2018年12月ACCA考试P4高级财务管理真题及答案解析.doc

1、2018 年 12 月 ACCA 考试 P4 高级财务管理真题及答案解析(总分：100.00，做题时间：195 分钟)一、案例分析题(总题数：0，分数：0.00)Section A(总题数：1，分数：50.00)Around seven years ago, Opao Co, a private conglomerate company involved in many different businesses, decided to obtain a listing on a recognised stock exchange by offering a small proportion o

2、f its equity shares to the public. Before the listing, the company was owned by around 100 shareholders, who were all closely linked to Opao Co and had their entire shareholding wealth invested in the company. However, soon after the listing these individuals started selling their shares in Opao Co,

3、 and over a two-year period after the listing, its ownership structure changed to one of many diverse individual and institutional shareholders.As a consequence of this change in ownership structure, Opao Cos board of directors (BoD) commenced an aggressive period of business reorganisation through

4、portfolio and organisational restructuring. This resulted in Opao Co changing from a conglomerate company to a company focusing on just two business sectors: financial services and food manufacturing. The financial press reported that Opao Co had been forced to take this action because of the change

5、 in the type of its shareholders. The equity markets seem to support this action, and Opao Cos share price has grown strongly during this period of restructuring, after growing very slowly initially.Opao Co recently sold a subsidiary company, Burgut Co, through a management buy-in (MBI), although it

6、 also had the option to dispose of Burgut Co through a management buy-out (MBO). In a statement, Opao Cos BoD justified this by stating that Burgut Co would be better off being controlled by the MBI team.Opao Co is now considering acquiring Tai Co and details of the proposed acquisition are as follo

7、ws:Proposed acquisition of Tai CoTai Co is an unlisted company involved in food manufacturing. Opao Cos BoD is of the opinion that the range of products produced by Tai Co will fit very well with its own product portfolio, leading to cross-selling opportunities, new innovations, and a larger market

8、share. The BoD also thinks that there is a possibility for economies of scale and scope, such as shared logistic and storage facilities, giving cost saving opportunities. This, the BoD believes, will lead to significant synergy benefits and therefore it is of the opinion that Opao Co should make a b

9、id to acquire Tai Co.Financial information related to Opao Co, Tai Co and the combined companyOpao CoOpao Co has 2,000 million shares in issue and are currently trading at $250 each.Tai CoTai Co has 263 million shares in issue and the current market value of its debt is $400 million. Its most recent

10、 profit before interest and tax was $1320 million, after deducting tax allowable depreciation and non-cash expenses of $274 million. Tai Co makes an annual cash investment of $243 million in non-current assets and working capital. It is estimated that its cash flows will grow by 3% annually for the

11、foreseeable future. Tai Cos current cost of capital is estimated to be 11%.Combined companyIf Opao Co acquires Tai Co, it is expected that the combined companys sales revenue will be $7,351 million in the first year and its annual pre-tax profit margin on sales will be 154% for the foreseeable futur

12、e. After the first year, sales revenue will grow by 502% every year for the next three years. It can be assumed that the combined companys annual depreciation will be equivalent to the investment required to maintain the company at current operational levels. However, in order to increase the sales

13、revenue levels each year, the combined company will require an additional investment of $109 million in the first year and $031 for every $1 increase in sales revenue for each of the next three years.After the first four years, it is expected that the combined companys free cash flows will grow by 2

14、4% annually for the foreseeable future. The combined companys cost of capital is estimated to be 10%. It expected that the combined companys debt to equity level will be maintained at 40:60, in market value terms, after the acquisition has taken place.Both Opao Co and Tai Co pay corporation tax on p

15、rofits at an annual rate of 20% and it is expected that this rate will not change if Opao Co acquires Tai Co. It can be assumed that corporation tax is payable in the same year as the profits it is charged on.Possible acquisition price offersOpao Cos BoD is proposing that Tai Cos acquisition be made

16、 through one of the following payment methods:(i) A cash payment offer of $440 for each Tai Co share, or(ii) Through a share-for-share exchange, where a number of Tai Co shares are exchanged for a number of Opao Co shares, such that 555% of the additional value created from the acquisition is alloca

17、ted to Tai Cos shareholders and the remaining 445% of the additional value is allocated to Opao Cos shareholders, or(iii) Through a mixed offer of a cash payment of $209 per share and one Opao Co share for each Tai Co share. It is estimated that Opao Cos share price will become $260 per share when s

18、uch a mixed offer is made.Similar acquisitions in the food manufacturing industry have normally attracted a share price premium of between 15% and 40% previously.Required:（分数：50）(1).Distinguish between a management buy-out (MBO) and a management buy-in (MBI), and discuss why Opao Cos board of direct

19、ors (BoD) might have sold Burgut Co through an MBI.（分数：4）_(2).Explain what portfolio restructuring and organisational restructuring involve, and discuss possible reason(s) why the change in the type of shareholders may have made Opao Co change from being a conglomerate to one focusing on just two bu

20、siness sectors.（分数：5）_(3).Prepare a report for the board of directors of Opao Co which:(i) Estimates the value of equity of Opao Co and of Tai Co before the acquisition, and of the combined company after the acquisition;(ii) Estimates the percentage gain in value for each Opao Co share and Tai Co sh

21、are, under each of the cash, the share-for-share, and the mixed offers;(iii) Evaluates the likely reaction of Opao Cos and Tai Cos shareholders to the acquisition offers.Professional marks will be awarded in part (c) for the format, structure and presentation of the report.（分数：33）_(4).Following the

22、MBI, the BoD of Burgut Co announced that its intention was to list the company on a recognised stock exchange within seven years. The BoD is discussing whether to obtain the listing through an initial public offering (IPO) or through a reverse takeover, but it does not currently have a strong prefer

23、ence for either option.Required:Distinguish between an IPO and a reverse takeover, and discuss whether an IPO or a reverse takeover would be an appropriate method for Burgut Co to obtain a listing.（分数：8）_Section B(总题数：2，分数：50.00)Nutourne Co is a company based in the USA, supplying medical equipment

24、to the USA and Europe.It is 30 November 20X8. Nutourne Cos treasury department is currently dealing with a sale to a Swiss customer of CHF123 million which has just been agreed, where the customer will pay for the equipment on 31 May 20X9. The treasury department intends to hedge the foreign exchang

25、e risk on this transaction using traded futures or options as far as possible. Any amount not hedged by a futures or option contract will be hedged on the forward market.Exchange rates (quoted as US$/CHF 1)Spot 1029210309Three months forward 1032710347Six months forward 1035810380Currency futures (c

26、ontract size CHF125,000, futures price quoted as US$ per CHF1)Futures priceDecember 10318March 10345June 10369Currency options (contract size CHF125,000, exercise price quotation US$ per CHF1, premium: US cents per CHF1)Calls PutsExercise price December March June December March June10375 047 050 05

27、3 074 079 086Futures and options contracts mature at the month end.Non-executive directors commentsA new non-executive director has recently been briefed about the work of the treasury department and has a number of questions about hedging activities. He wants to understand the significance of basis

28、 risk in relation to futures. He also wants to know the significant features of over-the-counter forward contracts and options, and why Nutourne Co prefers to use exchange-traded derivatives for hedging.The non-executive director has also heard about the mark-to-market process and wants to understan

29、d the terminology involved, and how the process works, using the transaction with the Swiss customer as an example. The treasury department has supplied relevant information to answer his query. The contract specification for the CHF futures contract states that an initial margin of US$1,450 per con

30、tract will be required and a maintenance margin of US$1,360 per contract will also be required. The tick size on the contract is US$00001 and the tick value is US$1250. You can assume that on the first day when Nutourne Co holds the futures contracts, the loss per contract is US$00011.Required:（分数：2

31、5）(1).Evaluate which of the exchange-traded derivatives would give Nutourne Co the higher receipt, considering scenarios when the options are and are not exercised.（分数：12）_(2).Discuss the benefits and drawbacks for Nutourne Co in using forward contracts compared with using over-the-counter currency

32、options, and explain why Nutourne Co may prefer to use exchange-traded derivatives rather than over-the-counter derivatives to hedge foreign currency risk.（分数：7）_(3).Explain to the non-executive director how the mark-to-market process would work for the CHF futures, including the significance of the

33、 data supplied by the treasury department. Illustrate your explanation with calculations showing what would happen on the first day, using the data supplied by the treasury department.（分数：6）_Amberle Co is a listed company with divisions which manufacture cars, motorbikes and cycles. Over the last fe

34、w years, Amberle Co has used a mixture of equity and debt finance for its investments. However, it is about to make a new investment of $150 million in facilities to produce electric cars, which it proposes to finance solely by debt finance.Project informationAmberle Cos finance director has prepare

35、d estimates of the post-tax cash flows for the project, using a four-year time horizon, together with the realisable value at the end of four years:Year 1 2 3 4$m $m $m $mPost-tax operating cash flows 2850 3670 4440 5090Realisable value 4500Working capital of $6 million, not included in the estimate

36、s above and funded from retained earnings, will also be required immediately for the project, rising by the predicted rate of inflation for each year. Any remaining working capital will be released in full at the end of the project.Predicted rates of inflation are as follows:Year 1 2 3 48% 6% 5% 4%T

37、he finance director has proposed the following finance package for the new investment:Issue costs of 3% of gross proceeds will be payable on the subsidised loan. No issue costs will be payable on the bank loan. Issue costs are not allowable for tax.Financial informationAmberle Co pays tax at an annu

38、al rate of 30% on profits in the same year in which profits arise.Amberle Cos asset beta is currently estimated at 114. The current return on the market is estimated at 11%. The current risk-free rate is 4% per year.Amberle Cos chairman has noted that all of the companys debt, including the new debt

39、 will be repayable within three to five years. He is wondering whether Amberle Co needs to develop a longer term financing policy in broad terms and how flexible this policy should be.Required:（分数：25）(1).Calculate the adjusted present value (APV) for the project and conclude whether the project sho

40、uld be accepted or not.（分数：15）_(2).Discuss the factors which may determine the long-term finance policy which Amberle Cos board may adopt and the factors which may cause the policy to change.（分数：10）_2018 年 12 月 ACCA 考试 P4 高级财务管理真题答案解析(总分：100.00，做题时间：195 分钟)一、案例分析题(总题数：0，分数：0.00)Section A(总题数：1，分数：50

41、00)Around seven years ago, Opao Co, a private conglomerate company involved in many different businesses, decided to obtain a listing on a recognised stock exchange by offering a small proportion of its equity shares to the public. Before the listing, the company was owned by around 100 shareholder

42、s, who were all closely linked to Opao Co and had their entire shareholding wealth invested in the company. However, soon after the listing these individuals started selling their shares in Opao Co, and over a two-year period after the listing, its ownership structure changed to one of many diverse

43、individual and institutional shareholders.As a consequence of this change in ownership structure, Opao Cos board of directors (BoD) commenced an aggressive period of business reorganisation through portfolio and organisational restructuring. This resulted in Opao Co changing from a conglomerate comp

44、any to a company focusing on just two business sectors: financial services and food manufacturing. The financial press reported that Opao Co had been forced to take this action because of the change in the type of its shareholders. The equity markets seem to support this action, and Opao Cos share p

45、rice has grown strongly during this period of restructuring, after growing very slowly initially.Opao Co recently sold a subsidiary company, Burgut Co, through a management buy-in (MBI), although it also had the option to dispose of Burgut Co through a management buy-out (MBO). In a statement, Opao Cos BoD justified this by stating that Burgut Co would be better off being controlled by the MBI team.Opao Co is now considering acquiring Tai Co and details of the proposed