Fin 326/337 Principles of Corporate Finance 2January 2013 SessionThe marking scheme for the Group Assignment |
| | Expected Answers | Marks allocated | Marks awarded |
1. | i. | Calculate the number of shares that would be repurchased given the current market price [3 marks *2 firms = 6 marks] + Presentation & Explanation [4 marks] | 10% | |
| ii. | Calculate the dividend per share that could be paid given the total number of shares outstanding [3 marks *2 firms = 6 marks] + Presentation & Explanation [4 marks] | 10% | |
2. | i. | Show the effects of cash dividend on stockholders’ equity using [2 marks *2 firms = 4 marks] + Presentation & Explanation [3 marks] | 7% | |
| ii. | Show the effects of stock split on stockholders’ equity [2marks *2 firms = 4 marks] + Presentation & Explanation [3 marks] | 7% | |
3. | Evaluate the dividend policies of the two chosen firms, including all justification and explanation [Calculation: 4 marks * 2 firms =8 marks + Explanation: 4 marks * 2 firms = 8 marks] + the comparison between the dividend policies of the two firms [8 marks] + Explain which firm investors should choose [6 marks] + Harvard Referencing [3 marks] | 33% | |
4. | Evaluate the performances, including all calculation and explanation, of the two chosen firms over the time period from year 2008 to year 2011 by using the profitability ratios, activity ratios, and investor ratios[Calculation: 8 marks * 2 firms =16 marks + Explanation: 3 marks * 2 firms = 6 marks]+ the comparison between performance of the two chosen firms [8 marks] + Harvard Referencing [3 marks] | 33% | |
| | Total = | 100% |
Question 1 (I) :Number of shares repurchase
KSL Holding Berhad
*Assume the current market price per share same as the market share price per share of 2013 = RM 1.63/share
2008
One-half of the cash & cash equivalent = RM 30,352,7782 = RM 15,176,389
Number of shares...