JKR Bhd, an unlisted textile company have an EPS of RM0.25 and 10.5 million paid up share capital. What is the value of the firm?
$34.13 million
$32.53 million
$25.37 million
$33.25 million
A business pays dividend RM0.25 per share this year that is expected to grow at 4% forever. Using the present value of future cash flows, determine the value per share if their cost of capital is 10%?
RM5.33
RM5.15
RM4.33
RM4.26
