Question 1. In an effort to help banks and public companies implement their business continuity plans in response to the COVID-19 pandemic, the regulators of Ghana's capital market provided some support. Using the publications already provided, a) Discuss five main ways in which the regulators of this market (i.e. Bank of Ghana, Securities and Exchange Commission, and Ghana Stock exchange) provided support. b) Identify and explain five actions some banks and public companies took in response to this support extended to them. c) Note that marks will be awarded for the following: introduction, mechanics and style, arguments made and conclusion (20 marks) Question 2. Discuss the listing requirements a company had to meet in order to finally get listed on the Ghana Stock Exchange. In your discussion, provide a name for the company as well as its line of business. In your conclusion explain why the decision for the company to list on the stock exchange was a good one. Note that marks will be awarded for the following: introduction, mechanics and style, arguments made and conclusion (20 marks) Question 3. S&S Air was founded 10 years ago by friends Mark Sexton and Todd Story. The company has manufactured and sold light airplanes over this period, and the company's products have received high reviews for safety and reliability. The company has a niche market in that it sells primarily to individuals who own and fly their own airplanes. The company has two models, the birdie, which sells for US553, 000, and the Eagle, which sells for US$78,000. While the company manufactures aircraft, its operations are different from commercial aircraft companies. S&S Air builds aircraft to order. By using prefabricated parts, the company is able to complete the manufacture of an airplane in only five works The company also receives a deposit on each order, as well as another partial payment before the order is complete. In contrast, a commercial airplane may take one and one-half to two years to manufacture once the order is placed. Mark and Todd have provided the following financial statements. They have also gathered the industry ratios for the light airplane manufacturing industry S&S Air Inc. Income Statement for the year ended 31 December 2016 (GHO Sales 15,444,000 Cost of goods sold 10,884.000 Other expenses 1.845.600 Depreciation 504.000 EBIT 2.210,400 Interest 2727- Taxable income 1,932.600 Taxes (40%) 772.040 Net income Dividends Add To retained camins 1.199. 347.868 811.692 S&S Air Inc. Statement of Financial Position as at 31 December 2016 GHC ASSETS Non-current as Net plant and equipment 8673.600 8673.600 566,400 505,200 280.800 1.352.400 10.026,000 Current assets Inventory Accounts receivable Cash TOTAL ASSETS EQUITY AND LIABILITIES Shareholder equity Common stock Retained earings Total equity Non-current liabilities Long-term debe Total non-current liabilities 120,000 4.988.400 3.108.400 3.114.000 3.114.000 5.4 1.207,200 Current liabilities Accounts payable Notes payable Total current liabilities Total liabilities TOTAL EQUITY AND LIABILITIES 4.917.000 10.026.000 1.352.400 10.076,000 120,000 4.988.400 3.108.400 TOTAL ASSETS LIABILITIES 4 of 7 ulty Ketamed earnings Total equity Non-current liabilities Long-term debe Total non-current liabilities Current liabilities Accounts payable Notes payable Total current liabilities 3.114.000 3.114.000 596,400 1.207200 1.803,600 Total liabilities TOTAL EQUITY AND LIABILITIES 4.917.000 10.026.000 Current ratio Quick ratio Cash Total asset tumover Inventory turnover Receivables turnover Total debt ratio Debt-equity ratio Equity multiplier Light Airplane Industry Ratios Lower quartile Median 0.50 0.21 0.08 0.21 0.68 O.RS 4.89 615 6.27 0.44 0.52 0.79 1.08 1.79 Upper quartile 1.89 0.62 0.39 1.38 10.89 0.61 1.56 2.56 2.08 S.IN 8.06 5.84 10.27 Times interest earned Cash coverage ratio Profit margin Return on assets Return on cquity 4.05% 6,05% 993% 6.98% 10.5396 16.54% 13.21% 26,15% Required 2. In view of the high reviews for safety and reliability that their products have received, would you say that S&S Air has lower credit risk than the industry's mediam? b. Calculate ten ratios and evaluate them to support your conclusion c. Note that marks will be awarded for the following introduction, mechanics and style, arguments made and conclusion (20 marks) Question 1. In an effort to help banks and public companies implement their business continuity plans in response to the COVID-19 pandemic, the regulators of Ghana's capital market provided some support. Using the publications already provided, a) Discuss five main ways in which the regulators of this market (i.e. Bank of Ghana, Securities and Exchange Commission, and Ghana Stock exchange) provided support. b) Identify and explain five actions some banks and public companies took in response to this support extended to them. c) Note that marks will be awarded for the following: introduction, mechanics and style, arguments made and conclusion (20 marks) Question 2. Discuss the listing requirements a company had to meet in order to finally get listed on the Ghana Stock Exchange. In your discussion, provide a name for the company as well as its line of business. In your conclusion explain why the decision for the company to list on the stock exchange was a good one. Note that marks will be awarded for the following: introduction, mechanics and style, arguments made and conclusion (20 marks) Question 3. S&S Air was founded 10 years ago by friends Mark Sexton and Todd Story. The company has manufactured and sold light airplanes over this period, and the company's products have received high reviews for safety and reliability. The company has a niche market in that it sells primarily to individuals who own and fly their own airplanes. The company has two models, the birdie, which sells for US553, 000, and the Eagle, which sells for US$78,000. While the company manufactures aircraft, its operations are different from commercial aircraft companies. S&S Air builds aircraft to order. By using prefabricated parts, the company is able to complete the manufacture of an airplane in only five works The company also receives a deposit on each order, as well as another partial payment before the order is complete. In contrast, a commercial airplane may take one and one-half to two years to manufacture once the order is placed. Mark and Todd have provided the following financial statements. They have also gathered the industry ratios for the light airplane manufacturing industry S&S Air Inc. Income Statement for the year ended 31 December 2016 (GHO Sales 15,444,000 Cost of goods sold 10,884.000 Other expenses 1.845.600 Depreciation 504.000 EBIT 2.210,400 Interest 2727- Taxable income 1,932.600 Taxes (40%) 772.040 Net income Dividends Add To retained camins 1.199. 347.868 811.692 S&S Air Inc. Statement of Financial Position as at 31 December 2016 GHC ASSETS Non-current as Net plant and equipment 8673.600 8673.600 566,400 505,200 280.800 1.352.400 10.026,000 Current assets Inventory Accounts receivable Cash TOTAL ASSETS EQUITY AND LIABILITIES Shareholder equity Common stock Retained earings Total equity Non-current liabilities Long-term debe Total non-current liabilities 120,000 4.988.400 3.108.400 3.114.000 3.114.000 5.4 1.207,200 Current liabilities Accounts payable Notes payable Total current liabilities Total liabilities TOTAL EQUITY AND LIABILITIES 4.917.000 10.026.000 1.352.400 10.076,000 120,000 4.988.400 3.108.400 TOTAL ASSETS LIABILITIES 4 of 7 ulty Ketamed earnings Total equity Non-current liabilities Long-term debe Total non-current liabilities Current liabilities Accounts payable Notes payable Total current liabilities 3.114.000 3.114.000 596,400 1.207200 1.803,600 Total liabilities TOTAL EQUITY AND LIABILITIES 4.917.000 10.026.000 Current ratio Quick ratio Cash Total asset tumover Inventory turnover Receivables turnover Total debt ratio Debt-equity ratio Equity multiplier Light Airplane Industry Ratios Lower quartile Median 0.50 0.21 0.08 0.21 0.68 O.RS 4.89 615 6.27 0.44 0.52 0.79 1.08 1.79 Upper quartile 1.89 0.62 0.39 1.38 10.89 0.61 1.56 2.56 2.08 S.IN 8.06 5.84 10.27 Times interest earned Cash coverage ratio Profit margin Return on assets Return on cquity 4.05% 6,05% 993% 6.98% 10.5396 16.54% 13.21% 26,15% Required 2. In view of the high reviews for safety and reliability that their products have received, would you say that S&S Air has lower credit risk than the industry's mediam? b. Calculate ten ratios and evaluate them to support your conclusion c. Note that marks will be awarded for the following introduction, mechanics and style, arguments made and conclusion (20 marks)