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提问人：网友zzwhgmxy 发布时间：2022-01-07

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Lane Co has in issue 3% convertible loan notes which are redeemable in five years’ time at

their nominal value of $100 per loan note. Alternatively, each loan note can be converted in five years’ time into 25 Lane Co ordinary shares.

The current share price of Lane Co is $3·60 per share and future share price growth is expected to be 5% per year.

The before-tax cost of debt of these loan notes is 10% and corporation tax is 30%. What is the current market value of a Lane Co convertible loan note？

A.$82·71

B.$73·47

C.$67·26

D.$94·20

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更多“Lane Co has in issue 3% convertible loan notes which are redeemable in five years’ time at”相关的问题

第1题

JJG Co is planning to raise $15 million of new finance for a major expansion of existing b

usiness and is considering a rights issue, a placing or an issue of bonds. The corporate objectives of JJG Co, as stated in its Annual Report, are to maximise the wealth of its shareholders and to achieve continuous growth in earnings per share. Recent financial information on JJG Co is as follows:

JJG Co is planning to raise 15 million of new fina

Required:

(a) Evaluate the financial performance of JJG Co, and analyse and discuss the extent to which the company has achieved its stated corporate objectives of:

(i) maximising the wealth of its shareholders;

(ii) achieving continuous growth in earnings per share.

Note: up to 7 marks are available for financial analysis.(12 marks)

(b) If the new finance is raised via a rights issue at $7·50 per share and the major expansion of business has

not yet begun, calculate and comment on the effect of the rights issue on:

(i) the share price of JJG Co;

(ii) the earnings per share of the company; and

(iii) the debt/equity ratio. (6 marks)

(c) Analyse and discuss the relative merits of a rights issue, a placing and an issue of bonds as ways of raising the finance for the expansion. (7 marks)

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第2题

During the year ABC Co has seen its ROCE decrease from 16% to 13%. Which of the following statements describes why this decrease in ROCE may have occurred？

A、Made a bonus issue of shares.

B、Revalued its property, plant and equipment upwards.

C、Paid a dividend to its shareholders.

D、Repaid part of a long-term bank loan.

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第3题

Drumlin Co has $5m of $0·50 nominal value ordinary shares in issue. It recently announced

a 1 for 4 rights issue at $6 per share. Its share price on the announcement of the rights issue was $8 per share.

What is the theoretical value of a right per existing share？

A.$1·60

B.$0·40

C.$0·50

D.$1·50

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第4题

In the year to 31 December 20X9 Weston Co pays an interim equity dividend of 3.4c per shar

e and declares a final equity dividend of 11.1c. It has 5 million $1 shares in issue and the ex div share price is $3.50.What is the dividend yield？

A、4%

B、24%

C、3.2%

D、4.1%

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第5题

Aqua Co has correctly calculated its basic earning...

Aqua Co has correctly calculated its basic earnings per share (EPS) for the current year.Which of the following items need to be additionally considered when calculating the diluted EPS of Aqua Co for the year？ (i)A1 for 5 rights issue of equity shares during the year at $1.20 when the market price of the equity shares was $2.00 (ii)The issue during the year of a convertible (to equity shares) loan note (iii)The granting during the year of directors' share options exercisable in three years' time (iv)Equity shares issued during the year as the purchase consideration for the acquisition of a new subsidiary company

A、All four

B、(i) and (ii) only

C、(ii) and (iii) only

D、(iii) and (iv) only

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第6题

The following financial information relates to MFZ Co, a listed company:MFZ Co has 12 mill

The following financial information relates to MFZ Co, a listed company:

The following financial information relates to MFZ

MFZ Co has 12 million ordinary shares in issue and has not issued any new shares in the period under review. The company is financed entirely by equity, and is considering investing $9·2 million of new finance in order to expand existing business operations. This new finance could be either long-term debt finance or new equity via a rights issue. The rights issue price would be at a 20% discount to the current share price. Issue costs of $200,000 would have to be met from the cash raised, whether the new finance was equity or debt.

The annual report of MFZ Co states that the company has three financial objectives:

Objective 1: To achieve growth in profit before interest and tax of 4% per year

Objective 2: To achieve growth in earnings per share of 3·5% per year

Objective 3: To achieve total shareholder return of 5% per year

MFZ Co has a cost of equity of 12% per year.

Required:

(a) Analyse and discuss the extent to which MFZ Co has achieved each of its stated objectives. (7 marks)

(b) Calculate the total equity market value of MFZ Co for 2014 using the dividend growth model and briefly discuss why the dividend growth model value may differ from the current equity market value. (5 marks)

(d) Discuss the sources and characteristics of long-term debt finance which may be available to MFZ Co. (8 marks)

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第7题

The statement of financial position of R Co includes a material amount of $200,000 in resp

ect of costs capitalized in the year as development expenditure. The auditor has concluded that these costs are research expenditure. If the auditor is to issue an unmodified opinion which financial statements will require adjustment？

A、Statement of financial position only

B、Statement of profit or loss only

C、Statement of financial position and statement of profit or loss

D、Neither the statement of financial position nor the statement of profit or loss

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第8题

“Slow Lane is Safest on Currency Issue” In this English news headline, which rhetorical device is adopted？

A.personification

B.parody

C.pun

D.metaphor

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第9题

Japanese Car Keeps Watch for Drunk Drivers

？？ Aconcept car developed by Japanese company Nissan has a breathalyzer-likedetection system and other instruments that could help keep drunk or over tireddrivers off the road.？？

？？ Thecar's sensors check odors inside the car and monitor a driver's sweat fortraces of alcohol. An in-car computer system can issue an alert or even lock upthe ignition system if the driver seems over- the-limit. The air odor sensorsare fixed firmly and deeply in the driver and passenger seats,while a de-tector in the gear-shift knob measures perspiration from the driver's palm.？？

？？ Othercarmakers have developed similar detection systems. For example,Sweden's Volvohas de- veloped a breathalyzer attached to a car's seat belt that drivers mustblow into before the engine will start？？

？？ Nissan'snew concept vehicle also includes a dashboard-mounted camera that tracks adrivers alertness by monitoring their eyes. It will sound an alarm and issue aspoken warning in Japanese or English if it judges that the driver needs topull over and rest.？？

？？ The cartechnology is still in development, but general manager Kazuhiro Doi says thecombination of different detection systems should improve the overalleffectiveness of the technology. "For exam- ple,if the gear-shift sensorwas bypassed by a passenger using it instead of the driver,the facial recog-nition system would still be used," Doi says. Nissan has no specifictimetable for marketing the sys- tem, but aims to use technology to cut thenumber of fatalities involving its vehicles to half 1995 levels by 2015.？？

？？ Thecar's seat belt can also tighten if drowsiness is detected, while an externalcamera checks that the car is keeping to its lane properly. However,Doi admits that some of thetechnology,such as the alcohol odor sen- sor,should be improved "If you drink one beer,it's going toregister, so we need to study what's the appropri- ate level for the system toactivate," he says？？

？？ In th？？e UK,someresearch groups are using similar advanced techniques to understand driverbe-havior and the effectiveness of different road designs.？？

？？Which of the following statements is NOTtrue of the Japanese concept care？？？？

A.It has a sensor system that could issue a warning if the driver is drunk

B.It has sensors that detect traces of alcohol inside the car

C.It has sensors locked up in the ignition system

D.It has a breathalyzer-like detection system

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第10题

The following scenario relates to questions 6 to 10.Ring Co has in issue ordinary shares w

The following scenario relates to questions 6 to 10.

Ring Co has in issue ordinary shares with a nominal value of $0·25 per share. These shares are traded on an efficient capital market. It is now 20X6 and the company has just paid a dividend of $0·450 per share. Recent dividends of the company are as follows:

The following scenario relates to questions 6 to 1

Ring Co also has in issue loan notes which are redeemable in seven years’ time at their nominal value of $100 per loan note and which pay interest of 6% per year.

The finance director of Ring Co wishes to determine the value of the company.

Ring Co has a cost of equity of 10% per year and a before-tax cost of debt of 4% per year. The company pays corporation tax of 25% per year.

Using the dividend growth model, what is the market value of each ordinary share？

A.$8·59

B.$9·00

C.$9·45

D.$7·77

What is the market value of each loan note？A.$109·34

B.$112·01

C.$116·57

D.$118·68

The finance director of Ring Co has been advised to calculate the net asset value (NAV) of the company.

Which of the following formulae calculates correctly the NAV of Ring Co？

A.Total assets less current liabilities

B.Non-current assets plus net current assets

C.Non-current assets plus current assets less total liabilities

D.Non-current assets less net current assets less non-current liabilities

Which of the following statements about valuation methods is true？A.The earnings yield method multiplies earnings by the earnings yield

B.The equity market value is number of shares multiplied by share price, plus the market value of debt

C.The dividend valuation model makes the unreasonable assumption that average dividend growth is constant

D.The price/earnings ratio method divides earnings by the price/earnings ratio

Which of the following statements about capital market efficiency is/are correct？

(1) Insider information cannot be used to make abnormal gains in a strong form. efficient capital market

(2) In a weak form. efficient capital market, Ring Co’s share price reacts to new information the day after it is announced

(3) Ring Co’s share price reacts quickly and accurately to newly-released information in a semi-strong form. efficient capital market

A.1 and 2 only

B.1 and 3 only

C.3 only

D.1, 2 and 3

请帮忙给出每个问题的正确答案和分析，谢谢！

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