Question 4 "The longer I go on, the more I am aware of the power of finance" (Welby, 2012). The traditional aim of financial management decisions has been to maximise shareholder wealth. Risks and returns should be balanced to maximise returns to shareholders through dividends and the enhancement of the market value of a business's shares. The managers of some businesses apply a satisficing approach to financial management decisions under this approach, businesses are perceived to be a coalition of customers, providers of finance, suppliers of goods and services and providers of labour. The aim of financial management decisions is to give all stakeholders a satisfactory return', rather than to maximise the wealth of shareholders. Required: (a) Identify and explain four principles of effective corporate governance. (8 marks) (b) Critically discuss the view that the traditional aim of financial management encourages short-termism in financial management decision-making. (11 marks) (c) Explain three roles that effective corporate governance can play in countering the perceived short-termism in financial management decision making. (6 marks) Question 2 You are the Chief Financial Officer Bruins Inc., a leading manufacturer of ice-hockey equipment in North America The company manufactures a range of products, including composite ice-hockey sticks The states of these composite stiks are made of achieve and policesin Estimated annual usage of graphite in Bruins inc's manufacturing process is 36.000 klograms. This is used fairy evenly throughout the your other than during August and September. In these periods, production increases to meet demand due to me start of the e-hockeyton in October and to meet demand due to the Christmas holiday in December Inventory holding costs for graphite are estimated to be $0.75 per kilograms per year. The estimated cost of placing and processing each order of graphite is $27. Throughout the year, it is estimated the graphite will contan average of 1.60 per klogram. However, forecast Nuctutions in demand mean that the cost of graphite could vary from a maximum of 5210 per kilogram and a minimum of 51.45 during the you Bruins in imports graphite from Kunlun Commodities pic, China. Recent disputes with This supplier have led Bruins Inc. to maintain a buffer nentory to manage the risk of disruption to the supply Kunlun Commodities pic offers a 5% bulk purchase Giscount on orders of gre of 10.000 Nons or more The company's approach to inventory management was consed at a recent meeting of Bruins in senior executive team. Patrice Marchand Chief Executive at Bruns Inc. advocate of just in time IT Inventaries management. Patrice has questioned the company's current approach to the management of as Inventory of graphite and has commented Holding inventores results in costs for the company. We could avoid the cost we introduce a JT proach to the management of our inventory at graphite Inventory management models and information technology are unable to help Xiaolin Fak. Chief Operating Officer w Bruns Inc. has pointed out that the succes management of inventories involves a number of practical issues Xiaolin has commented Inventory management models and information technology are used, but I'm sure that there are other issues that we need to consider. I would like to know more about the practic iplications of managing inventories Required: Calculate the economic order quarany (200) ter graphite (4 marks) +) Calculate the total al cost of graphite le) Critically evaluate Bruina in decision to use the EOQ model as part of its approach to the management of inventories is marks) (d) Advise Bruns inc's senior executive tears on the comments made by Patrice Marchand and Xiaolin Rask. Your advice should include an explanation of the costs of holding inventories, the cost of falling to manage inventories property and the practical implications of managing inventories (12 marks Assignment Task 2019 2000 116,268 48.675 67,592 19.996 13.670 33.926 2.672 31,254 7.600 23.654 Question 1 Detailed below are the most recent accounts of Quinn Ltd. Income Statements for years ended 31 March 2020 000 Revenue 116.422 Cost of sales 59.129 Gross profil 57.294 Selling and distribution costs 21.472 Administrative expenses 17 424 Operating profit 18,398 Finance costs 3.860 Profit before Taxation 14,538 Tax 5.538 Profit for the year after tax 9.000 Statement of Financial Position on 31 March 2020 E000 Non-current assets 100,310 Current assets Inventory 24.568 Trade receivables 48,884 Cash & cash equivalents 4376 77.828 Total assets 178.138 Liabilities and equity Current liabilities Trade payables 20.940 Tax liabilities 6.600 Bank overdrafts & loans 6.709 34,248 Non-current liabilities Bank loans 54.132 Total liabilities BA380 Net assets 89.758 2019 E000 102,652 22.438 35.744 B. 66.790 169.442 17.124 8.250 1.599 26,964 59.666 BORO 82.12 Equity Share capital Share premium account Retained earnings Total equity 47,584 10,304 31. AZO 89.758 47,584 10,304 26924 82.812 Required: Analyse and interpret the financial performance and efficiency, including the management of working capital of the company. Use relevant ratios and other appropriate calculations to support your analysis Question 3 You wea Corporate Finance Manager Regra pica leading operator of domestic We recycling and into seniom London, UK New legislation on arquity and more on that the company must invest in new incineration facilities Two posiblement options have been identified Each option as an expected to often years Silicet tunding is available to finance only one 500 10000 YOR Year Option A Option 600 C000 Incontrar 20020 F10260 Sereve year 10 TO Foreca necash flows Year: 40.000 0 000 Year 500 45 000 Year 45.000 S000 Year 50.000 50.000 Yew Yen SC000 Yew 20 000 0 000 5.000 00 30 000 Year 10 200 30.000 Assume that allows out the end of the Argonaus plus cool of 16 cm The company oth to restent pas desta recent meeting of Argonauts per Chute Argonaut s keen to understand the qualitative factors agreed to be considered in addition to the results of a se investiras commented Quartative investment praisal only the story. We need to consider the qualitative actos amigos en toe Sydney Groud, Director of Finance Agenampie has highlighted that success Investment appraanvolves a number of radicals Sydney Groudha commented Investment apprsatechniques such as payback, courting to run and next presente tre but there we cal ports to bear in mind when using these techniques. I would like to know more about these practical points Required Calculate the accounting rate of us for both option and option. Assume that the only once between show and the recitation charge (4 marks) Calculate the represent at tapten Aandton B.Uhe Agents ple's cost of capital as the course Critically evaluate the representedige (marks) Advise Argente's see on the comments made by Jamin telek and SydneyGroud Your should include an explanation of the qualitative factors will become before a decision which in the company should choose and any adesional information that might ad the investments marks