Theory qns

Accounting breakeven sales per outlet per year.

Cash flow breakeven sales per outlet per year.
Net present value breakeven sales per outlet per year.

Jul 2012 Question 6

MD being a private company is not in a position to issue long-term bonds and is
currently relying on financing through accounts receivables. Discuss the various
sources of financing the working capital needs for MD.
(15 marks)
Jul 2013 Question 4
Discuss how simulations, such as the Monte Carlo simulation, could be applied to
assess the volatility of the net present value of this project.
(10 marks)
Jul 2013 Question 5
Describe the company you are working with or a company which you are familiar wi
th.
Examine the factors to be considered by the management of this company in
formulating the dividend policy.
(20 marks)
Jan 2014 Question 5
If you were the finance manager of the company you work for, or of a company you
are
familiar with, apply basic tools of financial analysis to discuss the considerat
ions that
help determine the choice between debt and equity, and the debt-equity ratio.
(10 marks)

Jul 2014 Question 5

Assume your firm, or a firm you are familiar with, has to make an important deci
sion
regarding future expansion through increasing investment in manufacturing equipm
ent
(for a manufacturing firm) or opening an additional office/outlet (service secto
r). Apply
basic tools of financial analysis and analyse the various decisions you would ne
ed to
make as the finance director for the firm. What information do you need in order
to
make informed decisions?
(10 marks)
Jan 15 Question 3
In order to fund the expansion plan, management is desirous of increasing its fi
nancial
leverage to $17 million. Instead of borrowing, the company can opt to finance th
is
investment by reducing its dividend payout.
Analyse and discuss your views on the proposed change in the AFQs dividend policy
.
(20 marks)
Jul 15 Question 3
Analyse the circumstances under which the weighted average cost of capital can b
e
used in investment appraisal. (15 marks)
Jul 15 Question 4
Explain the difference between risk and uncertainty in the context of investment
appraisal, and describe how sensitivity analysis can be applied to incorporate r
isk into
the investment appraisal process. (15 marks)
Jul 15 Question 5
In recognition of the continued support of its shareholders, the management of S
uper
Group Limited is committed to distributing at least 50% of its net profits as di
vidends.
Examine five factors management should be mindful about when communicating the
Companys dividend policy. (10 marks)
Jan 16 Question 5
Bright Smile does not have a policy on the payment of dividend, however it has b
een
declaring dividends at half-year and final year-end intervals.
Analyse, in a balanced manner, whether it is important for Bright Smile to estab
lish a
dividend policy. (15 marks)