PART THREE |3lJ MARKS} a} As an MBA student, what is your understanding or reading of this situation - increasing dividends; increasing share buyback; borrowing to pay for increased outlays? What are the outlays anyway? b) Consider the following balance sheet of market values of ABC Co. ABC borrowed GHC 500, which is due in a few months. Net working capital GHC 200 Bonds outstanding GHC 250 Fixed assets 100 Common stock 50 Total assets GHC 300 Total Liabilities GHC 300 Between shareholders, creditors, and any other third party [you determine who} who gains and who losses from the following maneuvers? a) ABC pays out GHC 50 in cash dividend. b) ABC halts operations, sells its fixed assets, and converts net working capital into GHC 200 cash. Unfortunately the fixed assets fetch only GHC 60 on the second- hand market. The GHC 260 cash is invested in Treasury bills. c} Suppose they invest in a new project that been identified. There is a 10% chance that its NPV would be 400, and 90% chance that its NPV would be -50. d) The lenders agree to extend the maturity of their loan from 1 year to 2 in order to give Circular a chance to recover