Reconcile the arguments of the board chairperson

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Q1. In a board meeting, The Board Chairperson of Fijian Holdings interrupts the CEO and says "But the shareholders want dividends" in response to the CEO who is indicating that "The COVID 19 crisis has dramatically affected our cash flow and therefore no dividends can be paid this year. In fact dividends will not make any difference".

a. Reconcile the arguments of the Board Chairperson and the CEO with respect to Fijian Holdings share value

Q2. Recently Energy Fiji Limited (EFL) sold 44% of its shares to Sevens Pacific Ltd, a subsidiary of Chugoku Electric Power Company Ltd and the Japan Bank of International Cooperation. The major shareholder indicates that the new shareholders in bring in new technology that will be more costs effective and environmentally friendly.:

a. What do you think is the estimated value of the 44% of the EFL shares sold to Sevens Pacific Ltd. Clearly state your assumptions and show full calculations. You must use more than one way of calculating the value of EFL shares

Reference no: EM133047255

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