1.

LAF company has retained profit for reinvestment for the last year of
VND 350 million. The company has paid dividends of VND 210 million
of which preferred dividends account for VND 15 million. LAF has total
common equity at the end of last year amounting to VND 9,000 million.
Previously, LAF company issued 190,000 ordinary shares and currently
has 50,000 treasury shares. If now, ordinary share is sold for VND
120,000/share then what are the ratio of market value over book value
(MB) and price to earnings ratio (PE).
2. Hoang Long joint stock company issued fixed rate bonds bearing
interest at 11% pa. The bonds have a par value of VND 1,000,000 and
will mature after 5 years. Interests are payable semi-annually. If the
yield to maturity (YTM) of the bonds is 12%, what is the present value
of the bond?
3. Nam Trieu joint stock company is expected to pay dividend of VND
2000 dong/share next year. Expected dividend growth rate is 8% pa in
the next 12 years and subsequently 10% pa in the next 10 years and
subsequently 7% pa in the next 9 years and subsequently 5% to infinity.
If the investors require a rate of return of 10% pa from the share of Nam
Trieu joint stock company then what is the current price of the share?

4. Mr. A borrows VND 100 million from a bank at an interest rate of

10% pa. The loan is repayable annually in 4 equal installments starting
in 1 year after the borrowing date. What is the amount that Mr. A has to
pay annually? What are the principal and interest payments of the fourth
year after the borrowing date? Establish the payment schedule.
5. Company X currently has debt capital of VND 250 million bearing an
interest rate of 14% pa and 50,000 ordinary shares in issue. The
company has to pay preferred dividends of VND 15 million. The
company is subject to income tax at 20%. At an EBIT of VND 800
million, what is EPS (earning per share) of the company?