BUS3044F+Tutorial+1 - BUS3044F 2011 Tutorial Due: Week...

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BUS3044F 2011 Tutorial Due: Week beginning 21 February _____________________________________________________________ _ Question 1 The founders of Rotocon own 300,000 A-class shares (each with one vote). Recently the company had an IPO during which it issued an additional 2,000,000 N-shares (each with 0.1 of a vote). 150,000 of the 2,000,000 new shares were issued to Rotocon’s employee trust. a. In no more than ½ a page, explain why the founders most probably followed this strategy. Show calculations where necessary. (4 marks) b. Rotocon is either listed on the JSE or on a European stock exchange. Which of the two options is more likely and why? (1 mark) c. If Rotocon declares a dividend of R750,000 at the end of the year, what would be the dividend per A-share and how would this compare to the dividend per N share (show calculations if applicable)? (3 marks) d. Determine Rotocon’s free float for both share classes. (2 marks)
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This note was uploaded on 06/01/2011 for the course FIN 3026W taught by Professor Drtoerien during the Summer '09 term at University of Cape Town.

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BUS3044F+Tutorial+1 - BUS3044F 2011 Tutorial Due: Week...

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