F3 Exam Question 76

Which of the following statements about companies seeking a stock market listing is correct?
  • F3 Exam Question 77

    XYZ has a variable rate loan of $200 million on which it is paying interest of Liber ' 3%.
    XYZ entered into a swap with AG bank to convert this to a fixed rate 8% loan. AB bank charges an annual commission of 0.4% for making this arrangement Calculate the net payment from KYZ to AB bank at the end of the first year if Libor was 2% throughout the year.
    Give your answer in $ million, to one decimal place.

    F3 Exam Question 78

    A company's directors plan to increase gearing to come in line with the industry average of 40%. They need to know what the effect will be on the company's WACC.
    According to traditional theory of gearing the WACC is most likely to:

    F3 Exam Question 79

    A company is considering either directly exporting its product to customers in a foreign country or setting up a subsidiary in the foreign country to manufacture and supply customers in that country.
    Details of each alternative method of supplying the foreign market are as follows:

    There is an import tax on product entering the foreign country of 10% of sales value.
    This import duty is a tax-allowable deduction in the company's domestic country.
    The exchange rate is A$1.00 = B$1.10
    Which alternative yields the highest total profit after taxation?
  • F3 Exam Question 80

    A company with a market capitalisation of S50million is considering raising $1 million debt to fund a new
    10-year capital investment protect
    The value of this issue is considered to be small in comparison to the company's market capitalisation The company is considering whether to raise the debt finance by either a "bond private placing' or a 'public bond issue.
    Which THREE of the following statements are correct?