Accounting and Finance for Managers

SCHOOL OF BUSINESS, ECONOMICS AND MANAGEMENT HRM310: FINANCIAL MANAGEMENT
ASSIGNMENT
DUE DATE: MARCH 15, 2013

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Instructions to Candidates:

1. Ensure that you have the correct assignment paper with you. 2. All questions in this paper should be answered 3. One mark will be allocated for neatness and clarity of presentation 4. Plagiarism is not permissible.

QUESTION ONE i. Discuss the role that Capital markets play in the economic development of a country like Zambia.
(10 marks) ii. You have just recruited a financial manager in your organization. Discuss briefly the role that she will play in the entity’s business.

(15marks)
Total (25 marks)

QUESTION TWO a) What is meant by appropriate capital structure? Discuss the determinants and features of an appropriate capital structure for a corporate body (10 marks) b) What is meant by dividend stability? Explain about the types of dividends and the factors which influence the dividend policy of a firm (15 marks)
Total (25 marks)

QUESTION THREE a) In managing cash, the Finance Manager faces the problem of compromising the conflicting goals of “liquidity and profitability”. Comment on this statement. How would you determine the optimum cash balance in a business organization?
(13 marks) b) Discuss the major nontraditional sources of long term financing and explain their significance as a source financing (12 marks)
Total (25 marks)
QUESTION FOUR
ZAMCROP Plc has successfully acquired farms under former Ndola Rural ETC Fuel-energy Limited as it becomes the first