Question 1

PART A:

Financial managers are responsible for making many financial management decisions.

Required:

A. Explain what is involved in dividend policy decisions.

B. Give TWO examples of dividend policy decisions.

C. Explain why financial managers need a dividend policy for the firm.

D. Give TWO reasons for a firm not to pay dividends to its ordinary shareholders. (2 marks)

PART B:

Corporations need to raise finance from different sources.

Required:

A. Identify TWO main types of external financing for corporations?

B. Briefly explain the differences between the above two sources of financing. Give at least THREE arguments

part c)

Required : A. Explain what working capital management means .

B. Give TWO examples of working capital decisions

C. Explain what capital budgeting means .

D. Give TWO examples of capital budgeting decisions

A. What are the TWO major sources of external financing for corporations ?

B. In THREE points explain differences between the above two sources of financing?

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