The name of the course is corporate finance
Course: Corporate Finance Code: BAC411 Time Allowed: 1 ir 30 minutes Marks: 15 Question One (20 Marks) The dividends and earnings of PrinceGee Photography over the last five years have been as follows: The company is financed entirely by equity and the Market value of the shares is K335,000 at K335 per share ex-div. i. What dividend Policy does PrinceGee Photography follow? Support your answer with calculations and evidence ( 7 Marks) ii. What is the book value of the shares of PrinceGee Photography (3 Marks) iii. What is the cost of Equity ( 10 Marks) Question Two (10 Marks) i. Briefly discuss the differences between Transaction risk, translation risk and economic ii. Explain how inflation and interest rates can be used to forecast exchange rates ( 4 Marks) Question Three (10 Marks) A hostile takeover is when a company or a shareholder tries to gain control of a ta sidestepping the company's management and board of directors, and going directly to its shareholders sidestepping the company's management and board of directors, and going directly to its shareholders i. What types of actions might the management of a firm take to fight a hostile acquisition bid from an unwanted suitor? (4 Marks) - PorSon Rof fius/ white Kmizlt, ii. How do the target firm shareholders benefit from the defensive tactics of their management team? (3 Marks) iii. How are the target firm shareholders harmed by such actions? Explain. (3 Marks) Course: Corporate Finance Code: BAC411 Time Allowed: 1 ir 30 minutes Marks: 15 Question One (20 Marks) The dividends and earnings of PrinceGee Photography over the last five years have been as follows: The company is financed entirely by equity and the Market value of the shares is K335,000 at K335 per share ex-div. i. What dividend Policy does PrinceGee Photography follow? Support your answer with calculations and evidence ( 7 Marks) ii. What is the book value of the shares of PrinceGee Photography (3 Marks) iii. What is the cost of Equity ( 10 Marks) Question Two (10 Marks) i. Briefly discuss the differences between Transaction risk, translation risk and economic ii. Explain how inflation and interest rates can be used to forecast exchange rates ( 4 Marks) Question Three (10 Marks) A hostile takeover is when a company or a shareholder tries to gain control of a ta sidestepping the company's management and board of directors, and going directly to its shareholders sidestepping the company's management and board of directors, and going directly to its shareholders i. What types of actions might the management of a firm take to fight a hostile acquisition bid from an unwanted suitor? (4 Marks) - PorSon Rof fius/ white Kmizlt, ii. How do the target firm shareholders benefit from the defensive tactics of their management team? (3 Marks) iii. How are the target firm shareholders harmed by such actions? Explain
