Question 3 Shiny Top is a privately held company that has come up with a revolutionary product that cures baldness using organic and natural herbs called Magic Hair. Shiny Top has started commercialization, production and marketing of Magic Hair in Singapore. Although still a relatively new product, Magic Hair has seen fantastic sales growth. Shiny Top has just completed a 3rd and final round of financing to raise funds in order to expand production and distribution to the rest of ASEAN. Shiny Tops cash burn (i.e. amount of cash spent each month) is still very high but is gradually reducing while sales is growing dramatically. The company estimates that it should break-even in 12 months. You are an analyst working for Moonshot Partners, a venture capitalist firm that was an early and substantial investor in Shiny Top. Moonshot Partners is looking to exit its stake in Shiny Top. Your boss has asked you to analyse the different exit strategies available by answering the following:

• What are the pros and cons of going public, repurchasing by the entrepreneur and sale of the business to a third party?(15 marks)

(b) Which exit strategy would you recommend and why? (15 marks)

Question 4 Noblam Inc. is a global commodity trading company. It trades and speculates on a variety of commodity products from all over the world. Its major businesses include cocoa, coffee, palm oil, copper and coal. Evaluate the different ways in which Noblam Inc. can obtain exposure to the commodities market.