(a) Name main forms of business and discuss key differences between them .

[Maximum word count: 375 words]

(b) Jade Plc. has a beta of 1.10. The risk-free rate of interest is currently 6%, and the required return on the market portfolio being 13%. The company plans to pay a dividend of 2.91 and anticipates that its future dividends will increase at an annual consistent rate of that from 20092011 period below:

Year	Dividend
2009	2.25
2010	2.45
2011	2.67

Compute the current value of Jade Plc stock.

(c) Name key elements of an option agreement and draw payoff diagrams for call and put options and describe how a financial manager might use options to hedge risks by buying options and shares. Illustrate your answer .

[Maximum word count: 375 words]