INTERNATIONAL UNIVERSITY OF GRAND BASSAN END OF SEMENTER EXAML SPRING 300 CORPORATE FINANCE ANSWER ATLEAST THREE QUESTIONS QUESTION1 A. What are some of the amative sources from which equitycapital? (4 Marks) B. Explain the difference between a Scorpion and mark) C Explain the following soal of fimm (6 mars Profit maximisation Shareholderwealthamsto Maximizing sales and market D. Provide 2 advantages and disadvantages of pain these messes the sole proprietorship (2) the partnership and the cost marks QUESTION 2 A You are running a hot Internet company Analyspeed that beings will grow 30% per year for the next five years. After that, as competition increases, caming growth is expected to slow to 2% per year and continue that love ever Your company has just announced earnings of S1.000.000 What is the present value of all future coming if the interest rate is 867 (lint flest five senso be trued as an annuity and subsequent years should be treated as a perpetuits and also assume all cash flows our at the end of the year) (Smarks) B. You are the lucky winner of the $50 million state lottery. You can take your prize money either as (a) 30 payments of St million per year starting today or (b) 515 million paid today. If the interest rate is 5%, which option should you take marks) C. Your biotech firm plans to buy a new DNA sequencer for 500.000 The seller requires that you pay 20% of the purchase price as a down payment and is willing to finance the remainder by offering a 48-month loan with expul monthly payments and an interest rate of 0.5% per month. What is the monthly loan payment? (5 marks) D. List 3 advantages and disadvantages of taking a company public (5 marks) INTERNATIONAL UNIVERSITY OF GRAND BASSAN END OF SEMENTER EXAML SPRING 300 CORPORATE FINANCE ANSWER ATLEAST THREE QUESTIONS QUESTION1 A. What are some of the amative sources from which equitycapital? (4 Marks) B. Explain the difference between a Scorpion and mark) C Explain the following soal of fimm (6 mars Profit maximisation Shareholderwealthamsto Maximizing sales and market D. Provide 2 advantages and disadvantages of pain these messes the sole proprietorship (2) the partnership and the cost marks QUESTION 2 A You are running a hot Internet company Analyspeed that beings will grow 30% per year for the next five years. After that, as competition increases, caming growth is expected to slow to 2% per year and continue that love ever Your company has just announced earnings of S1.000.000 What is the present value of all future coming if the interest rate is 867 (lint flest five senso be trued as an annuity and subsequent years should be treated as a perpetuits and also assume all cash flows our at the end of the year) (Smarks) B. You are the lucky winner of the $50 million state lottery. You can take your prize money either as (a) 30 payments of St million per year starting today or (b) 515 million paid today. If the interest rate is 5%, which option should you take marks) C. Your biotech firm plans to buy a new DNA sequencer for 500.000 The seller requires that you pay 20% of the purchase price as a down payment and is willing to finance the remainder by offering a 48-month loan with expul monthly payments and an interest rate of 0.5% per month. What is the monthly loan payment? (5 marks) D. List 3 advantages and disadvantages of taking a company public
