Question: Analyse the information given in the table below and answer the questions below: Details Company A Company B Share price R60 R90 Number of ordinary
Analyse the information given in the table below and answer the questions below: Details Company A Company B Share price R60 R90 Number of ordinary shares issued 10 000 000 10 000 000 Market capitalisation 600 000 000 900 000 000 Annual earnings R90 000 000 R120 000 000 Earnings per share A B Price/ Earnings (P/ E) Ratio C D REQUIRED: Please note that all theoretical answers should be in your own words and not directly from your textbook or any other source. Remember to add a list of resources (correctly referenced according to the Harvard method) at the end of your assignment. Q.1.1 Calculate the missing amounts for A D. Round off your answers to 2 decimal places. (14) Q.1.2 Based on your answers for A and B above, state which company you would recommend to an investor and provide reasons for your answer. State which theory or principle the investor has to use in making his/her investment decision. List and explain five pitfalls of this principle or theory, in your own words. (13) Q.1.3 Based on your answers for C and D above, which company you would recommend to an investor. Provide reasons for your answer. (6) Q.1.4 Which of the two investments between the one chosen in Q.1.2 above and Q.1.3 above, maximises the goal of a firm? State this goal. (2) Q.1.5 List any four advantages and any six disadvantages of performancerelated reward schemes, in your own words. (
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