The expected Earnings before 30% Required: (A) (B) Decide which of the three propositions should be implemented, using earnings per share as a basis for your decision. Should your decision be based exclusively on earnings per share, or should other factors be considered? Calculate the degree of financial leverage resulting from each of the propositions. (C) 15. What dividend policy/policies would the following investors be attracted to and why? a. A 33 year old executive. b. A 60 year old self-funded retiree C. A superannuation fund. 16. Explain Scenario Analysis and Sensitivity Analysis. What role do they play in financial performance forecasting? 17. 'By ranking risk, management is better able to determine the strategy that will be most effective. Using standard risk management tools such as the ISO 31000 risk management process and its corresponding risk matrix will allow organisations to prioritise risks.' No 03188 Author: WAIES Current Version: 3.1