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[主观题]

JJG Co is planning to raise $15 million of new finance for a major expansion of existing b

usiness and is considering a rights issue, a placing or an issue of bonds. The corporate objectives of JJG Co, as stated in its Annual Report, are to maximise the wealth of its shareholders and to achieve continuous growth in earnings per share. Recent financial information on JJG Co is as follows:

JJG Co is planning to raise 15 million of new fina

Required:

(a) Evaluate the financial performance of JJG Co, and analyse and discuss the extent to which the company has achieved its stated corporate objectives of:

(i) maximising the wealth of its shareholders;

(ii) achieving continuous growth in earnings per share.

Note: up to 7 marks are available for financial analysis.(12 marks)

(b) If the new finance is raised via a rights issue at $7·50 per share and the major expansion of business has

not yet begun, calculate and comment on the effect of the rights issue on:

(i) the share price of JJG Co;

(ii) the earnings per share of the company; and

(iii) the debt/equity ratio. (6 marks)

(c) Analyse and discuss the relative merits of a rights issue, a placing and an issue of bonds as ways of raising the finance for the expansion. (7 marks)

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更多“JJG Co is planning to raise $15 million of new finance for a major expansion of existing b”相关的问题

第1题

ISA 210 Agreeing the Terms of Audit Engagements requires auditors to agree the terms of an
engagement with those charged with governance and formalise these in an engagement letter.

Required:

(a) Identify and explain TWO factors which would indicate that an engagement letter for an existing audit client should be revised. (2 marks)

(b) List SIX matters which should be included within an audit engagement letter. (3 marks)

(c) Your audit firm has just won a new audit client, Milky Way Technologies Co (Milky Way), and you have been asked by the audit engagement partner to gain an understanding about the new client as part of the planning process.

Required:

Identify FIVE sources of information relevant to gaining an understanding of Milky Way Technologies Co and describe how this information will be used by the auditor. (5 marks)

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第2题

Nancy and Peter McCall like sports. In the summer they swim and in the winter they ski. They are planning ski trip for this weekend, but they don't know about the weather. It's 7:30 now, and they are

Nancy and Peter McCall like sports. In the summer they swim and in the winter they ski. They are planning ski trip for this weekend, but they don't know about the weather. It's 7:30 now, and they are listening to the weather report on the radio. The weatherman is giving the weather forecast for the weekend. "Friday is going to be cold and cloudy, but it's not going to rain. The temperature is going to be in the thirties. It's going to snow Friday night and maybe Saturday morning. Saturday afternoon and Sunday are going to be clear, cold and sunny. " Now Nancy and Peter are excited. The weather is going to be perfect for a ski trip. They are going to have a wonderful weekend in the mountains.

1. Nancy and Peter listened to the weather forecast for the weekend.

A:T B:F

2. Nancy and Peter are planning a trip to the village for the weekend.

A:T B:F

3. It is going to snow Friday night according to the weather forecast.

A:T B:F

4. The weather will be warm and rainy on Sunday.

A:T B:F

5. Nancy and Peter often do sports.

A:T B:F

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第3题

Michael: The Johnsons are moving next week. We are going to have a going-away party for th
em Saturday. Tracy: I didn't realize they were moving so soon. ______ Michael: Yes, but we'll have one last chance to get together. We're planning a barbecue.

A.Wish them a happy journey.

B.May they have a more comfortable home.

C.They are really going to be missed.

D.We can't stay together forever, can we?

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第4题

You are the audit supervisor of Seagull & Co and are currently planning the audit of y
our existing client, Eagle Heating Co (Eagle), for the year ending 31 December 2014. Eagle manufactures and sells heating and plumbing equipment to a number of home improvement stores across the country.

Eagle has experienced increased competition and as a result, in order to maintain its current levels of sales, it has decreased the selling price of its products significantly since September 2014. The finance director has informed your audit manager that he expects increased inventory levels at the year end. He also notified your manager that one of Eagle’s key customers has been experiencing financial difficulties. Therefore, Eagle has agreed that the customer can take a six-month payment break, after which payments will continue as normal. The finance director does not believe that any allowance is required against this receivable.

In October 2014 the financial controller of Eagle was dismissed. He had been employed by the company for over 20 years, and he has threatened to sue the company for unfair dismissal. The role of financial controller has not yet been filled and so his tasks have been shared between the existing finance department team. In addition, the purchase ledger supervisor left in August and a replacement has been appointed in the last week. However, for this period no supplier statement reconciliations or purchase ledger control account reconciliations were performed.

You have undertaken a preliminary analytical review of the draft year to date statement of profit or loss, and you are surprised to see a significant fall in administration expenses.

Required:

Explain FIVE audit risks, and the auditor’s response to each risk, in planning the audit of Eagle Heating Co.

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第5题

Truffle Co makes high quality, hand-made chocolate truffles which it sells to a local reta
iler. All chocolates are made in batches of 16, to fit the standard boxes supplied by the retailer. The standard cost of labour for each batch is $6·00 and the standard labour time for each batch is half an hour. In November, Truffle Co had budgeted production of 24,000 batches; actual production was only 20,500 batches. 12,000 labour hours were used to complete the work and there was no idle time. All workers were paid for their actual hours worked. The actual total labour cost for November was $136,800. The production manager at Truffle Co has no input into the budgeting process.

At the end of October, the managing director decided to hold a meeting and offer staff the choice of either accepting a 5% pay cut or facing a certain number of redundancies. All staff subsequently agreed to accept the 5% pay cut with immediate effect.

At the same time, the retailer requested that the truffles be made slightly softer. This change was implemented immediately and made the chocolates more difficult to shape. When recipe changes such as these are made, it takes time before the workers become used to working with the new ingredient mix, making the process 20% slower for at least the first month of the new operation.

The standard costing system is only updated once a year in June and no changes are ever made to the system outside of this.

Required:

(a) Calculate the total labour rate and total labour efficiency variances for November, based on the standard cost provided above. (4 marks)

(b) Analyse the total labour rate and total labour efficiency variances into component parts for planning and operational variances in as much detail as the information allows. (8 marks)

(c) Assess the performance of the production manager for the month of November. (8 marks)

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第6题

以下属于电力行业标准代号的是()

A.DL

B.GB

C.SD

D.JB

E.JJG

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第7题

在温度T时,CO和H2O在密闭容器内发生下列反应: (1)此温度下该可逆反应的标准平衡常数;
在温度T时,CO和H2O在密闭容器内发生下列反应: (1)此温度下该可逆反应的标准平衡常数;

在温度T时,CO和H2O在密闭容器内发生下列反应:

(1)此温度下该可逆反应的标准平衡常数;

(2)反应开始前反应物的分压;

(3)CO的平衡转化率。

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第8题

I don't want you to make any trouble, () I urge you to solve the problemA thusB co

I don't want you to make any trouble, () I urge you to solve the problem

A thus

B consequently

C on the contrary

D just as

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第9题

气体co分子的转动惯量I=l.45x10-46kg·m2,试求转动量子数J为4与3两能级的能量差 ,

气体co分子的转动惯量I=l.45x10-46kg·m2,试求转动量子数J为4与3两能级的能量差,并求T=300K时的/(kT).

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第10题

Cardio Co manufactures three types of fitness equipment: treadmills (T), cross trainers (C

Cardio Co manufactures three types of fitness equipment: treadmills (T), cross trainers (C) and rowing machines (R). The budgeted sales prices and volumes for the next year are as follows:

Labour costs are 60% fixed and 40% variable. General fixed overheads excluding any fixed labour costs are expected to be $55,000 for the next year.

Required:

(a) Calculate the weighted average contribution to sales ratio for Cardio Co. (4 marks)

(b) Calculate the margin of safety in $ revenue for Cardio Co. (3 marks)

(c) Using the graph paper provided and assuming that the products are sold in a CONSTANT MIX, draw a multi-product breakeven chart for Cardio Co. Label fully both axes, any lines drawn on the graph and the breakeven point. (6 marks)

(d) Explain what would happen to the breakeven point if the products were sold in order of the most profitable products first.

Note: You are NOT required to demonstrate this on the graph drawn in part (c). (2 marks)

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