Rusere Investments is a RSA based chain of department stores with operating assets of 1 billion...
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Rusere Investments is a RSA based chain of department stores with operating assets of 1 billion (Rands) in market value terms. Rusere Investments sponsors a defined-benefit pension plan (Pension Plan) that invests exclusively in domestic equities and domestic investment grade corporate bonds. Selected Rusere Investments and Pension Plan financial data are shown in Exhibit 1. Exhibit 1 Rusere Investments (excluding Pension Plan) Measure Debt to equity ratio (market value) Operating assets market value (Rands billion) Equity beta Debt beta Pension Plan Measure Equity portfolio beta Debt investments beta Market value (Rands million) Equity allocation (%) Surplus (Rands million) Value 0.6 1.0 1.9 0.0 Value 1.4 0.0 700 60 0.0 Rusere Investments is a RSA based chain of department stores with operating assets of 1 billion (Rands) in market value terms. Rusere Investments sponsors a defined-benefit pension plan (Pension Plan) that invests exclusively in domestic equities and domestic investment grade corporate bonds. Selected Rusere Investments and Pension Plan financial data are shown in Exhibit 1. Exhibit 1 Rusere Investments (excluding Pension Plan) Measure Debt to equity ratio (market value) Operating assets market value (Rands billion) Equity beta Debt beta Pension Plan Measure Equity portfolio beta Debt investments beta Market value (Rands million) Equity allocation (%) Surplus (Rands million) Value 0.6 1.0 1.9 0.0 Value 1.4 0.0 700 60 0.0
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Answer rating: 100% (QA)
a To calculate Rusere Investments total beta excluding the Pension Plans assets and liabilities Where Equity Beta 14 from Exhibit 1 Debt to Equity Ratio market value 06 from Exhibit 1 Tax Rate is not ... View the full answer
Related Book For
Financial Reporting and Analysis
ISBN: 978-0078025679
6th edition
Authors: Flawrence Revsine, Daniel Collins, Bruce, Mittelstaedt, Leon
Posted Date:
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