问答题(c)Discuss the relative merits of the dividend growth model and the earnings yield method as a way of valuing Chad Co. (5 marks)

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问答题(b)Briefly explain the nature of a forward rate agreement and discuss how a company can use a forward rateagreement to manage interest rate risk. (5 marks)

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问答题(b)Briefly discuss how the creditworthiness of potential customers can be assessed.(3 marks)

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问答题(c) Assuming that Flit Co expects to have a short-term cash surplus during the three-month period, discuss whether this should be invested in shares listed on a large stock market.(3 marks)

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案例分析题Tramor

案例分析题RMBE is licensed to operate a high-speed rail network directly linking several cities in the large country of Vinland

案例分析题Retail World (RW) is a major international retail chain, selling groceries, clothing, electronic items, toiletries and homeware items. It has grown rapidly across a number of different countries, offering a broad product range to suit a wide range of customer segments. Growth has been through the expansion of existing stores, in addition to the opening of new stores. The new finance director, whose background is in a non-retail environment, is keen to understand the sales trends of the organisation, as well as the industry, in order to help develop a strategy which can take advantage of these trends in the future. A business analyst has provided summarised internal sales data for this purpose. The companys IT systems are fully integrated and associated controls are rigorous, allowing the data to be manipulated in many ways. The analyst has provided time series analysis (Figure 1) and regression analysis (Figures 2 and 3). He wanted to explore the possibility of identifying different causal relationships, carrying out least squares regression analysis linking sales to both time (Figure 2) and number of stores in operation (Figure 3). The number of stores has grown annually and the analyst believes that this is a better indicator of the expected future revenue than simply the passage of time. The average number of stores expected to be in operation in 2017 is 3,700 rising to 4,000 in 2018. Notes: (1) Svar is the expected seasonal variation, calculated by averaging the variations of each quarter (2) Sadj is the sales total, adjusted for average seasonal variation. Figure 2 Least squares regression analysis (time) An extract of the values used in the calculation of this is shown below. This illustrates the basis of the regression analysis. All values were used in the calculation of the least squares regression formula. Figure 3 Least squares regression analysis (number of stores) The values used in the calculation of this are shown below: The finance director was interested to receive the analysis, saying, We can use this to estimate what our revenues might be in the future, both quarterly and annually. However, he also stated that it was not quite as useful as he would have hoped for, commenting, I have been hearing a lot about big data at industry meetings I have attended. I think we should investigate the ways in which we could use this, and the benefits we might hope to obtain from it. Required: