NANCE FOR MANAGER.pdf 7/8 1 100% + QUESTION 5 (20 MARKS) A. Explain TWO (2) factors affecting dividend policy decisions. (4 marks) B. The Roronoa Corporation is considering two mutually exclusive projects. The cash flows associated with those projects are as follows: Year Project A Project B 0 -60,000 -60,000 16,000 0 2 16,000 0 3 16,000 0 4 16,000 0 5 16,000 100,000 The required rate of return of these projects is 12%. ACCT 521... Microsoft... FE ACCT5... W Final exa... 3 16,000 16,000 5 16,000 The required rate of return of these projects is 12%. i. Calculate each project's payback period? (3 marks) ii. Calculate each project's net present value? (3 marks) iii. Discuss the investment decision should be made by the company and why. (2 marks) CLO3:PLO8:C5 CT 521... Microsoft... FE ACCTS... 0 0 100,000 W Final exa... JOXY 7951384 1522 VEEOD PPJ1J HANCE FOR MANAGER.pdf 8/8 100% + C. Gemilang Corp. is considering an investment in one of the two common shares. COMMON SHARE A COMMON SHARE B Probability Return Probability Return 0.30 12% 0.20 -6% 0.40 16% 0.30 7% 20% 0.30 15% 0 0 0.20 23% Required: Given the information above calculate the expected rate of return, variance and recommend which investment is preferred. (8 marks) CLO3:PLO8:C5 ACCT 521... Microsoft... FE ACCT5... E W Final exa