QUESTION ONE

(a) Outline ways through which the Supremacy of the Constitution is manifested.

Identify sources of law in your country.

(b)With specific reference to administrative law:

i) Discuss the difference between "substantive ultra vires" and "procedural ultra vires"

ii)Discuss ways in which the independence of the Judiciary is promoted.

QUESTION TWO

(a) Brutus Okeka purchased a radio from Dancing Spoon Ltd. on hire purchase terms. The purchase price was Sh.45,000. He paid a down payment of Sh.5,000 and the balance was to be paid in monthly instalments of Sh.5,000. Brutus Okeka defaulted after consistently paying the required instalments for a period of six months. Dancing Spoon Ltd. promptly repossessed the radio. Brutus Okeka feels aggrieved and seeks your advice.

Analyse the legal principles applicable in the above case and advise Brutus Okeka.

QUESTION THREE

(a) Outline six properties of law. (6 marks)

(b) In relation to the sources of law:

(i) Distinguish between an "amendment" and a "repeal" of a law.(4 marks)

(ii) Identify four examples of persuasive precedents.

QUESTION 4

1.I read in the sentence passed by the supreme court that, in ordr to value companies, economic doctrines lies in intermediary method between the practical models and the 'Anglo- Saxon' theorithical models common in the united states and the united Kingdom , and the criteria set by the administration in the result of combination of both mehods. This is completely different from what we have seen in class - is it correct?

2.As my company is not listed, the investment banks apply illiquidity premium .Actually, they say it as an illiquidity premium but then they called it asmall cap premium. One of the banks, apparentlybased on Titman y Martin (2007) , addede the following small gap premiums; "0.91% if the capitalization is situated between $1, 167 and $ 4,794 million ;1.70% if the capitalization is between $331 and $ 1,167million .;4.01% if it is lower than that of abig companies . which one is more appropruaete?

3.Which taxes do I have to use when calculating the free cash flow (FCF )it is the marginal tax rate or the medium tax rate of the leveragd company?

4. According to what I read in abook , market efficiency hypothesis implies that the expected average value of variations in the shares is zero . Therefore , the best estimate of the future price today, as it incorporates all the available information . is that right?

5. An investement bank calculated my WACC . The report says:the definition of the WACC is WACC =RF+Bu(RM-RF); being the risk free rate ". This is different from what we have seen in our class. Are they right?