Company T has 1,000 million shares in issue with a current share price of $10 each.
Company V has 300 million shares in issue with a current share price of $5 each.
Company T is considering acquiring Company V.
Total synergy gains of $100 million have been estimated.
The purchase of Company V's shares would be by cash at a 10% premium above the
current share price.
In seeking approval for the acquisition, the likely reaction from T's shareholders will be:

 A company is considering the issue of a convertible bond compared to a straight bond
issue (non-convertible bond).
Director A is concerned that issuing a convertible bond will upset the shareholders for the
following reasons:
• it will dilute their control
• the interest payments will be higher therefore reducing liquidity
• it will increase the gearing ratio therefore increasing financial risk
Director B disagrees, and is preparing a board paper to promote the issue of the
convertible bond rather than a non-convertible. 

 Advise the Director B which THREE of the following statements should be included in his
board paper to promote the issue of the convertible bond? 

A company's dividend policy is to pay out 50% of its earnings.
Its most recent earnings per share was $0.50, and it has just paid a dividend per share of
$0.25.
Currently, dividends are forecast to grow at 2% each year in perpetuity and the cost of
equity is 10.5%.
In order to grow its earnings and dividends, the company is considering undertaking a new investment funded entirely by debt finance. If the investment is undertaken:
• Its cost of equity will immediately increase to 12% due to the increased finance risk.
• Its earnings and dividends will immediately commence growing at 4% each year in
perpetuity.
Which of the following is the expected percentage change in the share price if the new
investment is undertaken?

A government is currently considering the privatisation of the national airline. The shares
are to be offered to the public via a fixed price Initial Public Offering (IPO).

Which THREE of the following statements are correct?

Company WWW is identical in all operating and risk characteristics to Company ZZZ. but
their capital structures differ. Company WWW and Company ZZZ both pay corporate
income tax at 20%
Company WWW has a gearing ratio (debt: equity) of 1:3 Its pre-tax cost of debt is 6%.
Company ZZZ Is all-equity financed. Its cost of equity is 15%
What is the cost of equity tor Company WWW?

 Company A plans to acquire a minority stake in Company B.
The last available share price for Company B was $0.60.
Relevant data about Company B is as follows:
• A dividend per share of $0.08 has just been paid
• Dividend growth is expected to be 2%
• Earnings growth is expected to be 4%
• The cost of equity is 15%
• The weighted average cost of capital is 13%
Using the dividend growth model, what would be the expected change in share price? 

 A company based in Country D, whose currency is the D$, has an objective of maintaining
an operating profit margin of at least 10% each year.
Relevant data:
• The company makes sales to Country E whose currency is the E$. It also makes sales
to Country F whose currency is the F$.
• All purchases are from Country G whose currency is the G$.
• The settlement of all transactions is in the currency of the customer or supplier.
Which of the following changes would be most likely to help the company achieve its
objective?

Which of the following explains an aim of integrated reporting in accordance
with The International <IR> Framework as issued by the International Integrated Reporting
Council?