At 1 January 20x0, the capital structure of Q, a l...

At 30 September 20X2 the trial balance of Cavern includes the following balances:

Cavern has accounted for a fully-subscribed rights issue of equity shares made on 1 April 20X2 of one new share for every four in issue at 42 cents each. This was the only share issue made during the year.

What were the balances on the share capital and share premium accounts at 30 September 20X1().

Dinla Co has the following capital structure.

The ordinary shares of Dinla Co are currently trading at $4·26 per share on an ex dividend basis and have a nominal value of $0·25 per share. Ordinary dividends are expected to grow in the future by 4% per year and a dividend of $0·25 per share has just been paid.

The 5% preference shares have an ex dividend market value of $0·56 per share and a nominal value of $1·00 per share. These shares are irredeemable.

The 6% loan notes of Dinla Co are currently trading at $95·45 per loan note on an ex interest basis and will be redeemed at their nominal value of $100 per loan note in five years’ time.

The bank loan has a fixed interest rate of 7% per year.

Dinla Co pays corporation tax at a rate of 25%.

Required:

(a) Calculate the after-tax weighted average cost of capital of Dinla Co on a market value basis. (8 marks)

(b) Discuss the connection between the relative costs of sources of finance and the creditor hierarchy. (3 marks)

(c) Explain the differences between Islamic finance and other conventional finance. (4 marks)

The statements of financial position for Cindy and Payson as at 31 December 20X1 are presented below:AssetsCindyPaysonNon-current assets$$Property, plant and equipment270,000179,000investment300,000---Current assets Inventories95,00050,000Trade and other receivables110,00099,000Cash and cash equivalents8,00051,000Total Assets783,000379,000Equity and liabilities Equity Share capital80,00040,000Ruation surplus20,00010,000Retained earnings435,000209,000Liabilities Long-term loans200,00070,000Trade and other payables48,00050,000Total equity and liabilities783,000379,000 The following notes are relevant to the preparation of the consolidated financial statements:1) Cindy acquired 75% of the ordinary shares of Payson for $300,000 several years ago. At the acqu isition date, the retained earnings of Payson were $120,000 and ruation surplus was $10,000. The fair value of the non-controlling interest at the date of acquisition was $55,000.

The capital city of Canada is

A．Montreal.

B．Toronto.

C．Albert

D．Ottawa,