F3 무료 덤프문제 온라인 액세스

A company has:
* $7 million market value of equity
* $5 million market value of debt
* WACC of 9.375%
* Corporate income tax rate of 15%
According to Modigliani and Miller's theory of capital structure with tax, what is the ungeared cost of equity?

• A.10.00%
• B.10.27%
• C.8.79%
• D.14.52%

A company is considering the issue of a convertible bond compared to a straight bond issue (non-convertible bond).
Director A is concerned that issuing a convertible bond will upset the shareholders for the following reasons:
* it will dilute their control
* the interest payments will be higher therefore reducing liquidity
* it will increase the gearing ratio therefore increasing financial risk Director B disagrees, and is preparing a board paper to promote the issue of the convertible bond rather than a non-convertible.
Advise the Director B which THREE of the following statements should be included in his board paper to promote the issue of the convertible bond?

• A.The convertible bond may not dilute control as the bond holder has an option to choose conversion.
• B.The coupon rate on the convertible bond will be lower than that on a non-convertible bond.
• C.Over the life of the bond, a convertible will be more expensive than a non-convertible.
• D.Issuing a convertible bond will have a more favourable impact on the gearing ratio than a non-convertible bond.
• E.When converted into shares, the company will receive a cash inflow which can be used for future investments.

A project requires an initial outlay of $2 million which can be financed with either a bank loan or finance lease.
The company will be responsible for annual maintenance under either option.
The tax regime is:
* Tax depreciation allowances can be claimed on purchased assets.
* If leased using a finance lease, tax relief can be claimed on the interest element of the lease payments and also on the accounting depreciation charge.
The trainee management accountant has begun evaluating the lease versus buy decision and has produced the following data. He is not confident that all this information is relevant to this decision.

Using only the relevant data, which of the following is correct?

• A.The bank loan is $20,000 LESS expensive than the finance lease.
• B.The bank loan is $70,000 LESS expensive than the finance lease.
• C.The bank loan is $30,000 MORE expensive than the finance lease.
• D.The bank loan is $120,000 LESS expensive than the finance lease.

Three companies are quoted on the New York Stock Exchange. The following data applies:

Which of the following statements is TRUE?

• A.Companies A and B have the same capital structure
• B.Companies A and C have the same business risk
• C.Companies A and B have the same business risk
• D.Company A has the greatest business risk

Company M is a listed company in a highly technical service industry.
The directors are considering making a cash offer for the shares in Company Q, an unquoted company in the same industry.
Relevant data about Company Q:
* The company has seen consistent growth in earnings each year since it was founded 10 years ago.
* It has relatively few non-current assets.
* Many of the employees are leading experts in their field. A recent exercise suggested that the value of the company's human capital exceeded the value of its tangible assets.
The directors and major shareholders of Company Q have indicated willingness to sell the company.
Before negotiations become too advanced, the directors of Company M are considering the benefits to their company that would follow the acquisition.
Which THREE of the following are the most likely benefits of the acquisition to Company M's shareholders?

• A.Reduction of risk through diversification.
• B.Improve earnings per share (EPS).
• C.Access to technical expertise.
• D.Gain economies of scale.
• E.Improved asset backing for borrowing due to the acquisition of intangible assets.