FIN3701 Assignment 02 Semester 01 & 02 (Both) 2021

, PREVIEW OF QUESTION 1


QUESTION 1

1.1

The number of shares to be issued under the proposed capital structures.

Capital Structure A Capital Structure B
Debt Ratio 0% (Present) 20% 40%
Total capital R750 000 R750 000 R750 000
Own capital - equity R750 000 R600 000 R450 000
Debt R0 R150 000 R300 000
Number of shares R750 000/R50 R600 000/R50 R450 000/R50
issued = 15 000 shares = 12 000 shares = 9 000 shares
Number of shares 3 000 shares 6 000 shares
repurchased