A company is preparing an integrated report according to the International <IR> Framework as issued by the International Integrated Reporting Council.
Which THREE of the following should be included in the report?

• A.A detailed analysis of the organisation's business model.
• B.The challenges and uncertainties that the organisation is likely to encounter in pursuing its strategy.
• C.An explanation of how the organisation's governance structure supports its ability to create value in the short, medium and long term.
• D.A comparison of the key elements of its financial statements with those of its main competitor.
• E.A summary of the key issues discussed by directors in main board meetings.

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Company A operates in country A with the AS as its functional currency. Company A expects to receive BS500.000 in 6 months' time from a customer in Country B which uses the B$.
Company A intends to hedge the currency risk using a money market hedge The following information is relevant:

What is the AS value of the BS expected receipt in 6 months' time under a money market hedge?

• A.AS32, 051
• B.AS32, 532
• C.AS31, 482
• D.AS31, 790

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A company plans to cut its dividend but is concerned that the share price will fall. This demonstrates the _____________ effect

• A.B
• B.A

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A company has:
* A price/earnings (P/E) ratio of 10.
* Earnings of $10 million.
* A market equity value of $100 million.
The directors forecast that the company's P/E ratio will fall to 8 and earnings fall to $9 million.
Which of the following calculations gives the best estimate of new company equity value in $ million following such a change?
A)

B)

C)

D)

• A.Option A
• B.Option B
• C.Option D
• D.Option C

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A listed entertainment and media company produces and distributes films globally. The company invests heavily in intellectual property in order to create the scope for future film projects. The company has five separate distribution companies, each managed as a separate business unit The company is seeking to sell one of its business units in a management buy-out (MBO) to enable it to raise finance for proposed new investments The business unit managers have been in discussions with a bank and venture capitalists regarding the financing for the MBO The venture capitalists are only prepared to invest a mixture of debt and equity and have suggested the following:

The venture capitalists have stated that they expect a minimum return on their equity investment of 30% a year on a compound basis over the first 5 years of the MBO No dividends will be paid during this period.
Advise the MBO team of the total amount due to the venture capitalist over the 5-year period to satisfy their total minimum return?

• A.$111 39 million
• B.$120 14 million
• C.$146 39 million
• D.$155.14 million

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