SUP is a large supermarket chain. It produces many 'own brand' goods in Country S where the parent company is located. These goods are sold in SUP's supermarkets in Country S as well as being sold at a 'transfer price' to SUP companies located in foreign countries for sale in the SUP supermarkets located in that country.
Which of the following factors is the most important for SUP from a lax planning and compliance viewpoint when setting prices for the 'own brand' goods sold to other group companies'?
A company is deciding whether to offer a scrip dividend or a cash dividend to its shareholders.
Although the company has excellent long-term growth prospects, it is experiencing short-term profit and cash flow problems.
Which of the following statements is most likely to be a reason for choosing the scrip dividend?
An all equity financed company plans an issue of new ordinary shares to the general public to raise finance for a new project
The following data applies:
• 10 million ordinary shares are currently in issue with a market value of S3 each share
• The new project will cost S2.88 million and is expected to give a positive NPV of S1 million
• The issue will be priced at a AaA discount to the current share price.
What gam or loss per share will accrue to the existing shareholders?
A company plans to cut its dividend but is concerned that the share price will fall. This demonstrates the _____________ effect
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