- Fear by employees of losing their jobs
- Fear of the unknown since they have very little knowledge on performance evaluation
- Sometimes the exercise is misused by malicious superiors
- Employees are not hardworking therefore, they know they will be found to have laxity
- Certain performance attributes cannot be measured easily hence difficulty in performing an evaluation.
Kavungya answered the question on May 6, 2022 at 06:08
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The structure is considered optimum and the management would wish to maintain this...(Solved)
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Akabebi Company Limited intends to invest in a new project which is estimated to cost
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management has proposed to raise the required funds through the following means:
1. Issue 100 10% debentures at the current market value of Sh.5,000 per debenture.
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3. Issue 10% Sh.20 preference shares at the current market price of Sh.25 per share
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is estimated to be 12% of the share value.
The company’s current dividend yield is 5% which is expected to continue in the near future.
Corporation tax rate is 30%.
Required:
a) Determine the current dividend per share.
b) Determine the number of ordinary shares to be issued.
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(ii)...(Solved)
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Additional Information:
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rate was 50% or Sh.3 per share. For the year ended 30 November 2003, the EPS declined to
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was maintained for the financial year ended 30 November 2003. As well as for the first six
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2. Recent projections however have caused management to revise downwards the expected EPS. For
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and for the financial year ending 30 November 2004, the forecast of EPS has been reduced to
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3. Kaka Kuona Ltd. ‘s ordinary shares are currently selling in the market at Ss. 15 per share
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Required:
a) Calculations to help determine whether it will be feasible to maintain dividends at Sh.3 Per share
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return of 15%.
The company's cost of capital is 12%.
Required;-
The share price of the company which might be expected by the market
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(ii) If the company announces the change of dividend policy.
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ii. Dividend cover.
iii. Price – earnings ratio.
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