6 The accountant communicates information to other - 考试试题及答案解析 - 读趣百科
解答题

6 The accountant communicates information to others in reports and statements. Understanding the nature and

importance of communication is therefore an important part of the accountant’s role.

Required:

(a) Explain the importance of good communication. (5 marks)

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题目答案

6 Overview:The need for clear and concise communication and the consequences of poor communication must be understood by a professionwhich exists to provide information to others. Poor communication leads to ineffective control, poor co-ordination and man

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解答题

(ii) the recent financial performance of Merton plc from a shareholder perspective. Clearly identify any

issues that you consider should be brought to the attention of the ordinary shareholders. (15 marks)

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题目答案

(ii) Discussion of financial performanceIt is clear that 2006 has been a difficult year for Merton plc. There are very few areas of interest to shareholders whereanything positive can be found to say.ProfitabilityReturn on capital employed has declined fr

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解答题

(c) Calculate the theoretical ex rights price per share and the net funds to be raised by the rights issue, and

determine and discuss the likely effect of the proposed expansion on:

(i) the current share price of Merton plc;

(ii) the gearing of the company.

Assume that the price–earnings ratio of Merton plc remains unchanged at 12 times. (11 marks)

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题目答案

(c) Rights issue price = 2·45 x 0·8 = £1·96Theoretical ex rights price = ((2 x 2·45) + (1 x 1·96))/3 = 6·86/3 = £2·29New shares issued = 20m x 1/2 = 10 millionFunds raised = 1·96 x 10m = £19·6 millionAfter issue costs of £300,000 funds raised will be £19·

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解答题

(d) Calculate the ex dividend share price predicted by the dividend growth model and discuss the company’s

view that share price growth of at least 8% per year would result from expanding into the retail camera

market. Assume a cost of equity capital of 11% per year. (6 marks)

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题目答案

(d) The dividend growth model calculates the ex div share price from knowledge of the cost of equity capital, the expected growthrate in dividends and the current dividend per share (or next year’s dividend per share). Using the formula given in theformul

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解答题

2 (a) Discuss the nature of the financial objectives that may be set in a not-for-profit organisation such as a charity

or a hospital. (8 marks)

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题目答案

2 (a) In the case of a not-for-profit (NFP) organisation, the limit on the services that can be provided is the amount of funds thatare available in a given period. A key financial objective for an NFP organisation such as a charity is therefore to raise

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解答题

(d) Explain to the management of Bailey’s why consideration should be given to resolving the problems through:

(i) job rotation; (5 marks)

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题目答案

(d) (i) Job rotation is the planned rotation of staff between jobs and tasks to reduce monotony and boredom and provide fresh opportunities and challenges. This could be a useful way of encouraging employees at Bailey’s alongside enrichment and enlargemen

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