Analyze the Implications of finance of as a resource

business (Leemlng Outcome 2)
Max 600 words: Select any company listed on a UK stock exchange. Write a brief
report using the section headers provided and carry out the following tasks with
reference to the fund raising activities of that company.
[ngggmfigm Explain what you are doing in this paper. explain what sources you
have used. and explain how the paper is structured. Briefly describe the company
you have selected.
e§_qgp_1: Analyse a. the tangible and b. opportunity costs of the following sources
of finance” (AC 2.1)

1a Issue of 5m ordinary shares at an offer price of £1.50 each.

lb. issue of 5m bond. paying 8% per annum. redeemable in 10 years, with a
face value of£1.00. at an offer price of £0.80.

1c. Cancelling the proposed dividend of £0.05 per share
g§glgn_z: Explain the importance of financial planning to the management of a very
large listed company (AC 2.1)
9_g_tl_gp_§_;_ Assess the information needs of the different decisions makers involved
In the fund raising activities of the UK listed company you have selected (AC 2.3)
ggt_l_Qn4:_ explain how any two of the following financing activities will affect the
published financial statements of the UK listed company you have selected and how
the following indicators will alter: PE ratio! EPS ratio! ROCE.

4a. Issue of 5m ordinary shares at an offer price of £1 .50 each.

4b. issue of 5m bond, paying 8% per annum, redeemable in 10 years, with a
face value of £1.00. at an offer price of £0.80.

4c. Cancelling a proposed dividend of £0.05 per share
refer to the above and briefly explain what you think are the main
implications of finance as a resource within a business.