Question

(a) If a company XYZ Limited has stated retained earnings of A$100m and has in total issued 150 million ordinary shares, has drawn down bank debt of A$200 million, carries goodwill of A$87m, has no net cash and the market share price of XYZ is currently $1.40. Calculate the enterprise value of XYZ.

(b) If an investor has a short term investment horizon of 2-3 weeks then the most appropriate investment strategy for generating alpha returns above benchmark could likely be which of the following? Choose only one appropriate option and explain your reasoning. (2 marks) a. technical analysis

b. fundamental analysis

c. micro-economic industry analysis

d. geo-political risk analysis