Blackbird plc started with 10m of equity finance 10 years ago and has since paid out the following dividends; 1m five years ago, 2m three years ago and 3m one year ago. Today, Blackbird plc has a market value of 30 million and the required rate of return for Blackbird plc is 10%.

Required:

a) Calculate the excess return for Blackbird plc and comment upon the performance of the management team.

b) From a value-based management perspective, discuss and explain the key elements of value creation.

c) Blackbird plc is a multinational company with a centralised treasury department. Discuss the advantages and disadvantages of a centralised treasury department from Blackbirds perspective.

d) Identify three examples of anomalies to the semi strong form level of stock market efficiency and discuss how these anomalies might be explained by behavioural finance.