Explain the difference between preference share and ordinary share.
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(a) Brandon is considering three investments: bond, preference share and ordinary share. The bond has a RM1,000 par value, pays interest semi-annually at 11% and maturing in 8 years. Other bonds of the similar risk level are providing 10% rate of return. The bond is currently selling at RM1,250. Meanwhile, the preference share (RM100 par value) is selling for RM98 and pays an annual dividend of RM12.50. Brandon’s required rate of return is 14% for preference share and 20% for...
Exercise 11.6 Preference share Alternatives L.O. 5, 6 Walker Limited has the following capital structure: Preference shares— $25 par value, 10,000 shares authorized, 8,900 shares issued and outstanding Ordinary shares— 510 par value, 100,000 shares authorized 80,000 shares issue and outstanding $ 222,500 800,000 Total issued and fully paid capital Retained earnings $1,022,500 550,000 Total shareholders' equity $1,572,500 The number of issued and outstanding shares of both preference and ordinary shares have been the same for the last two years....
Explain the following; I. Issued Shares II. Preference Shares III. Ordinary Shares IV. Debentures
ASC had ordinary as well as preference shares. However, the preference shares are considered “callable”. The par value for the preference shares is $30 and the dividends is 3.25%. It is important to note that according to IFRS, callable preference shares (also known as mandatory redeemable preference shares) are treated as debt and not equity. This will have to be reflected in the statements that ASC has to produce for the listing on the ASX. Requirement : Provide the income...
What's the difference between MCO's and CDHP's? What's your preference and why?
Explain the difference between combinatorial components and sequential components. Latches share 2 properties explain what they are.
Capital market does not deal with which of the followings? Select one: a. Preference share b. Ordinary share c. Treasury Bills d. Debenture
Describe the process for the issue of ordinary shares and preference shares.?
SHARE VALUATION QUESTION 8 Tobias Limited has issued an unlimited number of non-redeemable preference shares with a par value of R100 each at a 4 percent (4%) discount. The preference dividend is 15 percent (15%) per year. Management expects that the earnings per ordinary share will show no growth over the next two years where-after it will grow at 6 percent (6%) infinitely. The most recent dividend per share is R2,00. The required rate of return of Tobias Limited is...
SHARE VALUATION QUESTION 8 Tobias Limited has issued an unlimited number of non-redeemable preference shares with a par value of R100 each at a 4 percent (4%) discount. The preference dividend is 15 percent (15%) per year. Management expects that the earnings per ordinary share will show no growth over the next two years where-after it will grow at 6 percent (6%) infinitely. The most recent dividend per share is R2,00. The required rate of return of Tobias Limited is...