Reference no: EM132505258
Question (a) Describe any three dividend policies that are pursued by different companies in practice.
Question (b) Describe four factors that affect a firm's dividend policy
Question (c) Describe four roles of capital markets in a country like Uganda
With examples, explain the following terms:-
(i) Systematic risk
(ii) Unsystematic risk
(iii) , describe three strategies used by managers to diversify risk
Question (d) Frank has won Shs10 million in sports betting and he intends to spends 60% of the funds by investing in X securities and the balance (40%) the funds in Y securities.
Required: Calculate the expected return of the portfolio X&Y
Question (e) The term 'overtrading' is used to describe the condition of an enterprise which is increasing its sales revenue with insufficient working capital to support the increase.
(i) Describe any four movements in items in financial statements or accounting ratios that could indicate overtrading
(ii) Describe any four actions a company suffering from overtrading could take to rectify its position, and explain the likely effect of the actions you propose