(c) State one advantage to a business of keeping its working capital cycle as short as possible.(2 Marks)
题目
(c) State one advantage to a business of keeping its working capital cycle as short as possible.
(2 Marks)
相似考题
更多“(c) State one advantage to a business of keeping its working capital cycle as short as possible.(2 Marks)”相关问题
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第1题：
(iii) A statement on the importance of confidentiality in the financing of the early stage working capital needs
and an explanation of how this conflicts with the duty of transparency in matters of corporate
governance. (6 marks)
Professional marks for layout, logical flow and persuasiveness of the statement. (4 marks)
正确答案：
(iii) Importance of confidentiality in the financing of the project and the normal duty of transparency.
I have been asked to include a statement in my remarks on the balance between our duty to be transparent whenever
possible and the need for discretion and confidentiality in some situations. In the case of our initial working capital needs
for the Giant Dam Project, the importance of confidentiality in financing is due to the potential for adverse publicity that
may arise for the lender. It is important that R&M have the project adequately financed, especially in the early stages
before the interim payments from the client become fully effective.
In general, of course, we at R&M attempt to observe the highest standards of corporate governance and this involves
adopting a default position of transparency rather than concealment wherever possible. We recognise that transparency
is important to underpin investor confidence and to provide investors with the information they need to make fund
allocation decisions.
Whilst it is normal to disclose the amount of debt we carry at any given point (on the balance sheet), it is rarely normal
practice to disclose the exact sources of those loans. In the case of the financing of initial working capital for the Giant
Dam Project, I’m sure you will realise that in this unique situation, disclosure of the lender’s identity could threaten the
progress of the project. For this reason we must resist any attempts to release this into the public domain. We are aware
of one pressure group that is actively seeking to discover this information in order to disrupt the project’s progress and
we shall be taking all internal measures necessary to ensure they do not obtain the information.
Thank you for listening. -
第2题：
(ii) State, giving reasons, the tax reliefs in relation to inheritance tax (IHT) and capital gains tax (CGT) which
would be available to Alasdair if he acquires the warehouse and leases it to Gallus & Co, rather than to
an unconnected tenant. (4 marks)
正确答案：
(ii) Apart from the fact that Alasdair can keep an eye on his tenant, the main advantages are twofold:
IHT: If the firm are the tenants, the property will be land and buildings used in a business carried on by a partnership
in which the donor is a partner. Thus, Alasdair will be able to claim business property relief (BPR) at a rate of 50%
so long as he remains a partner in the firm. However, this relief would not be available until Alasdair has owned
the property for at least two years from his firm taking up the tenancy.
CGT: As Alasdair is a partner in the firm using the building, it will also be a qualifying asset for the purposes of rollover
relief on any gains arising from the disposal of the property. Assuming that Alasdair acquires a replacement asset
which will be used in the trade, the gain on sale can be deferred against the tax base cost of the replacement asset.
In the event that rollover relief cannot be used, any gains on disposal will be subject to business asset taper relief. -
第3题：
(d) Explain how Gloria would be taxed in the UK on the dividends paid by Bubble Inc and the capital gains tax
and inheritance tax implications of a future disposal of the shares. Clearly state, giving reasons, whether or
not the payment made to Eric is allowable for capital gains tax purposes. (9 marks)
You should assume that the rates and allowances for the tax year 2005/06 apply throughout this question.
正确答案：
(d) UK tax implications of shares in Bubble Inc
Income tax
Gloria is UK resident and is therefore subject to income tax on her worldwide income. However, because she is non-UK
domiciled, she will only be taxed on the foreign dividends she brings into the UK.
Dividends brought into the UK will be grossed up for any tax paid in Oceania. The gross amount is taxed at 10% if it falls
into the starting or basic rate band and at 321/2% if it falls into the higher rate band. The tax suffered in Oceania is available
for offset against the UK tax liability. The offset is restricted to a maximum of the UK tax on the dividend income.
Capital gains tax
Individuals are subject to capital gains tax on worldwide assets if they are resident or ordinarily resident in the UK. However,
because Gloria is non-UK domiciled and the shares are situated abroad, the gain is only taxable to the extent that the sales
proceeds are brought into the UK. Any tax suffered in Oceania in respect of the gain is available for offset against the UK
capital gains tax liability arising on the shares.
Any loss arising on the disposal of the shares would not be available for relief in the UK.
In computing a capital gain or allowable loss, a deduction is available for the incidental costs of acquisition. However, to be
allowable, such costs must be incurred wholly and exclusively for the purposes of acquiring the asset. The fee paid to Eric
related to general investment advice and not to the acquisition of the shares and therefore, would not be deductible in
computing the gain.
Taper relief will be at non-business asset rates as Bubble Inc is an investment company.
Inheritance tax
Assets situated abroad owned by non-UK domiciled individuals are excluded property for the purposes of inheritance tax.
However, Gloria will be deemed to be UK domiciled (for the purposes of inheritance tax only) if she has been resident in the
UK for 17 out of the 20 tax years ending with the year in which the disposal occurs.
Gloria has been running a business in the UK since June 1992 and would therefore, appear to have been resident for at least
15 tax years (1992/93 to 2006/07 inclusive).
If Gloria is deemed to be UK domiciled such that the shares in Bubble Inc are not excluded property, business property relief
will not be available because Bubble Inc is an investment company. -
第4题：
(b) Prepare a reasoned explanation of how any capital gains tax arising in the UK on the sale of the paintings
can be minimised. (2 marks)
正确答案：
(b) Minimising capital gains tax on the sale of the paintings
Galileo will become resident and ordinarily resident from the date he arrives in the UK as he intends to stay for more than
three years. Prior to that date he will be neither resident nor ordinarily resident such that he will not be subject to UK capital
gains tax.
Galileo should sell the paintings before he leaves Astronomeria; this will avoid UK capital gains tax completely.
Tutorial note
The gains would be taxable on the remittance basis if the paintings were sold after Galileo’s arrival in the UK. However, this
would not help Galileo to minimise the capital gains tax due as he needs to bring the sales proceeds into the UK in order
to purchase a house. -
第5题：
Nowadays a private business usually obtains its working capital through a commercial bank.
A．Right
B．Wrong
C．Doesn't say
正确答案：B
解析：第三句话指出Private sector firms borrow...even fir the working capital requirements.意为货币市场代替了银行为企业运营资金的功能，银行作为中介人，在这业务上也处于收缩状态。 -
第6题：
PV Co is evaluating an investment proposal to manufacture Product W33, which has performed well in test marketing trials conducted recently by the company’s research and development division. The following information relating to this investment proposal has now been prepared.
Initial investment $2 million
Selling price (current price terms) $20 per unit
Expected selling price inflation 3% per year
Variable operating costs (current price terms) $8 per unit
Fixed operating costs (current price terms) $170,000 per year
Expected operating cost inflation 4% per year
The research and development division has prepared the following demand forecast as a result of its test marketing trials. The forecast reflects expected technological change and its effect on the anticipated life-cycle of Product W33.
It is expected that all units of Product W33 produced will be sold, in line with the company’s policy of keeping no inventory of finished goods. No terminal value or machinery scrap value is expected at the end of four years, when production of Product W33 is planned to end. For investment appraisal purposes, PV Co uses a nominal (money) discount rate of 10% per year and a target return on capital employed of 30% per year. Ignore taxation.
Required:
(a) Identify and explain the key stages in the capital investment decision-making process, and the role of
investment appraisal in this process. (7 marks)
(b) Calculate the following values for the investment proposal:
(i) net present value;
(ii) internal rate of return;
(iii) return on capital employed (accounting rate of return) based on average investment; and
(iv) discounted payback period. (13 marks)
(c) Discuss your findings in each section of (b) above and advise whether the investment proposal is financially acceptable. (5 marks)
正确答案：
(a)Thekeystagesinthecapitalinvestmentdecision-makingprocessareidentifyinginvestmentopportunities,screeninginvestmentproposals,analysingandevaluatinginvestmentproposals,approvinginvestmentproposals,andimplementing,monitoringandreviewinginvestments.IdentifyinginvestmentopportunitiesInvestmentopportunitiesorproposalscouldarisefromanalysisofstrategicchoices,analysisofthebusinessenvironment,researchanddevelopment,orlegalrequirements.Thekeyrequirementisthatinvestmentproposalsshouldsupporttheachievementoforganisationalobjectives.ScreeninginvestmentproposalsIntherealworld,capitalmarketsareimperfect,soitisusualforcompaniestoberestrictedintheamountoffinanceavailableforcapitalinvestment.Companiesthereforeneedtochoosebetweencompetinginvestmentproposalsandselectthosewiththebeststrategicfitandthemostappropriateuseofeconomicresources.AnalysingandevaluatinginvestmentproposalsCandidateinvestmentproposalsneedtobeanalysedindepthandevaluatedtodeterminewhichofferthemostattractiveopportunitiestoachieveorganisationalobjectives,forexampletoincreaseshareholderwealth.Thisisthestagewhereinvestmentappraisalplaysakeyrole,indicatingforexamplewhichinvestmentproposalshavethehighestnetpresentvalue.ApprovinginvestmentproposalsThemostsuitableinvestmentproposalsarepassedtotherelevantlevelofauthorityforconsiderationandapproval.Verylargeproposalsmayrequireapprovalbytheboardofdirectors,whilesmallerproposalsmaybeapprovedatdivisionallevel,andsoon.Onceapprovalhasbeengiven,implementationcanbegin.Implementing,monitoringandreviewinginvestmentsThetimerequiredtoimplementtheinvestmentproposalorprojectwilldependonitssizeandcomplexity,andislikelytobeseveralmonths.Followingimplementation,theinvestmentprojectmustbemonitoredtoensurethattheexpectedresultsarebeingachievedandtheperformanceisasexpected.Thewholeoftheinvestmentdecision-makingprocessshouldalsobereviewedinordertofacilitateorganisationallearningandtoimprovefutureinvestmentdecisions. -
第7题：
Name one major advantage of transporting gas under refrigeration．
A.It increases its volume
B.It reduces its volume
C.It has less product per volume
D.None of the above
正确答案：B
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第8题：
One of its tasks is to get business information and （） new business opportunities for its members.
- A、finding
- B、to find
- C、finds
- D、find
正确答案:D -
第9题：
单选题One of its tasks is to get business information and （） new business opportunities for its members.Afinding
Bto find
Cfinds
Dfind
正确答案： D解析： 暂无解析 -
第10题：
问答题题目要求： In this part of the test, you are asked to give a short talk on a business topic. You have to choose one of the topics from the three below and then talk for about one minute. You have one minute to prepare your ideas.Practice 1 (The candidate chooses one topic and speaks about it for one minute.) A How to negotiate successfully when we are in business? B In business, what important role does the communication take? C What kinds of skills shall the technical writers have?正确答案： 【参考范例】
If you choose A:
It is a key skill in any business to negotiate successfully so as to reach agreements with other people or parties. The negotiation could be done with a buyer or a seller and it will always involve an element of compromise, no matter what. But, when entering negotiations, it is important to keep in mind that to negotiate and make agreements successfully is almost impossible unless you think you can afford to ‘lose’ or walk away from on offer. The result will be you avoiding asking more than what you suppose the other side will give without a dispute. Consequently, you will become a passive observer, while the other side will dictate the terms.
If you choose B:
Communication is one of the most important features in any business. Good communications are indispensable at any stage of the business process.
Within individual company, internal communications happen at, and between the different levels. Directors will communicate with one another with regard to the company’s overall strategy. They communicate their plans to managers, and the managers then inform the other employees. Negotiations are usually conducted in terms of payment and working conditions. Managers try to boost morale and motivation with good communication. Employees also communicate with one another, over certain matters, for instance production and wages.
Reliable and effective communication is instrumental when it comes to efficient management of a company.
If you choose C:
Firstly, technical writers should be able to write well, which means more than just knowing the basics of spelling, grammar and punctuation. The ability to condense, organize and generalize complicated information to make it easier to understand is also very important. A good technical writer must also be capable of handling tight deadlines. As far as career prospects go, with the valuable experience gained, many technical writers actually have the chance to take on management roles. Then they will be responsible for the work of other writers within a particular company; or they may want to become contractors, in other words, selling their services to companies at an hourly rate through an agency which employs many freelance technical writers.解析： 暂无解析 -
第11题：
问答题Passage 14Questions 8—12 ● Read the article below about GE. ● Choose the best sentence from the opposite page to fill each of the gaps. ● For each gap (8—12), mark one letter (A—G) on your Answer Sheet. ● Do not use any letter more than once. ● There is an example at the beginning, (0).A slipping crown For decades America’s General Electric (GE) has worn its AAA credit rating as a badge of pride. The company has also used it to mint money in its financial-services business, GE Capital. No longer (0)______. That added insult to the injury that GE has already suffered. Last year the outfit generated a profit of $8.6 billion or almost 48％ of GE’s total earnings. By exploiting its AAA rating, GE Capital was able to raise capital cheaply and then deploy it to fund everything from commercial-property and home loans to credit-card lending and insurance. (8)______. Announcing its decision to downgrade the business, S&P predicted rising credit losses in coming months in several areas of GE Capital’s portfolio. Although GE’s demotion from AAA was bad news, it triggered a rise in the firm’s shares, which had recently been trading at about the same price as one of the light bulbs that the company makes. (9)______. They may also have taken comfort from the agency’s conclusion that GE’s industrial businesses should continue to pump oodles of cash, in spite of the global downturn. Yet some financial analysts are still fretting that GE Capital’s portfolio may contain more nasty surprises. (10)______. They also wonder out loud whether Moody’s, another rating agency, will take a more pessimistic view of GE’s prospects when it finishes a review of the AAA rating that it still assigns to the firm. Next week GE plans to hold an in-depth briefing on the state of the assets in GE Capital’s portfolio, which will help to dispel the cloud still hanging over the business. It has also been telling anyone who will listen that it doesn’t expect this week’s downgrade to have a significant impact on its business, though it does plan to keep shrinking GE Capital’s activities so that the unit represents no more than 30％ of total profit. (11)______. GE is sitting on $48 billion of cash and has already raised over 90％ of its long-term debt needs for this year—no mean feat in a dire credit market. The company also plans to slash its dividend from the second half of 2009, which it reckons to conserve an additional $9 billion a year on an ongoing basis. (12)______.. In his annual letter to shareholders published recently, Mr. Immelt admitted that GE’S reputation had been “tarnished”. A. This has made some of the company’s small investors apoplectic; they have grown used to juicy dividend payments. B. Jeff Immelt, GE’s CEO, has said that the overall company will continue to manage itself like a AAA-rated firm, notably by keeping plenty of liquidity to hand. C. Resolving lingering doubts over GE Capital quickly will be essential if one of America’s most iconic companies is to regain its shine. D. They point out that the business does not mark many of its assets to their market price—a practice that has blown huge holes in the finances of many big banks. E. No doubt investors were relieved that S&P didn’t make an even deeper cut in the company’s rating. F. But the chaos triggered by the credit crunch has taken the shine off GE’s cash machine, which has seen some of its property and other loans turn sour. G. S&P stripped the company and its financial arm of their top-notch ratings, downgrading them to AA-plus.正确答案： 8.F 该空前一句指出GE Capital 因其信用评级能够低廉地筹集资金,后一句则表明S&P预测了GE Capital投资组合各个领域的亏损,因此空缺处的句子应该起到转折的作用,故选项F符合题意。
9.E 该空前一句提到一度十分低迷的GE股价上涨,接着应该指明原因,且该空后一句“also”一词暗示空缺句也应为上涨的原因,故选E。
10.D 空缺处的前句与后句都指出了金融分析家的观点,并且该空的后一句出现“also”一词,由此可推断空缺句与前句的关系应该为可为解释或者并列,故选D。
11.B 该断的主要内容为阐述降级后GE的一系列做法。空缺处下一句出现的“$48 billion of cash”与B句中GE总裁声明讲保留充盈的流动构成解释关系,故选B。
12.A 空缺句前一句指明GE计划从2009下半年度起削减股东红利,A中的this指代前句出现的“to slash its dividend”与前句构成因果关系,故选A。解析： 暂无解析 -
第12题：
单选题Online retailer Dressmart _______.Aproved right to do too much in a short time period
Bcarried out the plan of doing its business at home first
Cmade great profits by expanding its business abroad
Dcontracted its business from abroad before complete failure
正确答案： D解析：
细节题。第六段最后一句提到“Dressmart, on the verge of bankruptcy and searching for a backer, has now scaled back and operates only in Sweden.”（Dressmart曾经濒临破产而需要寻找支持者，现已缩小规模，只在瑞典运作了）。scale back意为“按比例缩减，相应缩减”，和选项D中的contracted表达意思相一致。 -
第13题：
(b) (i) State FOUR reasons why payback period is widely used by organisations in the capital investment
appraisal process. (2 marks)
正确答案：
(b) (i) Payback period is widely used by organisations in the capital investment appraisal process due to the following reasons:
– It is easy to calculate and understand
– There is a lack of understanding of more sophisticated techniques which take into consideration the time value of
money
– Payback may be expedient for organisations who need to recover their capital outlay quickly due to the fact that
they are experiencing liquidity problems
– Payback is appropriate for smaller investments which do not warrant the use of more sophisticated techniques
– Payback reduces uncertainty by focusing on nearer and therefore more certain cash flows. -
第14题：
(ii) Explain the income tax (IT), national insurance (NIC) and capital gains tax (CGT) implications arising on
the grant to and exercise by an employee of an option to buy shares in an unapproved share option
scheme and on the subsequent sale of these shares. State clearly how these would apply in Henry’s
case. (8 marks)
正确答案：
(ii) Exercising of share options
The share option is not part of an approved scheme, and will not therefore enjoy the benefits of such a scheme. There
are three events with tax consequences – grant, exercise and sale.
Grant. If shares or options over shares are sold or granted at less than market value, an income tax charge can arise on
the difference between the price paid and the market value. [Weight v Salmon]. In addition, if options can be exercised
more than 10 years after the date of the grant, an employment income charge can arise. This is based on the market
value at the date of grant less the grant and exercise priced.
In Henry’s case, the options were issued with an exercise price equal to the then market value, and cannot be exercised
more than 10 years from the grant. No income tax charge therefore arises on grant.
Exercise. On exercise, the individual pays the agreed amount in return for a number of shares in the company. The price
paid is compared with the open market value at that time, and if less, the difference is charged to income tax. National
insurance also applies, and the company has to pay Class 1 NIC. If the company and shareholder agree, the national
insurance can be passed onto the individual, and the liability becomes a deductible expense in calculating the income
tax charge.
In Henry’s case on exercise, the difference between market value (￡14) and the price paid (￡1) per share will be taxed
as income. Therefore, ￡130,000 (10,000 x (￡14 – ￡1)) will be taxed as income. In addition, national insurance will
be chargeable on the company at 12·8% (￡16,640) and on Henry at the rate of 1% (￡1,300).
Sale. The base cost of the shares is taken to be the market value at the time of exercise. On the sale of the shares, any
gain or loss arising falls under the capital gains tax rules, and CGT will be payable on any gain. Business asset taper
relief will be available as the company is an unquoted trading company, but the relief will only run from the time that
the share options are exercised – i.e. from the time when the shares were acquired.
In Henry’s case, the sale of the shares will immediately follow the exercise of the option (6 days later). The sale proceeds
and the market value at the time of exercise are likely to be similar; thus little to no gain is likely to arise. -
第15题：
5 (a) Carver Ltd was incorporated and began trading in August 2002. It is a close company with no associated
companies. It has always prepared accounts to 31 December and will continue to do so in the future.
It has been decided that Carver Ltd will sell its business as a going concern to Blade Ltd, an unconnected
company, on 31 July 2007. Its premises and goodwill will be sold for ￡2,135,000 and ￡290,000 respectively
and its machinery and equipment for ￡187,000. The premises, which do not constitute an industrial building,
were acquired on 1 August 2002 for ￡1,808,000 and the goodwill has been generated internally by the
company. The machinery and equipment cost ￡294,000; no one item will be sold for more than its original cost.
The tax adjusted trading profit of Carver Ltd in 2007, before taking account of both capital allowances and the
sale of the business assets, is expected to be ￡81,000. The balance on the plant and machinery pool for the
purposes of capital allowances as at 31 December 2006 was ￡231,500. Machinery costing ￡38,000 was
purchased on 1 March 2007. Carver Ltd is classified as a small company for the purposes of capital allowances.
On 1 August 2007, the proceeds from the sale of the business will be invested in either an office building or a
portfolio of UK quoted company shares, as follows:
Office building
The office building would be acquired for ￡3,100,000; the vendor is not registered for value added tax (VAT).
Carver Ltd would borrow the additional funds required from a UK bank. The building is let to a number of
commercial tenants who are not connected with Carver Ltd and will pay rent, in total, of ￡54,000 per calendar
quarter, in advance, commencing on 1 August 2007. The company’s expenditure for the period from 1 August
2007 to 31 December 2007 is expected to be:
￡
Loan interest payable to UK bank 16,000
Building maintenance costs 7,500
Share portfolio
Shares would be purchased for the amount of the proceeds from the sale of the business with no need for further
loan finance. It is estimated that the share portfolio would generate dividends of ￡36,000 and capital gains, after
indexation allowance, of ￡10,000 in the period from 1 August 2007 to 31 December 2007.
All figures are stated exclusive of value added tax (VAT).
Required:
(i) Taking account of the proposed sale of the business on 31 July 2007, state with reasons the date(s) on
which Carver Ltd must submit its corporation tax return(s) for the year ending 31 December 2007.
(2 marks)
正确答案：
(a) (i) Due date for submission of corporation tax return
Carver Ltd intends to cease trading on 31 July 2007. This will bring to an end the accounting period that began on
1 January 2007. A new accounting period will commence on 1 August 2007 and end on the company’s accounting
reference date on 31 December 2007.
Carver Ltd is required to submit its corporation tax return by the later of:
– one year after the end of its accounting period; and
– one year after the end of the period of account in which the last day of the accounting period falls.
Accordingly, the company must submit its corporation tax returns for both accounting periods by 31 December 2008. -
第16题：
听力原文：Commercial banks are mainly to provide short-term loans for the capital market with the acquired deposits and the funds from other channels.
(2)
A．Commercial banks mainly provide short-term loans for the capital market.
B．The capital market mainly depends on the acquired deposits and the funds from other channels.
C．Short-term loans are mainly from the acquired deposits and the funds from other channels.
D．Commercial banks mainly depend on the capital market for deposits and the funds.
正确答案：A
解析：单句意思为“商业银行主要是利用其所拥有的存款及通过其他渠道获得的资金来源为资本市场提供短期贷款。” -
第17题：
KFP Co, a company listed on a major stock market, is looking at its cost of capital as it prepares to make a bid to buy a rival unlisted company, NGN. Both companies are in the same business sector. Financial information on KFP Co and NGN is as follows:
NGN has a cost of equity of 12% per year and has maintained a dividend payout ratio of 45% for several years. The current earnings per share of the company is 80c per share and its earnings have grown at an average rate of 4·5% per year in recent years.
The ex div share price of KFP Co is $4·20 per share and it has an equity beta of 1·2. The 7% bonds of the company are trading on an ex interest basis at $94·74 per $100 bond. The price/earnings ratio of KFP Co is eight times.
The directors of KFP Co believe a cash offer for the shares of NGN would have the best chance of success. It has been suggested that a cash offer could be financed by debt.
Required:
(a) Calculate the weighted average cost of capital of KFP Co on a market value weighted basis. (10 marks)
(b) Calculate the total value of the target company, NGN, using the following valuation methods:
(i) Price/earnings ratio method, using the price/earnings ratio of KFP Co; and
(ii) Dividend growth model. (6 marks)
(c) Discuss the relationship between capital structure and weighted average cost of capital, and comment on
the suggestion that debt could be used to finance a cash offer for NGN. (9 marks)
正确答案：
(b)(i)Price/earningsratiomethodEarningspershareofNGN=80cpersharePrice/earningsratioofKFPCo=8SharepriceofNGN=80x8=640cor$6·40NumberofordinarysharesofNGN=5/0·5=10millionsharesValueofNGN=6·40x10m=$64millionHowever,itcanbearguedthatareductionintheappliedprice/earningsratioisneededasNGNisunlistedandthereforeitssharesaremoredifficulttobuyandsellthanthoseofalistedcompanysuchasKFPCo.Ifwereducetheappliedprice/earningsratioby10%(othersimilarpercentagereductionswouldbeacceptable),itbecomes7·2timesandthevalueofNGNwouldbe(80/100)x7·2x10m=$57·6million(ii)DividendgrowthmodelDividendpershareofNGN=80cx0·45=36cpershareSincethepayoutratiohasbeenmaintainedforseveralyears,recentearningsgrowthisthesameasrecentdividendgrowth,i.e.4·5%.Assumingthatthisdividendgrowthcontinuesinthefuture,thefuturedividendgrowthratewillbe4·5%.Sharepricefromdividendgrowthmodel=(36x1·045)/(0·12–0·045)=502cor$5·02ValueofNGN=5·02x10m=$50·2million(c)Adiscussionofcapitalstructurecouldstartfromrecognisingthatequityismoreexpensivethandebtbecauseoftherelativeriskofthetwosourcesoffinance.Equityisriskierthandebtandsoequityismoreexpensivethandebt.Thisdoesnotdependonthetaxefficiencyofdebt,sincewecanassumethatnotaxesexist.Wecanalsoassumethatasacompanygearsup,itreplacesequitywithdebt.Thismeansthatthecompany’scapitalbaseremainsconstantanditsweightedaveragecostofcapital(WACC)isnotaffectedbyincreasinginvestment.Thetraditionalviewofcapitalstructureassumesanon-linearrelationshipbetweenthecostofequityandfinancialrisk.Asacompanygearsup,thereisinitiallyverylittleincreaseinthecostofequityandtheWACCdecreasesbecausethecostofdebtislessthanthecostofequity.Apointisreached,however,wherethecostofequityrisesataratethatexceedsthereductioneffectofcheaperdebtandtheWACCstartstoincrease.Inthetraditionalview,therefore,aminimumWACCexistsand,asaresult,amaximumvalueofthecompanyarises.ModiglianiandMillerassumedaperfectcapitalmarketandalinearrelationshipbetweenthecostofequityandfinancialrisk.Theyarguedthat,asacompanygearedup,thecostofequityincreasedataratethatexactlycancelledoutthereductioneffectofcheaperdebt.WACCwasthereforeconstantatalllevelsofgearingandnooptimalcapitalstructure,wherethevalueofthecompanywasatamaximum,couldbefound.Itwasarguedthattheno-taxassumptionmadebyModiglianiandMillerwasunrealistic,sinceintherealworldinterestpaymentswereanallowableexpenseincalculatingtaxableprofitandsotheeffectivecostofdebtwasreducedbyitstaxefficiency.Theyrevisedtheirmodeltoincludethistaxeffectandshowedthat,asaresult,theWACCdecreasedinalinearfashionasacompanygearedup.Thevalueofthecompanyincreasedbythevalueofthe‘taxshield’andanoptimalcapitalstructurewouldresultbygearingupasmuchaspossible.Itwaspointedoutthatmarketimperfectionsassociatedwithhighlevelsofgearing,suchasbankruptcyriskandagencycosts,wouldlimittheextenttowhichacompanycouldgearup.Inpractice,therefore,itappearsthatcompaniescanreducetheirWACCbyincreasinggearing,whileavoidingthefinancialdistressthatcanariseathighlevelsofgearing.Ithasfurtherbeensuggestedthatcompanieschoosethesourceoffinancewhich,foronereasonoranother,iseasiestforthemtoaccess(peckingordertheory).Thisresultsinaninitialpreferenceforretainedearnings,followedbyapreferencefordebtbeforeturningtoequity.TheviewsuggeststhatcompaniesmaynotinpracticeseektominimisetheirWACC(andconsequentlymaximisecompanyvalueandshareholderwealth).TurningtothesuggestionthatdebtcouldbeusedtofinanceacashbidforNGN,thecurrentandpostacquisitioncapitalstructuresandtheirrelativegearinglevelsshouldbeconsidered,aswellastheamountofdebtfinancethatwouldbeneeded.Earliercalculationssuggestthatatleast$58mwouldbeneeded,ignoringanypremiumpaidtopersuadetargetcompanyshareholderstoselltheirshares.Thecurrentdebt/equityratioofKFPCois60%(15m/25m).Thedebtofthecompanywouldincreaseby$58minordertofinancethebidandbyafurther$20maftertheacquisition,duetotakingontheexistingdebtofNGN,givingatotalof$93m.Ignoringotherfactors,thegearingwouldincreaseto372%(93m/25m).KFPCowouldneedtoconsiderhowitcouldservicethisdangerouslyhighlevelofgearinganddealwiththesignificantriskofbankruptcythatitmightcreate.ItwouldalsoneedtoconsiderwhetherthebenefitsarisingfromtheacquisitionofNGNwouldcompensateforthesignificantincreaseinfinancialriskandbankruptcyriskresultingfromusingdebtfinance. -
第18题：
The official statistics on productivity growth ________.
[A] exclude the usual rebound in a business cycle
[B] fall short of businessmen’s anticipation
[C] meet the expectation of business people
[D] fail to reflect the true state of economy
正确答案：B
47. [B] 意为：与商人的预想不符。或：不像商人预想的那样好。
第二段指出，官方的统计数字也并不怎么乐观，如果将制造业和服务业算在一起(lump... together)，1989年以来生产率平均增长了 1.2％，比前十年的平均指数略有增长；1991年后，生产率每年增长约 2％，是1978年至 1987年这十年平均指数的一倍多。然而问题是：最近显示出的增长部分是由商业领域里此时出现的正常的反弹造成的，因此，不能将它看作是更深层的（当指生产率）振兴的证据。正如财政部长鲁宾所说的那样，一方面，大量的商业神话似乎表明生产率的激增(leap)，另一方面，（官方的）统计数字又是另一番景象，二者之间存在着一个“差距”(disjunction)。定位到第二段的这几句：There is, as Robert Rubin, the treasury secretary, says, a "disjunction" between the mass of business anecdote that points to a leap in productivity and the picture reflected by the statistics.其意思是：正如财政部长罗伯特?鲁宾所说的，生产力发生飞跃的商业传奇与统计数字所反映的情况之间存在着一种“脱节”。商业传奇即是说大量的商业神话似乎表明生产率的激增(leap)。因此，可以得出结论，经济发展的实际情况和商人们所塑造的神话有脱节，即联系到了B 选项。
A意为：排除了商业领域里出现的正常的反弹。此选项定位到了原文第二段中的 The trouble is that part of the recent acceleration is due to the usual rebound that occurs at this point in a business cycle，意思是：近年发生的生产力快速增长部分是由于商业周期通常到了这时候就会出现的反弹造成的。但是官方统计时并未排除此反弹，在原文中没有根据。原文只是说这个反弹是个 trouble，但是并未说找个 trouble被排除了。
C意为：与商人预想的一致。这个与B 选项正好矛盾，参考B 选项的解释。
D 意为：没有准确地反映经济的状况。该选项的说法太笼统了，虽然由原文得出了“脱节”的结论，但是请注意，是生产力发生飞跃的商业传奇与统计数字所反映的情况之间存在着一种“脱节”，而不是该官方统计与经济情况存在脱节。至少，原文并未说该统计不准确，而只是说该统计与商人们预料的不符。 -
第19题：
One of its tasks is to get business information and （） new business opportunities for its members.
Afinding
Bto find
Cfinds
Dfind
D
略 -
第20题：
The project manager is developing a project schedule. The project manager negotiated with all the execution organizations， and the task times are as short as possible. After manipulating the schedule， the project completion date is still beyond the date requested by the business owners of the project. The project manager believes that the content agreed on for the project is appropriate， and concludes that this schedule should be taken to the business owners and renegotiated. Which one of the following tools will help the project manager justify the revised schedule？（）
- A、Data flow model
- B、The project critical path
- C、Resource loading chart
- D、WBS （Work Breakdown Structure）
正确答案:B -
第21题：
单选题According to the passage, Virgin Group ______.Ahas moved its business to movie industry
Btook advantage of movie Some Like It Hot to make an advert
Cprobably runs common trains
Dwill be happy to see a scene taking place in one of the effluent-smelling vestibule areas of a Virgin Pendolino
正确答案： C解析：
题目问的是：文中可知维珍集团什么信息？根据第9段“Not too long ago Virgin Trains cannibalised two great train-heavy movies, North by Northwest and Some Like It Hot, for an advert.”可知维珍铁路公司拍了两部电影来打广告，其中有Some Like It，故选B。 -
第22题：
问答题Practice 5 ‘Mini presentation’—about 6 minutes In this part of the test you are asked to give a short talk on a business topic. You have to choose one of the topics from the three below and then talk for about one minute. You have one minute to prepare your ideas. A WHAT IS IMPORTANT WHEN…? Selecting a secretary for the general manager ● Qualifications ● Related work experience B WHAT IS IMPORTANT WHEN…? Cancelling a business meeting ● Making an apology ● Reasons for cancellation C WHAT IS IMPORTANT WHEN…? Motivating staff ● Bonuses offered ● Pleasant working environment正确答案： 【参考范例】
If you choose topic A:
When selecting a secretary for the general manager, we must first of all consider if he or she has the qualifications needed. A candidate with adequate knowledge of office skills and public relations will be an ideal one.
Related work experience is also of great importance. A skilled secretary can accomplish the office work quite satisfactorily. People with little experience sometimes will inevitably feel confused when dealing with the complicated relationships around the general manager.
In addition, the secretary should have a good personality because a good character will help a lot in smoothing the communication with the general manager and other staff members.
If you choose topic B:
When cancelling a business meeting, firstly an apology for the cancellation is necessary due to its effect on the participants’ schedules and the inconvenience it has caused to others. A business meeting is not supposed not be easily cancelled if there are other alternatives.
After the apology, you should give the participants reasons for cancelling the meeting and make it convincing and sincere. Normally, participants will show their understanding and tolerance if the thuth is told and the attitude is acceptable. In case some participants have already arrived at the meeting venue or on the way to it, there should be an another plan to compensate for the time and financial loss of the participants.
Finally, new dates for the meeting should be set so that the participants can be better prepared.
If you choose topic C:
I believe that we all know the significance of motivating staff to increase their productivity and their contribution to the company. The inspired staff is more likely to enjoy the job and work more actively. There are various ways to motivate staff, of which giving bonuses is quite effective. Occasional stimuli of money will drive the staff forward.
Plus, a pleasant work environment is also very important in motivating staff since people like staying in a clean and tidy office where they can work more efficiently. A well-equipped office will help staff do more meaningful and creative work.
In addition, team spirit and trusty colleagues can also contribute in motivating staff.,which will always make everyone enjoy the work.解析： 暂无解析 -
第23题：
问答题题目要求: In this part of the test, you are asked to give a short talk on a business topic. You have to choose one of the topics from the two below and then talk for about one minute. You have one minute to prepare your ideas.Practice 1 A: What is important when...? Attending an interview ●Punctuality ●Manner ●Appearance B: What is important when...? Working in a team ●Having a team leader ●Deciding people’s responsibilities ●Sharing information正确答案： 【参考范例】
If you choose A:
When attending an interview, it’s a merit that we show up on time. For an interview due to start at nine thirty in the morning, the candidate is expected to arrive five minutes earlier. To be better prepared for the interview, if possible, he’d better pay a visit to the interview site in advance. By doing this, he will be able to figure out the shortest route and the approximate time to get there.
In addition, remember that the interviewer is observing you even before your entrance into the room. Therefore, don’t forget to knock at the door first, no matter whether it’s shut or open. Furthermore, eye contact is necessary. Look straight into the interviewer’s eyes with politeness and self-confidence. At the meanwhile, greet him with a smile
Furthermore, a person who is particular about his appearance is always welcome everywhere. With your hair neatly cut your beard nicely shaved and your face cleanly washed, you are more likely to leave a good first impression. At the same time, arm yourself with a starched shirt, an ironed suit and a pair of polished shoes. By doing that, you’re definitely a pleasant guy in the eyes of both male and female interviewers.
If you choose B:
When working in a team, first of all, a team leader is essential for the team. With the lead of a good team leader, the team can fulfill the tasks smoothly. Without a team leader, there will be no definite direction and employees may not know what to do and how to do the work in co-operation with each other.
Secondly, it is important that every employee knows his/her responsibility. When clear-cut assignment of responsibility, employees can concentrate on their tasks and work more efficiently. As a result, the company’s objective can be eventually achieved.
Thirdly, as a member of the team, every employee is entitled to know any information within the group. Therefore, information should be shared, and by doing this a lot of time and energy can be saved, which may otherwise be used to do much more work.解析： 暂无解析