Mr. Rafique Azizan had been appointed as finance director of Extreme Broadband Berhad. He is required to (а) advise the board of management on the investment plan to be taken. The choices are either in Asia Media Group Berhad or Astro Malaysia Holdings Berhad. The annual historical share prices for both companies are as follows: Date ASIA MEDIA ASTRO (0159) (6399) 31/12/2020 31/12/2019 6.75 4.48 6.55 4.21 31/12/2018 6.68 4.39 31/12/2017 31/12/2016 31/12/2015 6.94 4.22 6.63 4.15 6.56 4.41 Based on the coefficient of variation for Asia Media Group Berhad and Astro Malaysia Holdings Berhad, determine the preferable company that Mr Rafique Azizan should suggest to Extreme Broadband Berhad.

Mr. Rafique Azizan had been appointed as finance director of Extreme Broadband Berhad. He is required to (а) advise the board of management on the investment plan to be taken. The choices are either in Asia Media Group Berhad or Astro Malaysia Holdings Berhad. The annual historical share prices for both companies are as follows: Date ASIA MEDIA ASTRO (0159) (6399) 31/12/2020 31/12/2019 6.75 4.48 6.55 4.21 31/12/2018 6.68 4.39 31/12/2017 31/12/2016 31/12/2015 6.94 4.22 6.63 4.15 6.56 4.41 Based on the coefficient of variation for Asia Media Group Berhad and Astro Malaysia Holdings Berhad, determine the preferable company that Mr Rafique Azizan should suggest to Extreme Broadband Berhad.

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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1. (a) Mr.Shahrul Affendy had been appointed to lead the finance team of Extreme Broadband Corporation. The team is required to advise the board on the investment that should be undertaken. The annual historical share prices for Maxis and Telekom Malaysia Berhad (TLMM) are as follows: Date 31/12/2015 Maxis (RM) TLMM (RM) 5.32 3.82 31/12/2016 5.35 2.66 31/12/2017 31/12/2018 31/12/2019 6.01 6.30 5.98 5.95 6.78 6.80 As the leader for finance team, he is required to suggest on the preferable company to be invested based on the coefficient of variation for Maxis and Telekom Malaysia Berhad (TLMM).
At what amount should the investment be recorded initially? 2. On April 15, 2021, Pepper purchased 15,000 shares of Atty Group for P150,000. The commission paid to the broker amounted to P8,500. Management made an irrevocable choice to subsequently measure the shares at FVOCI. At what amount should the investment be recorded initially?
Required: i)Determine the gain for World Cruise Bhd. when it acquires Sunrise Cruise Bhd. (ii) World Cruise Bhd. is proposing to finance by cash the deal to purchase all of Sunrise Cruise Bhd.’s issued shares and is offering a premium of 25% over the market price of Sunrise Cruise Bhd.’s shares.Calculate the cost of acquisition of Sunrise Cruise Bhd. (iii) Suggest what should be recommended by Jack Pang to the Board of Directors on the proposed acquisition of Sunrise Cruise Bhd. and why Sunrise’s shareholders should accept the offer.
Required: (a)Assuming a rights issue of shares is made, calculate: (i)the theoretical ex-rights price of an ordinary share in Devonian plc (ii)the value of the rights for each original ordinary share. (b)Calculate the price of an ordinary share in Devonian plc in one year’s time assuming: (i)a rights issue is made (ii)a loan issue is made. Comment on your findings.
LL R You are considering a stock investment in one of two firms (LotsofDebt, Inc. and LotsofEquity, Inc.), both of which operate in the same industry, LotsofDebt, Inc. finances its $36.00 million in assets with $33.00 million in debt and $3.00 million in equity. LotsofEquity, Inc finances its $36.00 million in assets with $3.00 million in debt and $33..00 million in equity. Calculate the debt ratio. (Round your answers to 2 decimal places.) LotsofDebt, Inc. LotsofEquity. Ino Calculate the equity multiplier. (Round your answers to 2 declmal places.) Equity multiplier LotsofDebt, Inc. LotsofEquity. Ine. Calculate the debt-to-equity. (Round your answers to 2 declmal places.) Debt-to-equity LotsofDebt. Inc. LotsofEquity, Inc. Mc <. Prev MED Type here to search DOOH F2 F4 F5 F7 F10 F11 F12 PrtScr 8- & 23 24 2 ) 4. 5. 9. 7. 8. %3D } 1
(b) The owners' equity account for Rantuil Utilities Berhad are shown below: Common Share (RM2 par) Capital Surplus Retained earnings Total shareholder's equity RM30,000 RM285,000 RM648,100 RM963,100 If Rantuil Utilities Berhad currently sells for RM30 per share and a 10 percent share dividend is declared, i. Determine the number of new shares that will be distributed. ii. Reconstruct new owners' equity account for Rantuil Utilities Berhad.
Current Attempt in Progress Following is a list of investments owned by Kingbird Ltd., as of the company's year-end, December 31, 2023: Investment HFX Corporation FDY Ltd. CTN Corporation Date Jan. 15, 2024 No. Shares Cost 1,300 $8.15 2,500 4,100 On January 15, 2024, Kingbird sold the shares in CTN Corporation for $7.14 per share. Prepare the journal entries required to record the sale, assuming the company uses the fair value through other comprehensive income without recycling method. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.) FV-OCI Investments 7.26 6.23 Cash Account Titles and Explanation Unrealized Gain or Loss - OCI Fair Value $7.14 7.14 6.90 (To record adjustment to current fair value.) Retained Earnings FV-OCI Investments (To record the sale of shares.) Accumulated Other…
The directors of Nico Limited have appointed you as a merger and acquisition specialist. They are considering theacquisition of Maya Limited. You are to advise them whether or not to proceed with the project.The following information is available: Nico Limited Maya LimitedMarket price per share R400.00 R280.00Earnings per share R240.00 R120.00No. of shares issued 2 000 000 800 000 - Cash payment to Maya Limited = R78 million.- Synergy benefits of R30 million will accrue through the acquisition.- Maya Limited have just had their assets re-valued and the valuation has appreciated quite significantly. Calculate the post-acquisition increase/decrease price of the share Assume the acquisition is based on market values with a cash payment Calculate the post-acquisition earnings per share Assume the acquisition is based on earnings per share
World Enterprises is determined to acquire Intous Ltd through exchanging stocks. World Enterprises is offering R65 per share for Intous ltd. You are given the following information World Enterprises Intous Ltd Net Income R50 R10 Shares outstanding 5000 2000 Earnings per share R10 R5 Market price per share R150 Price earnings ratio R15 a. Calculate the number of shares to be issued by Intous Ltd: b. Calculate combined earnings per share of both World Enterprise and Intous Ltd c. Calculate price earnings ratio (P/E ratio) paid (Hint: use the R65 to calculate the P/E ratio) d. Compare the current and paid P / E ratios
You have been presented with the following set of financial statements for National Property Trust, a REIT that is about to make an initial stock offering to the public. This REIT specializes in the acquisition and management of warehouses. Your firm, Blue Street Advisors, is an investment management company that is considering the purchase of National Property Trust shares. You have been asked to prepare a financial analysis of the REIT. National Property Trust Panel A. Operating Statement Summary Net revenue $ 101,000,000 Less: Operating expenses 40,400,000 Depreciation and amortization 23,000,000 General and administrative expenses 6,100,000 Management expense 3,100,000 Income from operations 28,400,000 Less: Interest expense* 6,400,000 Net income (loss) $ 22,000,000 *At 8% interest only. Panel B. Balance Sheet Summary Assets Cash $ 51,600,000 Rents receivable 2,600,000 Properties @ cost 710,000,000 Less: Accumulated depreciation…
A Ltd is acquiring B Ltd and will pay consideration totally through shares. The financial data of both companies are given below : A LTD B LTD PROFITS 800000 300000 NO.OF EQUITY SHARES 400000 200000 EPS 2 1.5 P/E RATIO 12 7 Calculate the following: 1. Market price of each company share? 2. Market Capitalization of each company 3. Find out the Exchange Ratio(Swap Ratio)
For numbers 1 to 11, identify how much to add or deduct from the Investment in Associate account of ABC based on the following transactions or events: 1. Dec. 1, 2020 ‐ Bought 3,000 X Corp. shares at P200 per share. The total ordinary shares outstanding of X is 100,000 and each had a par value of P150. 2. Jan. 1, 2021 ‐ Bought an additional 15,000 shares of X Corp. for a total price of P3,800,000. The original shares are valued at P250 each. On the same date, ABC started providing essential technical information to X and that both corporations have an interchange of managerial personnel. Significant influence is established. There were no changes in the ordinary shares outstanding. 3. Net income reported for the year by the associate was P2,500,000. 4. Dividends declared by X is P2,000,000. It has 90,000 6%, P100‐par value preference shares outstanding which are cumulative and participating. No dividends were declared in the previous year. 5. As of Jan. 1, 2021, the fair value of the…

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