Solve the following

QUESTION S ") "Since debt capital is cheaper than equity, companies should resort to one hundred percent use of debt to finance the investment" Discuss the limitations of the above financial policy QUESTION 6 a) What are the differences between an "operating lease" and a "finance lease" QUESTION 7 (a) Discuss the main factors which a company should consider when determining the appropriate mix of long-term and short-term debt in its capital structure. (b ). Malindi Leisure Industries is already highly geared by industry standards, but wishes to raise external capital to finance the development of a new beach resort. Outline the arguments for and against a rights issue by Malindi Leisure Industries. (c) Examine the relative merits of leasing versus hire purchase as a means of acquiring capital assets. QUESTION 8 (a) List and explain five factors that should be taken into account by a businessman in making the choice between financing by short-term and long-term source (b) Enumerate four advantages of convertible bonds from the point of view of the borrower. If you want your dreams to become true don't over-sleep. Unknown.FINANCIAL MARKETS REVIS 7) Distinguish between the terms "coin div" and "ex - div" as used in financial markets. JUNE 2009 QUESTION ONE, QUESTION 10 a) Explain the main factors behind the rapid development of capital markets in your country. VE A DECEMBER 2006 QUESTION SIX QUESTION 11 a ) Discuss the role of a capital markets authority in the development of a country's financial markets six QUEST ets QUESTION 12 a) Describe the benefits to a country of integrating its financial markets with those of other country. QUESTION 13 (b) a) Distinguish between primary and secondary securities market. b) "Despite the large investment in the stock exchange and the various government incentives, only a few companies are listed at the stock exchange of the three East Africa Countries", This was the opening remark by the guest speaker in a seminar whose theme was "Developing our capital market." Required: i) The advantage of being listed at the stock exchange. ii) Highlight four factors that may hinder companies from being listed at the stock exchange. QUESTION 14 a) Briefly explain how the "Dow theory " views the movement of the market prices of shares traded on a stock exchange b) Identify and briefly explain the factors that must be taken into account in the design and construction of a market index for shares c) Joseph Kimeu is trying to determine the value of Bidii Ltd's ordinary shares. The earnings growth rate over his planned six-year holding period is estimated to be 10% and the dividend payout ration in 60%. The ending price earnings (P/E) ration is expected to be 20 and the current earning per share are Sh. 4. The required rate of return for this share is 15%. Required Compute the market price of Bidii Lid's ordinary share QUESTION 15 b) Briefly describe the three forms of capital markets efficiency. are familiar with. Highlight four factors that may underlie the low rate of listing of companies in a stock exchange you QUESTION 16 (a) Highlight four advantages and disadvantages to a company of being listed on a stock exchange. (b) In relation to the stock exchange" Section 3 F.MQUESTION 1 25 points Save Answer Select the correct word(s) from the drop down menu to finish the following sentences: Central Park in New York City is an open space for any visitor. Therefore, Central Park is . Because Central Park is so big, many people can walk around and enjoy the scenery. This benefit of the park is . Considering those two characteristics, Central park is a QUESTION 2 25 points Save Answer Select the correct word(s) from the drop down menu to finish the following sentences: Chocolate cookies are sold at supermarkets, and sellers only provide cookies to the consumers who purchase them. Therefore, cookies are . If I eat a cookie, it disappears, and the same cookie cannot be consumed by another person. Thus, cookies are C. Considering those two characteristics of cookies, cookies are QUESTION 3 25 points Save Answer Select the correct word(s) from the drop down menu to finish the following sentences: Fish in the ocean can be caught by anyone, and it is difficult to prevent people from fishing, in this sense, fish in the oceans are C. If I catch a fish, that means there is one less fish in the sea for someone else to catch. Therefore, fish are . Considering those two characteristics, fish in the ocean are QUESTION 4 25 points Save Answer Select the correct word(s) from the drop down menu to finish the following sentences: Movies in the movie theater can only be watched by people who purchase tickets. Therefore, movies in movie theatres If I buy a movie ticket and the theatre is not full, other people in the movie theater can watch the movie at the same time. In this sense, the movies in movie theatres are C. Considering those two characteristics, movies in the movie theaters are