The following information relates to X, Y, and Z as at 30 June 2021 Stock
Fantastic news! We've Found the answer you've been seeking!
Question:
The following information relates to X, Y, and Z as at 30 June 2021
Stock Share price Number of shares
X 10 2,000,000
Y 15 6,000,000
Z 20 10,000,000
During the year the following activities occurred;
A two for one stock split on Y
Payment of 10% dividend on Z. It can be assumed that the entire dividend paid will be reinvested in shares of Z limited.
On 30 June 2022 the stock prices of X, Y and Z were sh 12, sh 10 and sh 20 respectively.
Required;
- New index value given that the beginning value index is 100. (7 Marks)
- Explain how secondary markets benefit investors. (3 Marks)
- State and explain the main risks faced by financial institutions in the course of conduct of their business. (5 Marks)
Related Book For
Accounting Business Reporting For Decision Making
ISBN: 9780730302414
4th Edition
Authors: Jacqueline Birt, Keryn Chalmers, Albie Brooks, Suzanne Byrne, Judy Oliver
Posted Date: