当前位置： 找题吧 > 
[试题]

JJG Co is planning to raise $15 million of new finance for a major expansion of existing business and is considering a rights issue, a placing or an issue of bonds. The corporate objectives of JJG Co, as stated in its Annual Report, are to maximise the wealth of its shareholders and to achieve continuous growth in earnings per share. Recent financial information on JJG Co is as follows:

Required:(a) Evaluate the financial performance of JJG Co, and analyse and discuss the extent to which the company has achieved its stated corporate objectives of:(i) maximising the wealth of its shareholders;(ii) achieving continuous growth in earnings per share.

Note: up to 7 marks are available for financial analysis.(12 marks)(b) If the new finance is raised via a rights issue at $7·50 per share and the major expansion of business has

not yet begun, calculate and comment on the effect of the rights issue on:(i) the share price of JJG Co;(ii) the earnings per share of the company; and(iii) the debt/equity ratio. (6 marks)(c) Analyse and discuss the relative merits of a rights issue, a placing and an issue of bonds as ways of raising the finance for the expansion. (7 marks)

参考答案与解析：

相关试题

JJG Co is planning to raise $15 million

[试题]JJG Co is planning to raise $15 million of new finance for a major expansion of existing business and is considering a rights issue, a placing or an issue of bonds. The corporate objectives of JJG Co, as stated in its Annual Report, are to maximise th

  • 查看答案

    • A company is planning a $50 million expansion. The expansion is to be financed by selling $20 millio

    [单选题]A company is planning a $50 million expansion. The expansion is to be finan

  • 查看答案

    • Northern Financial Co. has a BVPS of $5. The company has announced a $15 million share buyback. The

    [单选题]Northern Financial Co. has a BVPS of $5. The company has announced a $15 mi

  • 查看答案

    • Forand Co. currently sells 2 million units at $350 per unit. Fixed operating costs are $100 million

    [单选题]Forand Co. currently sells 2 million units at $350 per unit. Fixed operatin

  • 查看答案

    • Barap.Co has 2 million shares outstanding and this year's earnings are $4 million. The company

    [单选题]Barap.Co has 2 million shares outstanding and this year's earnings are $4 m

  • 查看答案

    • ________________[A] raise [B] add [C] ta

    [单选题]________________[A] raise[B] add[C] take[D] keep

  • 查看答案

    • Increased air （） will raise scavenge eff

    [单选题]Increased air （） will raise scavenge efficiency and allow a greater mass of air to be compressed； more fuel may now be burned giving an increased power.A . specific volumeB . densityC . viscosityD . calorific value

  • 查看答案

    • His efforts to raise money for his progr

    [单选题]H．is efforts to raise money for his program were because no one showed any intention to take a cent out of their pockets.A． in place B. in sight C. in effect D. in vain

  • 查看答案

    • A raise B add C take D keep

    [单选题]A． raise B add C take D keep

  • 查看答案

    • A project that requires an initial investment of €5 million is expected to pay €22 million at the en

    [单选题]A project that requires an initial investment of €5 million is expected to

  • 查看答案

    • JJG Co is planning to raise $15 million