Please answer question 1 with details. Please give me good and detailed explanation to the answer. Thank you!

FIN351e Corporate Finance Group-based Assignment July 2017 Presentation FIN351e Group-based Assignment GROUP-BASED ASSIGNMENT This assignment is worth 30% of the final mark for FIN351e Corporate Finance. The cut-off date for this assignment is 28 August 2017, 2355hrs. This is a group-based assignment. You should form a group of 4 members from your seminar group. Each group is required to upload a single report to Canvas via your respective seminar group. Please elect a group leader. The responsibility of the group leader is to upload the report on behalf of the group. It is important for each group member to contribute substantially to the final submitted work. All group members are equally responsible for the entire submitted assignment. If you feel that the work distribution is inequitable to either yourself or your group mates, please highlight this to your instructor as soon as possible. Your instructor will then investigate and decide on any action that needs to be taken. It is not necessary for all group members to be awarded the same mark. In this assignment, you are expected to: Apply corporate finance theory to practical situations through case studies Demonstrate the essential knowledge and interpersonal skills to work effectively in a team Demonstrate proficiency in writing Question 1 The Jumbo Group restaurant chain launched its initial public offering (IPO) in October 2015. As a financial analyst of Tiger Investment Fund, your boss has requested for you to brief her on this investment opportunity. Required: Draft a memorandum on covering the following matters: (a) Describe the listing requirements and process of issuing equity securities on SGXCatalist and the indicative timetable of Jumbo's IPO. (15 marks) (b) Discuss the role of UOB Limited in this IPO. (8 marks) (c) Analyse the costs (direct and indirect) associated with Jumbo's IPO. (10 marks) (d) Calculate the total amount of cash raised in this offering and describe the use of the proceeds. (10 marks) SINGAPORE UNIVERSITY OF SOCIAL SCIENCES (SUSS) Page 2 of 3 FIN351e (e) Group-based Assignment Analyse the effect of dilution on existing shareholders in respect of new shares being issued. (7 marks) Question 2 On 1 January 2016, Fu Yu Ltd leased an equipment with a market value of $40 million and useful life of five years. The terms of the lease are as follow: Lease term of 60 months. Effective interest rate of 8%. Instalments of $800,000 to be paid at the end of each month. During the lease period, Fu Yu is responsible for maintain the insuring the equipment. It ownership of the equipment will be transferred to Fu Yu at the end of the lease term. The firm's financial year end is 31 December. Required: (a) Explain why this lease is classified as a finance lease. (12 marks) (b) Prepare the accounting entries for FY 2016 associated with this finance lease. (9 marks) (c) Discuss the financial implications if Fu Yu treated this transaction as an operating lease. (9 marks) Question 3 Sometime in November 2015, Singapore Airlines (\"SIA\") launched its takeover offer for Tiger Airways with the intention of delisting and privatising the budget carrier. By February 2016, SIA's stake in Tiger Airways rose to more than 90%. Required: (a) Identify the type of general offer made by SIA for Tiger Airways and describe the key events in connection with the takeover process. (10 marks) (b) Identify, with reason(s), the type of acquisition made by SIA and analyse the rational of acquiring Tiger Airways. (10 marks) ---- END OF ASSIGNMENT ---- SINGAPORE UNIVERSITY OF SOCIAL SCIENCES (SUSS) Page 3 of 3