LyP 3 marks each SECTION B a) In the 2020 accounting year, i. The board of directors of some manufacturing and services companies decided to pay stock dividends instead of cash dividends. ii. On the other hand, the board of directors of majority of companies within the ICT industry decided to pay special cash dividends. ili. It was also observed that some the management of some companies had decided to repurchase shares while others were engaging in stock splits. a. What could be the reason for these decisions and choice of dividend payments by the boards of these companies? b. What do you think will be the effect of such decisions on the outstanding number of shares and the share prices of these companies? king to buy financialvii. Under what condition is portfolio risk reduction not possible? Q7 a. GOIL issues renounceable rights In May 2016, GOIL Ghana Limited announced a renounceable rights issue, GOIL would issue shares of no par value, and at a price of GHS 1.24 per share and in a ratio of 0.5536 new shares for one held by a qualified shareholder. At the time of the announcement, GOIL's issued shares stood at 252.22 million. These shares were trading at GHS 1.38 per share. "Proceeds from the offer would be used to strengthen GOIL's balance sheet, expand its current retail outlets, acquire a lubricant blending plant, and expand facilities at the Takoradi Harbour, among others." Questions : market capitalization. Coil cull outstanding shares i. How much does GOIL expect to raise if all rights are exercised? ii. What will be GOIL's theoretical market value if all rights are exercised? ili. How many rights will be issued? GOIL is listed in Ghana? iv : For how much could shareholders not. willing to exercise sell their rights? V . What is the ex-rights price of a share?- not having the might again without might b. Developments in stock markets huge no of job Markets ended in negative territory on Monday following the addition of a staggering number of jobs to the U.S. economy. The report led to a surge in interest rates, resulting in benchmark 10-year yield rising to their highest levels since 2014. All the major benchmarks ended in the negative territory, with Dow posting its sixth biggest daily decline since inception. The Dow Jones Industrial Average (DJI) decreased 2.5%, to close at 24,345. The SeyP 500 fell 4.1% to close at 2,648.94. The tech-laden Nasdaq Composite Index closed at 6,967.53, losing 3.7%. The S&P/TSX (Toronto) dropped 271 points to close at 15,334.80 i. By these huge drops in all four indices, what message do you think investors are sending out? ii. Give a plausible explanation for the suggestion that an addition of a staggering number of jobs to the U.S. economy will unsettle financial markets. iii. At what level did the S&P/TSX start trading on February 5, 2018