HND Investment 投资学

QuestionsAll questions must be attempted.1 Alistair tells you that when he was asked to choose a government security he could not differentiate one from another. The two that his father had suggested were:(a) 8% Treasury Stock 2015 (his eventual choice)(b) 2½ % Index Linked Stock 2011Explain to Alistair the main features of each of the above.2 Alistair has received his Contract Note detailing his recent purchase of gilts. He is unclear as to how the cost of the gilts was calculated by his broker. Using the following information calculates the cost of the purchase:3♦ the purchase took place on the 4 May♦ the interest is paid half yearly on 22 February and 22 August♦ ignore brokerage fees in your calculation3 Alistair has recently inherited the shares in his portfolio from his late aunt. He has no knowledge of their features. Explain the main features of both the categories of shares he holds in his portfolio.4 Alistair has received notification from Alpha plc that they intend to make a 1 for 4 rights issue. Although Alistair is aware of what a rights issue is, he does not understand the financial implications of the issue.Calculate the theoretical ex-rights price of the issue based on a rights price of 240p and a current market value of 280p5 Alistair refers to the recently received set of company accounts from Beta plc. He admits to having some difficulty in understanding the financial information that the company provides and asks you to explain how the following ratios were calculated, based on this extract from the accounts.(a) Earnings yield(b) Price/earnings ratioBeta plc Extract from the Profit and Loss Account — Year ended 31 December 2002£mTurnover 370(Cost of sales) (160)Operating profit 210(Operating costs) (90)Profit before taxation 120Taxation (30)Profit after taxation 90Dividends (20)Retained earnings 70Profit and loss brought forward 210Profit and loss carried forward 280You are aware from the accounts that the company has an issued share capital of180 million shares of 25p each and that the market share price on 31 December 2002 stood at 160p.6 Due to the difficulties that Alistair is having in understanding the company accounts he asks if you can recommend any alternative, and more easily understood, ways in which he can keep up-to-date with the performance of his shares.(a) State four sources, other than company accounts, that Alistair may find useful in keeping up-to-date with the performance of his shares.(b) For each source, give one example of the type of information that the source provides.7 Alistair’s brothe r Peter is still trying to convince Alistair of the merits of investing in property with a view to leasing to tenants. Alistair remains cautious about sucha venture but asks you to summarize for him the main benefits and drawbacks of such an investment.8 Despite having spoken to a Financial Adviser appointed by his employer Alistair is still unsure of the features of a Stakeholder Pension Scheme. Summaries the main features of this scheme.Suggested solution and making an assessment decision1 Government securities:(a) 8% Treasury Stock 2015♦ guaranteed rate of 8% interest per annum, paid twice yearly♦ Repayment by government in year 2015 at par (£100)(b) 2½% Index Linked Stock 2011♦ Inflation proofing of interest and capital repayment♦ not repaid at par so more expensive to purchaseStudents may also consider tax implications of above.2 Calculation of gilts purchase:♦ £30,000 @ £104.50/£100 = £20,900♦ Interest per half year = £20,000 @ 8%/2 = £800♦ Days in period 22 Feb to 5 May (one extra day for settlement)♦ 6+31+30+5 = 72♦ Half year = 22 Feb to 22 Aug = 6+31+30+31+30+31+22 = 181 ♦ Interest split = £800 x 72/181 = £318.23♦ Total paid = £20,900 + £318.23 = £21,218.233 Features of shares（自己理解5点）(a) Ordinary shares:(i) Main share capital of a company(ii) Dividends payable if company profits permit(iii) Can be freely sold on to others(iv) No fixed value — market value instead(v) Risky — last to be repaid out of annual profit and on liquidation (vi) Issued with nominal value(viii) Full voting rights(b) Preference shares:（4点）(i) Fixed rate of dividend paid(ii) Dividends paid earlier that ordinary dividend(iii) Rank ahead of ordinary shares on liquidation(iv) No opportunity for dividend growth unless ‘participating’(v) May have restricted or no voting rights4 Theoretical ex-rights price:♦ 5,000 shares @ 280 = £14,000♦ 1,250 rights @ 240 = £ 3,000♦ 6,250 total £17,000♦ 1 share = 17,000/6,250 = 272p (theoretical ex-rights price)5 (a) Earnings yield = Earnings per share/market price x 100♦ Earnings = (net) profit after taxation = £90m♦ Earnings per share = 90m/180m = 50p♦ Earnings yield = 50p/160p x 100 = 31.25%(b) Price/earnings = market price/earnings per share♦ 160p/50p = 3.2 times6 Sources of information — any four such as:（自己理解）♦ Financial Times♦ Broadsheet newspapers♦ Magazines eg Investors Chronicle, Money Management♦ Television, eg Business Lunch, news, CNBC, Bloomberg PLUS♦ One example of how each can provide information7 Investing in propertyBenefits:♦ Capital assets can be purchased with valuation easily made♦ Insurable against damage♦ Regular income from rent♦ Capital and interest can increase with inflationDrawbacks:♦ Time delay if trying to realise capital — sitting tenant♦ Repairs and maintenance are the owner’s problem♦ Unsuitable tenants can be a problem♦ Non-rental periods possible♦ Property law is difficult to understand and can be costly8 Stakeholder Pension Scheme — from(5个)♦ Eligibility for all employees working for employers with five or more employees ♦ can contribute from £20 regular or one-off♦ 1% maximum charge per year♦ can stop, start and vary payments at any time♦ Up to £3,600 per annum contributions♦ Tax benefits on contributions by employees♦ Tax benefits for employers♦ can take benefits from age 50 to age 75♦ can carry pension from employer to employer。