d) You have been given the following data which refers to the performance of the Dar...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
d) You have been given the following data which refers to the performance of the Dar es Salaam DSE - share index and the two companies over two financial years DSE share index at the end of 2020 DSE share index at the end of 2021 Dividend yield on the market for 2021 4.55% Current redemption yield for Treasury bills 3.78% Mwanza Ltd (shs) Share price at 31 December 2020 Share price at 31st December 2021 Dividend for one year 3116.21 3711.94 Moshi Ltd (shs) 260 307 9 201 224 8 Equity beta 1.30 0.87 Using the data above, determine whether a diversified investor with shareholdings in the two companies will be satisfied with the returns they are receiving. (15 marks) d) You have been given the following data which refers to the performance of the Dar es Salaam DSE - share index and the two companies over two financial years DSE share index at the end of 2020 DSE share index at the end of 2021 Dividend yield on the market for 2021 4.55% Current redemption yield for Treasury bills 3.78% Mwanza Ltd (shs) Share price at 31 December 2020 Share price at 31st December 2021 Dividend for one year 3116.21 3711.94 Moshi Ltd (shs) 260 307 9 201 224 8 Equity beta 1.30 0.87 Using the data above, determine whether a diversified investor with shareholdings in the two companies will be satisfied with the returns they are receiving. (15 marks)
Expert Answer:
Answer rating: 100% (QA)
To determine whether a diversified investor with shareholdings in Mwanza Ltd and Moshi Ltd will be satisfied with the returns they are receiving we ne... View the full answer
Related Book For
Corporate Finance Principles and Practice
ISBN: 978-1292103037
7th edition
Authors: Denzil Watson, Antony Head
Posted Date:
Students also viewed these finance questions
-
1. A railroad car with a mass of 12,000 kg collides with another with a mass of 20,000 kg that is at rest initially and they couple after the collision. If the car that comes to collide initially has...
-
You are given the following data which refers to the performance of the FTSE 100 and two companies over the last financial year. FTSE 100 Index at the end of...
-
You have been given the following return data on 3 assetsF, G, and Hover the period 20152018. Using these assets, you have isolated 3 investment alternatives: Alternative Investment 1 ........ 100%...
-
The following scatter plot indicates that 200 150 > 100 50 0 0 20 X 40 O a log x transform may be useful Oa y transform may be useful a x transform may be useful Ono transform is needed Oa 1/x...
-
Take a look at Figure 16-3. Discuss a policy action that the Trading Desk at the Federal Reserve Bank of New York could undertake in order to bring about the increase in aggregate demand displayed in...
-
1. Record the following selected transactions for April in a two-column journal, identifying each entry by letter: (put letter into column of date, such as (a)) (a) Received $18,000 from Katie Long,...
-
You are the manager of internal audit for the Department of Transport, which is a major government department within your state. You have an internal audit staff of five professionals. Two are senior...
-
Three years ago. Karen Suez and her brother-in-law Reece Jones opened Glgasales Department Store. For the first 2 years, business was good, but the following condensed income statement results for...
-
Major League Bat Company manufactures baseball bats. In addition to its work in process inventories, the company maintains inventories of raw materials and finished goods. It uses raw materials as...
-
In a survey of 496 college students, it was determined that 356 owned an iPad. 293 owned a laptop. 285 owned a gaming system. 193 owned an iPad and a laptop. 200 owned an iPad and a gaming system....
-
Research two contemporary accounting topics, such as valuing intellectual capital and International Financial Reporting Standards (IFRS), and how these standards differ from Generally Accepted...
-
Describe and compare the four leadership styles of the pathgoal model of leadership.
-
Can college athletes use stress management to improve their performance?
-
How are BCF statements used?
-
What is meant by ownership of the problem?
-
Can management order the end of power and politics in the organization? Should it? Why or why not?
-
Costco, the wholesale corporation, is the company of my research. While preparing to review the statement of cash flows, I thought it was going to be the usual, "profit, profit, profit" that I have...
-
The graph of an equation is given. (a) Find the intercepts. (b) Indicate whether the graph is symmetric with respect to the x-axis, the y-axis, or the origin. -3 6 -6 3 x
-
It is 31 January 2016 and the managers of Dilbert are considering a change in the company's dividend policy. Earnings per share for 2015 for the company were 22.8p, and the finance director has said...
-
The ordinary shares of ZZZ are currently trading at 80p. The last dividend per share was 15p and its dividenads have been constant for ten years. The company plans to finance a new investment project...
-
Loring plc has paid the following dividends in recent years: The dividend for 20X5 has just been paid. The risk-free rate of return is 6 per cent and the market rate of return is 15 per cent. (a) If...
-
A new clerk has been hired at the company for which you work. You have been asked to explain the flow of materials from ordering through issuing to the factory. Required: Prepare a chart and a brief...
-
The following information is taken from the records of Cozart Company on July 31 of the current year. The accounts and balances needed to complete this problem are provided in the Working Papers. a....
-
Kingston Corp., a manufacturing company, uses the perpetual inventory method for all inventory accounts. Direct materials, direct labor, and applied overhead are recorded on cost sheets similar to...
Study smarter with the SolutionInn App