A、Establishing annual Objectives
B、Matching Structure with Strategy
C、Managing Conflict
D、Allocating resources
A.challenging挑战性
B.reasonable合理性
C.special特殊性
D.持续性consistent
A、Establishing annual Objectives 设定年度目标
B、Matching Structure with Strategy 使组织结构适应企业战略
C、Managing Conflict 管理冲突
D、Allocating resources 分配资源
A、Basis for resource allocation资源分配的基础
B、Mechanism for management evaluation帮助建立起管理评估的机制
C、Metric for gauging progress on long-term objectives衡量长期目标进展情况的度量标准
D、Establish priorities (organizational, division, & departmental)为组织整体、业务单元或部门中的各项活动建立优先次序
Required:
(a) Evaluate the financial performance of JJG Co, and analyse and discuss the extent to which the company has achieved its stated corporate objectives of:
(i) maximising the wealth of its shareholders;
(ii) achieving continuous growth in earnings per share.
Note: up to 7 marks are available for financial analysis.(12 marks)
(b) If the new finance is raised via a rights issue at $7·50 per share and the major expansion of business has
not yet begun, calculate and comment on the effect of the rights issue on:
(i) the share price of JJG Co;
(ii) the earnings per share of the company; and
(iii) the debt/equity ratio. (6 marks)
(c) Analyse and discuss the relative merits of a rights issue, a placing and an issue of bonds as ways of raising the finance for the expansion. (7 marks)
Many traditional U.S. supporters clearly withdrew their vote to signal displeasure over U.S. unilateralism. They have been increasingly chagrined by Washington’s tendency to ignore the international consensus on issue ranging from the use of land mines to the Kyoto climate change treaty. They are also critical of what they see ass Washington’s tendency to publicise the issue of human rights, using annual resolutions at the committee to denounce China or Cuba hen that conforms to U.S. foreign policy objectives but for the same reason voting alone in defence of Israel when that country is in the dock over its conduct.
The following financial information relates to MFZ Co, a listed company:
MFZ Co has 12 million ordinary shares in issue and has not issued any new shares in the period under review. The company is financed entirely by equity, and is considering investing $9·2 million of new finance in order to expand existing business operations. This new finance could be either long-term debt finance or new equity via a rights issue. The rights issue price would be at a 20% discount to the current share price. Issue costs of $200,000 would have to be met from the cash raised, whether the new finance was equity or debt.
The annual report of MFZ Co states that the company has three financial objectives:
Objective 1: To achieve growth in profit before interest and tax of 4% per year
Objective 2: To achieve growth in earnings per share of 3·5% per year
Objective 3: To achieve total shareholder return of 5% per year
MFZ Co has a cost of equity of 12% per year.
Required:
(a) Analyse and discuss the extent to which MFZ Co has achieved each of its stated objectives. (7 marks)
(b) Calculate the total equity market value of MFZ Co for 2014 using the dividend growth model and briefly discuss why the dividend growth model value may differ from the current equity market value. (5 marks)
(c) Calculate the theoretical ex rights price per share for the proposed rights issue. (5 marks)
(d) Discuss the sources and characteristics of long-term debt finance which may be available to MFZ Co. (8 marks)
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