1、2017年 6月 ACCA考试 P4高级财务管理真题及答案解析(总分：125.00，做题时间：195 分钟)案例分析题(总题数：4，分数：125.00)Section A This ONE question is compulsory and MUST be attemptedThe eight-member board of executive directors (BoD) of Chrysos Co, a large private, unlisted company, is considering the companys long-term business and financia
2、l future. The BoD is considering whether or not to undertake a restructuring programme. This will be followed a few years later by undertaking a reverse takeover to obtain a listing on the stock exchange in order to raise new finance. However, a few members of the BoD have raised doubts about the re
3、structuring programme and the reverse takeover, not least the impact upon the companys stakeholders. Some directors are of the opinion that an initial public offering (IPO) would be a better option when obtaining a listing compared to a reverse takeover.Chrysos Co was formed about 15 years ago by a
4、team of five senior equity holders who are part of the BoD and own 40% of the equity share capital in total; 30 other equity holders own a further 40% of the equity share capital but are not part of the BoD; and a consortium of venture capital organisations (VCOs) own the remaining 20% of the equity
5、 share capital and have three representatives on the BoD. The VCOs have also lent Chrysos Co substantial debt finance in the form of unsecured bonds due to be redeemed in 10 years time. In addition to the BoD, Chrysos Co also has a non-executive supervisory board consisting of members of Chrysos Cos
6、 key stakeholder groups. Details of the supervisory board are given below.Chrysos Co has two business units: a mining and shipping business unit, and a machinery parts manufacturing business unit. The mining and shipping business unit accounts for around 80% of Chrysos Cos business in terms of sales
7、 revenue, non-current and current assets, and payables. However, it is estimated that this business unit accounts for around 75% of the companys operating costs. The smaller machinery parts manufacturing business unit accounts for the remaining 20% of sales revenue, non-current and current assets, a
8、nd payables; and around 25% of the companys operating costs.The following figures have been extracted from Chrysos Cos most recent financial statements:Profit before depreciation, interest and tax for the year to 28 February 2017Corporate restructuring programmeThe purpose of the restructuring progr
9、amme is to simplify the companys gearing structure and to obtain extra funding to expand the mining and shipping business in the future. At present, Chrysos Co is having difficulty obtaining additional funding without having to pay high interest rates.Machinery parts manufacturing business unitThe s
10、maller machinery parts manufacturing business unit will be unbundled either by having its assets sold to a local supplier for $3,102 million after its share of payables have been paid; orThe smaller machinery parts manufacturing business unit will be unbundled through a management buy-out by four ma
11、nagers. In this case, it is estimated that its after-tax net cash flows will increase by 8% in the first year only and then stay fixed at this level for the foreseeable future. The cost of capital related to the smaller business unit is estimated to be 10%. The management buy-out team will pay Chrys
12、os Co 70% of the estimated market value of the smaller machinery parts manufacturing business unit.Mining and shipping business unitFollowing the unbundling of the smaller machinery parts manufacturing business unit, Chrysos Co will focus solely on the mining and shipping business unit, prior to und
13、ertaking the reverse takeover some years into the future.As part of the restructuring programme, the existing unsecured bonds lent by the VCOs will be cancelled and replaced by an additional 600 million $1 shares for the VCOs. The VCOs will pay $400 million for these shares. The bank overdraft will
14、be converted into a 15-year loan on which Chrysos Co will pay a fixed annual interest of 450%. The other debt under non-current liabilities will be repaid. In addition to this, Chrysos Co will invest $1,200 million into equipment for its mining and shipping business unit and this will result in its
15、profits and cash flows growing by 4% per year in perpetuity.Additional financial informationChrysos Co aims to maintain a long-term capital structure of 20% debt and 80% equity in market value terms. Chrysos Cos finance director has assessed that the 450% annual interest it will pay on its bank loan
16、 is a reasonable estimate of its long-term cost of debt, based on the long-term capital structure above.Although Chrysos Co does not know what its cost of capital is for the mining and shipping business unit, its finance director has determined that the current ungeared cost of equity of Sidero Co,
17、a large quoted mining and shipping company, is 1246%. Chrysos Cos finance director wants to use Sidero Cos ungeared cost of equity to calculate its cost of capital for the mining and shipping business unit.The annual corporation tax rate on profits applicable to all companies is 18% and it can be as
18、sumed that tax is payable in the year incurred. All the non-current assets are eligible for tax allowable depreciation of 12% annually on the book values. The annual reinvestment needed to keep operations at their current levels is equivalent to the tax allowable depreciation.Details of the supervis
19、ory boardThe non-executive supervisory board provides an extra layer of governance over the BoD. It consists of representatives from the companys internal stakeholder groups including the finance providers, employees and the companys management. It ensures that the actions taken by the BoD are for t
20、he benefit of all the stakeholder groups and to the company as a whole. Any issues raised in board meetings are resolved through negotiation until an agreed position is reached.Required:（分数：50）(1).Explain what a reverse takeover involves and discuss the relative advantages and disadvantages to a com
21、pany, such as Chrysos Co, of obtaining a listing through a reverse takeover as opposed to an initial public offering (IPO).（分数：9）_(2).Prepare a report for the board of directors of Chrysos Co which includes:(i) An extract of the financial position and an estimate of Chrysos Cos value to the equity h
22、olders, after undertaking the restructuring programme.(18 marks)(ii) An explanation of the approach taken and assumptions made in estimating Chrysos Cos value to the equity holders, after undertaking the restructuring programme. (5 marks)(iii) A discussion of the impact of the restructuring programm
23、e on Chrysos Co and on the venture capital organisations. (10 marks)Professional marks will be awarded in part (b) for the format, structure and presentation of the report. (4 marks)（分数：37）_(3).Discuss why the attention Chrysos Co pays to its stakeholders represented on the supervisory board may cha
24、nge once it has obtained a listing.（分数：4）_Section B TWO questions ONLY to be attemptedBournelorth Co is an IT company which was established by three friends ten years ago. It was listed on a local stock exchange for smaller companies nine months ago.Bournelorth Co originally provided support to busi
25、nesses in the financial services sector. It has been able to expand into other sectors over time due to the excellent services it has provided and the high quality staff whom its founders recruited. The founders have been happy with the level of profits which the IT services have generated. Over tim
26、e they have increasingly left the supervision of the IT services in the hands of experienced managers and focused on developing diagnostic applications (apps). The founders have worked fairly independently of each other on development work. Each has a small team of staff and all three want their tea
27、ms to work in an informal environment which they believe enhances creativity.Two apps which Bournelorth Co developed were very successful and generated significant profits. The founders wanted the company to invest much more in developing diagnostic apps. Previously they had preferred to use interna
28、l funding, because they were worried that external finance providers would want a lot of information about how Bournelorth Co is performing. However, the amount of finance required meant that funding had to be obtained from external sources and they decided to seek a listing, as two of Bournelorth C
29、os principal competitors had recently been successfully listed.25% of Bournelorth Cos equity shares were made available on the stock exchange for external investors, which was the minimum allowed by the rules of the exchange. The founders have continued to own the remaining 75% of Bournelorth Cos eq
30、uity share capital. Although the listing was fully subscribed, the price which new investors paid was lower than the directors had originally hoped.The board now consists of the three founders, who are the executive directors, and two independent non-executive directors, who were appointed when the
31、company was listed. The non-executive directors have expressed concerns about the lack of frequency of formal board meetings and the limited time spent by the executive directors overseeing the companys activities, compared with the time they spend leading development work. The non-executive directo
32、rs would also like Bournelorth Cos external auditors to carry out a thorough review of its risk management and control systems.The funds obtained from the listing have helped Bournelorth Co expand its development activities. Bournelorth Cos competitors have recently launched some very successful dia
33、gnostic apps and its executive directors are now afraid that Bournelorth Co will fall behind its competitors unless there is further investment in development. However, they disagree about how this investment should be funded. One executive director believes that Bournelorth Co should consider selli
34、ng off its IT support and consultancy services business. The second executive director favours a rights issue and the third executive director would prefer to seek debt finance. At present Bournelorth Co has low gearing and the director who is in favour of debt finance believes that there is too muc
35、h uncertainty associated with obtaining further equity finance, as investors do not always act rationally.Required:（分数：25）(1).Discuss the factors which will determine whether the sources of finance suggested by the executive directors are used to finance further investment in diagnostic applications
36、 (apps).（分数：8）_(2).(i) Identify the risks associated with investing in the development of apps and describe the controls which Bournelorth Co should have over its investment in development. (6 marks)(ii) Discuss the issues which determine the information Bournelorth Co communicates to external finan
37、ce providers. (3 marks)（分数：9）_(3).(i) Explain the insights which behavioural finance provides about investor behaviour. (3 marks)(ii) Assess how behavioural factors may affect the share price of Bournelorth Co. (5 marks)（分数：8）_Buryecs Co is an international transport operator based in the Eurozone w
38、hich has been invited to take over a rail operating franchise in Wirtonia, where the local currency is the dollar ($). Previously this franchise was run by a local operator in Wirtonia but its performance was unsatisfactory and the government in Wirtonia withdrew the franchise.Buryecs Co will pay $5
39、,000 million for the rail franchise immediately. The government has stated that Buryecs Co should make an annual income from the franchise of $600 million in each of the next three years. At the end of the three years the government in Wirtonia has offered to buy the franchise back for $7,500 millio
40、n if no other operator can be found to take over the franchise.Todays spot exchange rate between the Euro and Wirtonia $ is 01430 = $1. The predicted inflation rates are as follows:Buryecs Cos finance director (FD) has contacted its bankers with a view to arranging a currency swap, since he believes
41、 that this will be the best way to manage financial risks associated with the franchise. The swap would be for the initial fee paid for the franchise, with a swap of principal immediately and in three years time, both these swaps being at todays spot rate. Buryecs Cos bank would charge an annual fee
42、 of 05% in for arranging the swap. Buryecs Co would take 60% of any benefit of the swap before deducting bank fees, but would then have to pay 60% of the bank fees.Relevant borrowing rates are:In order to provide Buryecs Cos board with an alternative hedging method to consider, the FD has obtained t
43、he following information about over-the-counter options in Wirtonia $ from the companys bank.The exercise price quotation is in Wirtonia $ per 1, premium is % of amount hedged, translated at todays spot rate.Assume a discount rate of 14%.Required:（分数：25）(1).Discuss the advantages and drawbacks of us
44、ing the currency swap to manage financial risks associated with the franchise in Wirtonia.（分数：6）_(2).(i) Calculate the annual percentage interest saving which Buryecs Co could make from using a currency swap, compared with borrowing directly in Wirtonia, demonstrating how the currency swap will work
45、. (4 marks)(ii) Evaluate, using net present value, the financial acceptability of Buryecs Co operating the rail franchise under the terms suggested by the government of Wirtonia and calculate the gain or loss in from using the swap arrangement. (8 marks)（分数：12）_(3).Calculate the results of hedging t
46、he receipt of $7,500 million using the currency options and discuss whether currency options would be a better method of hedging this receipt than a currency swap.（分数：7）_Toltuck Co is a listed company in the building industry which specialises in the construction of large commercial and residential
47、developments. Toltuck Co had been profitable for many years, but has just incurred major losses on the last two developments which it has completed in its home country of Arumland. These developments were an out-of-town retail centre and a major residential development. Toltuck Cos directors have blamed the poor results primarily on the recent recessi
