Reference no: EM132907353

Kindly give detailed and clear solutions.

1. Explain why a bank might be unwilling to finance the whole of a project, despite the fact that it considers the project to be profitable and secure.

2.The stock market is often accused of being too focused on the short term. If this is true, how could this have a negative effect on a company's long-term growth prospects?

3. A large well-established company has run upon hard times. Having had robust and increasing profits for the last 10 years, half of which it has paid in the form of dividends, it has been hit by recession in 3 of the 4 industrial areas in which it operates. The directors are keen to maintain investor loyalty, and are afraid of a takeover by another company. However they accept that the profits in the current financial year will be zero.

State what further information you would require in order to set the dividend policy for the coming year.

4. Give three possible courses of action for the management of the company described in the question above.