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QUESTION 3 A public company listed on the NSX has to decide which option of financing would be the best for obtaining funds for investing
QUESTION 3 A public company listed on the NSX has to decide which option of financing would be the best for obtaining funds for investing in a very lucrative project. The amount of funds needed to invest in the project is N\$5000 000. The company has a yearly turnover of N$28750000 dollars; their share price is currently N $1228 per share; the number of outstanding shares is 14500000 ; the bank interest rate is 16% and the company's tax rate is 21%. Calculate which alternative would be the best option to obtain the funds for the investment: a) selling more shares for the full amount, or b ) taking out a loan from the bank for the full amount, or c) taking out a loan from the bank for 35% of the required amount and 65% of the required amount from the selling of more shares, or d) taking out a loan from the bank for 85% of the required amount and 15% of the required amount from the selling of more shares? Show all your calculations and indicate how you interpret the findings in each situation. [25 marks] QUESTION 4 Determine the Relative Market Share Position (RMSP) and the enterprise Growth Rate Percentage (GR\%) as coordinates from the available information which is provided in the table below. Plot A, B, C \& D on a Boston Consulting Group Matrix (BCG). Identify the most appropriate strategies for " A ". Assume " A " is an enterprise in the clothing manufacturing industry. Which 5 specific strategies would you be able to formulate for "A", considering the suggested alternative strategies from the BCG Matrix plot above
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