Hi Tutors. Do help me with question 1, 2(c) and 3. Please provide clear and detailed answers. Thank you.

FIN355 Equity Securities Tutor-Marked Assignment July 2017 Presentation FIN355 Tutor-Marked Assignment TUTOR-MARKED ASSIGNMENT (TMA) This assignment is worth 20% of the final mark for FIN355 Equity Securities. The cut-off date for this assignment is 4 October 2017, 2355hrs. In this assignment, you are expected to: Apply economic analysis, industry analysis and company analysis Value a company's shares Formulate reports on equity analysis Demonstrate the essential knowledge and interpersonal skills to work effectively in a team Demonstrate proficiency in writing Question 1 Differentiate among bond, common stock and preferred stock from the perspective of risk, relationship of risk to dividend/coupon rates, and possible recurring income features to the investors. (40 marks) Question 2 Given the following: EBIT EBIT (1-T) Depreciation and Amortization Capital Expenditures Increase in Net Working Capital Interest payment Tax rate at 17% 80.0 66.4 33.0 11.2 32.7 5.0 (a) Compute FCFF. (4 marks) (b) Compute FCFE. (8 marks) (c) Analyse the likely impact on FCFF and FCFE from an increase of dividend policy. (8 marks) SINGAPORE UNIVERSITY OF SOCIAL SCIENCES (SUSS) Page 2 of 4 FIN355 Tutor-Marked Assignment Question 3 Discuss what happens to FCFF and FCFE when: (a) Borrowing is increased (b) Borrowing is paid back [20 marks] SINGAPORE UNIVERSITY OF SOCIAL SCIENCES (SUSS) Page 3 of 4 FIN355 Tutor-Marked Assignment REPORT QUALITY (20 marks) Your report will be assessed for quality, conciseness and appropriate use of reporting aids (graphs, tables and illustrations, etc.) The total marks allocated for this part of the assignment is 20 marks broken down as follows: (a) Layout and formatting A well-formatted cover page is provided [2 marks] Format follows a logical reporting flow [1 mark] Format is consistent throughout report [1 mark] Layout follows guideline of not more than 10 pages [1 mark] (b) Clarity and standard of language used The arguments are cogent and consistent [3 marks] No excessive spelling or grammatical errors Language is graded Good use of technical vocabulary [2 marks] [2 marks] [3 marks] (c) Use of presentation aids Use graphs, tables and/or other visual aids [5 marks, 1 mark per aid] ---- END OF ASSIGNMENT ---- SINGAPORE UNIVERSITY OF SOCIAL SCIENCES (SUSS) Page 4 of 4