The article comments that CSL confirmed after Tuesdays market close that it has offered to buy Vifor, in a deal that values Vifor at $US11.7 billion.CSL will be funding the deal through a combination of existing cash, existing and new debt and share placements to both institutional and retail investors(the deal) is expected to be immediately earnings per share accretive. 

2. Explain what a retail share purchase plan is (1 mark) and conducting your own research (reference your source in your answer), describe/discuss the final terms of the CSL retail offer (you will NOT need to discuss the pro rata scale back used by CSL) (3 marks). 4marks

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2. Explain the difference between the retail share purchase plan in a) and the share placement program for institutional investors, including at least 2 advantages for CSL in including the placement in their capital raising. 4marks

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2. Explain what a non underwritten share purchase plan is. In your answer, referring specifically to the CSL offerings, include an explanation of underwriting and the concept of:

• fully underwritten vs
• non underwritten. 5marks

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2. Discuss what earnings per share (EPS) means and one of the shortcomings of using the EPS ratio. In this context, research how many new fully paid shares in CSL where issued under the SPP and discuss the terms earnings per share accretive vs earnings per share dilutive. 5marks

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2. How does the issue of more capital assist CSLs Balance Sheet? (2 marks) In your answer, also define/explain what debt and equity are, describing at least 1 characteristic of each type of funding. 6marks

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2. Discuss CSLs plans to raise debt via bonds. In your answer:
   2. Describe 3 features of Term Loans (3 marks) and 3 features of Bonds (3 marks) as they would apply to the Vifor acquisition and comment on CSLs choice to issue bonds rather than utilise a Term Loan for this acquisition (2 marks); 8marks

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2. Describe how Mortgage finance operates (2 marks) and comment on why a mortgage loan would not be suitable for the Vifor acquisition (1 mark) 3marks

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2. Using research you undertake, record the actual debt CSL actually issued (1 mark) and explain the impacts of CSL issuing notes instead of debentures.(3 marks) 4marks

> Question 2 26 marks CSL has conducted the acquisition of Vifor using USD valuations and it has large US operations overall. As the deal took several months to finalise, CSL would have taken steps to manage the risk surrounding potential volatility in the FX market. Spot rates in November 2021, while negotiations were being undertaken, were being quoted at around USD/AUD 1.3836-46. In the context of this quote:

2. Explain the terms: (2 marks- mark each for description, mark for referencing the quote above)
   2. Base currency
   4. Terms currency 2marks

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2. Explain from the perspective of the dealer what the FX quote indicates, including in your answer reference to the bid and offer prices mentioned in the question (ie what the dealer will specifically buy or sell). 4marks

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2. Starting with the existing quotation, transpose the quotation showing each step and state the rule that applies to transposing existing rate quotes. 4marks

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2. The quote from the dealer is a spot transaction, but CSL will have tried to manage the risk of fluctuating currencies between the announcement date and the future acquisition date.

2. Describe what the value date refers to when discussing FX transactions. 1mark

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2. Explain the difference between the value date for spot foreign exchange transaction, and Tod, Tom and Forward transactions? (3 marks) In your explanation, give dated examples of a Spot, Tom and Forward transaction using the USD/AUD quote above, assuming the date the transaction was entered into in was Monday November 14th. 6marks

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2. Assuming the transaction was for AUD1million, outline what happens if CSL places a Spot order with a dealer to buy AUD1million on Mon November 14^th. 2marks

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2. What is the product that CSL would use to lock in currency prices on amounts being converted? 1mark

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2. Using the internet, research the AUD/USD as well as the CHF/AUD exchange rate for the date that the article was written. In your answer:
   2. record the exchange rates for that date using the midmarket rate 1 mark

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2. outline what the midmarket rate is and why its used 2 marks

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2. calculate how much CSL is valuing the Vifor deal at in AUD 1 mark

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2. calculate the AUD share price of Vifor using the 140.3 Swiss franc valuation mentioned in the article, and 1 mark

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2. estimate the number of Vifor shares on offer at that date, using your answers from ii and iii. 1 mark