Questions from Financial Management

Q: An investment business is considering taking a minority stake in two businesses

An investment business is considering taking a minority stake in two businesses, Monaghan plc and Cavan plc. Both are in the same line of business and both are listed on the London Stock Exchange. Mon...

Q: Eco-Energy Appliances Ltd started operations on 1 January and has

Eco-Energy Appliances Ltd started operations on 1 January and has produced the following forecasts for annual sales revenue: The following additional information is also available: 1.Operating profit...

Q: Alpha plc, a dynamic, fast-growing business in microelectronics

Alpha plc, a dynamic, fast-growing business in microelectronics, has just made a bid of 17 of its own shares for every 20 shares of Beta plc, which manufactures a range of electric motors. Financial s...

Q: The senior management of Galbraith Ltd is negotiating a management buyout of

The senior management of Galbraith Ltd is negotiating a management buyout of the business from the existing shareholders. The most recent financial statements of Galbraith Ltd are as follows: Statemen...

Q: Conday and Co. Ltd has been in operation for three years

Conday and Co. Ltd has been in operation for three years and produces antique reproduction furniture for the export market. The most recent set of financial statements for the business is set out as f...

Q: The directors of Helena Beauty Products Ltd have been presented with the

The directors of Helena Beauty Products Ltd have been presented with the following abridged financial statements: Income statement for the year ended 30 September Statement of financial position as a...

Q: Threads Limited manufactures nuts and bolts, which are sold to industrial

Threads Limited manufactures nuts and bolts, which are sold to industrial users. The abbreviated financial statements for 2015 and 2016 are as follows: Income statements for the year ended 30 June S...

Q: Genesis Ltd was incorporated three years ago and has grown rapidly since

Genesis Ltd was incorporated three years ago and has grown rapidly since then. The rapid rate of growth has created problems for the business, which the directors have found difficult to deal with. Re...

Q: Arkwright Mills plc is considering expanding its production of a new yarn

Arkwright Mills plc is considering expanding its production of a new yarn, code name X15. The plant is expected to cost £1 million and have a life of five years and a nil residual value. It wi...

Q: From what sources can a company raise capital? Do these different

From what sources can a company raise capital? Do these different sources of capital all charge the same rate? Why or why not?