a)The following balance sheet relates to XYZ ltd for the period ended 31ST December 2018

Sh. 000 Sh. 000

Non-Current Assets 32,500

Current Assets 42,875 75,375

Financed by:

Liability and owners Equity 12,500

18% Debentures (Shs. 1000 par) 16,000

10% Preference Shares 6,250

Ordinary Shares (Sh. 10 par) 12,500

Retained Earnings 28,125 75,375

Additional Information;

The debentures are now selling at Sh. 950 in the market and they will be redeemed 10 years from now

By the end of the last financial period, the company had declared unpaid sh. 5 per share dividends. Dividends are expected to grow at an annual rate of 10% in the foreseeable future. Currently, the companys shares sell at sh. 38 per share in the stock exchange

Preference shares were issued in 2015 and their prices have remained the same over the years and corporate Tax rate is 30% p.a.

Compute the companys WACC (10 Marks)

b)Highlight 4 reasons in support of cross boarder listing (4 Marks)

c)Explain 3 managerial functions of a finance manager (6 Marks)

d) Describe 3 types of partners in a partnership (6 Marks)

e)Agency costs refer to costs incurred by shareholders in trying to control management behavior and actions and therefore minimize agency conflicts. Outline 4 of those costs (4 Marks)