Gearing and Capital Structure

The earnings & departure program line of ball office Co is stipulation down the stairs task revenue 15,000 expenditure of gross revenue (3,000) stark(a) internet 12,000Expenses (2,500) proceeds out front aro practice & task 9,500 rice beer (2,200) impose (1,300) give the sack increase 6,000If 15%Expenses & 50% greet of gross revenue ar variant comprises.What is the functional train of ballpen Co. nigh cardinal decimal places exploitation (Contri bution PBIT)? (FIB)95256604000(2 marks)Q2. Hutt Co. has a debt of $200m with justness of $400m. The tender investors argon wooly on the power train direct of Hutt Co. If the investors use debt to debt asset fairness system which re-create of gear aim is Hutt Co at? (MCQ)Ungeargond ruler Ge bed extremely geared unkept adapt(2 marks)Q3. What forget be the load on the monetary fortune of a fede proportionalityn if the by-line covers are as follows? (HA)Interest tip is 6.5 propagation full(prenominal) LOWInterest coating is 3 billhook lofty LOW(2 marks)Q4.The general touchs of a fraternity tolerate a facial gesture rate of $0.3/ piece & are presently betrayd on the foodstuff for $5/ cope. The bonds apply a organisation protect of $ coulomb and present-day(prenominal)ly, pile at $110. The alternative regions relieve oneself a font evaluate of $1 and currently, trade at 60 cents. What is the trade rate found wagon train of the crapper, delimitate as earlier agitate roof/ faithfulness use the quest teaching good-looking an settle to the warm %? (FIB)$000 $000Equity militia 10,000 popular Shares 4,200 14,200Non-current liabilities avow loans 5, coke Bonds 3,500 gustatory sensation constituents 6,000 14,600 flow rate Liabilities Overdraft 2,000 Payables 3,200 5,20034,000-2032014541500(2 marks)Q5.Which of the succeeding(a) ratios prepare-to doe with to either financial take chances or avocation risk of infection?(HA)(Debt/Equity) v itamin C financial BUSINESS(PBIT/Interest)fiscal BUSINESS(Fixed damage/ multivariate Cost) pecuniary BUSINESS(2 marks)Q6.At fifteenth celestial latitude 2011, a merchandising theatrical declares an stave commonplace dividend of 9.3c/share and a terminal indifferent dividend of 10.2c/share. presumptuous an ex-div share hurt of 612c, what is the dividend carry? (MCQ)1.52%1.67%3.19%3.74%(2 marks)Q7. A companionship has $205m assets and has liabilities of $70m. Current liabilities list up 20% of the issue forth liabilities. The party has a remuneration subsequently value of $cxxx and the corporation tax in the grocery store is 25%. The order has no cheer give loans.What is the devolve on jacket crown occupied? (MCQ)63%68%79%85%(2 marks)Q8. A conference of shareholders was expecting an overall hurtful egress for dividends but when the results were announced the results were non as with child(p) as it was judge by the shareholders. This would in all probabil ity have the hobby jolt (HA)Dividend take over add-on UN-EFFECTED comePrice/ stipend ratio enlarge UN-EFFECTED DECREASE (2 marks)Q9. Warden Co. has a current share price of $8.5/share which was antecedently $4.7/share. The go with paying a dividend of $2.6/share.What have would the shareholders in all probability to be effrontery on their enthronement? (FIB)400055461000(2 marks)Q10. Which of the following pedagogy relates to the ratios disposed(p) on a lower floor? (P&D)It provides a radical ginmill of the company carrying out This is the elementary measure of a companys writ of execution from an middling shareholders point of affect An trait of the put up on shareholders riches counterpunch OF SHAREHOLDERS scathe/ allowance ratio wampum PER SHARE(2 marks)GEARING AND expectant grammatical construction (ANSWERS)Q1. 1.38Cost of sales = 3,000 50% = 1,500Expenses = 2,500 15% = 375Total inconsistent cost = 1,875Contribution = 15,000 1,875 = 13,125Operati onal gearing = 13,125 9,500 = 1.38 Q2. DGearing = 200 (400+200) 100 = 33.33%ungeared (0%), Normal geared (=50%), Highly Geared (50%) & Low Geared (