May 2014 diet: the questions by course

Strategic Financial Management May 2014 · 8 questions

• Objective extras: Multiple-choice 6, 7 and 14 and short answers 12 and 15: Multiple-choice 6 asked for the name of the line linking expected return to beta (the secu...
• Theory extras: Governance questions: The May 2014 paper asked in the multiple-choice section which stakeholders governance aims to promote and what is not require...
• Theory 1: The 15-mark compulsory question asked for the value of Wazobia Limited by three methods and two limitations of each. The model answer adjusts three...
• Theory 2: The 15-mark question gave two identical companies that differ in capital structure and asked what an investor holding 4% of the geared company shou...
• Theory 3: The May 2014 paper asked (15 marks) why a quoted company would want to know the make-up and objectives of its shareholders, and five advantages to ...
• Theory 4: The 15-mark question noted that annual reports are seen as important but that share prices do not react in the short term to their publication. Par...
• Theory 5: The May 2014 paper asked (9 marks) how the aim of maximising firm value can be compromised by conflicts between managers and other stakeholders. Th...
• Theory 6: Question 6 included a forward discount calculation, with the dollar at a discount of about 3.7%. Practise the premium and discount rules in the sec...

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