(c) Using the information contained in Appendix 1.2, compare the performance of HLP and MAS incorporating
relevant percentage and ratio statistics under the following headings:
(i) Competitiveness; (5 marks)
第1题:
(b) Using the information contained in Appendix 1.1, discuss the financial performance of HLP and MAS,
incorporating details of the following in your discussion:
(i) Overall client fees (total and per consultation)
(ii) Advisory protection scheme consultation ‘utilisation levels’ for both property and commercial clients
(iii) Cost/expense levels. (10 marks)
(ii) As far as annual agreements relating to property work are concerned, HLP had a take up rate of 82·5% whereas MAS
had a take up rate of only 50%. Therefore, HLP has ‘lost out’ to competitor MAS in relative financial terms as regards
the ‘take-up’ of consultations relating to property work. This is because both HLP and MAS received an annual fee from
each property client irrespective of the number of consultations given. MAS should therefore have had a better profit
margin from this area of business than HLP. However, the extent to which HLP has ‘lost out’ cannot be quantified since
we would need to know the variable costs per consultation and this detail is not available. What we do know is that
HLP earned actual revenue per effective consultation amounting to £90·90 whereas the budgeted revenue per
consultation amounted to £100. MAS earned £120 per effective consultation.
The same picture emerges from annual agreements relating to commercial work. HLP had a budgeted take up rate of
50%, however the actual take up rate during the period was 90%. MAS had an actual take up rate of 50%. The actual
revenue per effective consultation earned by HLP amounted to £167 whereas the budgeted revenue per consultation
amounted to £300. MAS earned £250 per effective consultation.
There could possibly be an upside to this situation for HLP in that it might be the case that the uptake of 90% of
consultations without further charge by clients holding annual agreements in respect of commercial work might be
indicative of a high level of customer satisfaction. It could on the other hand be indicative of a mindset which says ‘I
have already paid for these consultations therefore I am going to request them’.
(iii) Budgeted and actual salaries in HLP were £50,000 per annum, per advisor. Two additional advisors were employed
during the year in order to provide consultations in respect of commercial work. MAS paid a salary of £60,000 to each
advisor which is 20% higher than the salary of £50,000 paid to each advisor by HLP. Perhaps this is indicative that
the advisors employed by MAS are more experienced and/or better qualified than those employed by HLP.
HLP paid indemnity insurance of £250,000 which is £150,000 (150%) more than the amount of £100,000 paid by
MAS. This excess cost may well have arisen as a consequence of successful claims against HLP for negligence in
undertaking commercial work. It would be interesting to know whether HLP had been the subject of any successful
claims for negligent work during recent years as premiums invariably reflect the claims history of a business. Rather
worrying is the fact that HLP was subject to three such claims during the year ended 31 May 2007.
Significant subcontract costs were incurred by HLP during the year probably in an attempt to satisfy demand and retain
the goodwill of its clients. HLP incurred subcontract costs in respect of commercial properties which totalled £144,000.
These consultations earned revenue amounting to (320 x £150) = £48,000, hence a loss of £96,000 was incurred
in this area of the business.
HLP also paid £300,000 for 600 subcontract consultations in respect of litigation work. These consultations earned
revenue amounting to (600 x £250) = £150,000, hence a loss of £150,000 was incurred in this area of the business.
In contrast, MAS paid £7,000 for 20 subcontract consultations in respect of commercial work and an identical amount
for 20 subcontract consultations in respect of litigation work. These consultations earned revenue amounting to
20 x (£150 + £200) =£7,000. Therefore, a loss of only £7,000 was incurred in respect of subcontract consultations
by MAS.
Other operating expenses were budgeted at 53·0% of sales revenue. The actual level incurred was 40·7% of sales
revenue. The fixed/variable split of such costs is not given but it may well be the case that the fall in this percentage is
due to good cost control by HLP. However, it might simply be the case that the original budget was flawed. Competitor
MAS would appear to have a slightly superior cost structure to that of HLP since its other operating expenses amounted
to 38·4% of sales revenue. Further information is required in order to draw firmer conclusions regarding cost control
within both businesses.
第2题:
(c) Using sensitivity analysis, estimate by what percentage the life cycle of the Snowballer would need to change
before the recommendation in (a) above is varied. (4 marks)
第3题:
(ii) evaluates the relative performance of the four depots as indicated by the analysis in the summary table
prepared in (i); (5 marks)
第4题:
(b) A summary of the information needed to satisfy our obligations under the money laundering legislation and
any action that should be taken before agreeing to become tax advisers to the Saturn Ltd group. (5 marks)
第5题:
KFP Co, a company listed on a major stock market, is looking at its cost of capital as it prepares to make a bid to buy a rival unlisted company, NGN. Both companies are in the same business sector. Financial information on KFP Co and NGN is as follows:
NGN has a cost of equity of 12% per year and has maintained a dividend payout ratio of 45% for several years. The current earnings per share of the company is 80c per share and its earnings have grown at an average rate of 4·5% per year in recent years.
The ex div share price of KFP Co is $4·20 per share and it has an equity beta of 1·2. The 7% bonds of the company are trading on an ex interest basis at $94·74 per $100 bond. The price/earnings ratio of KFP Co is eight times.
The directors of KFP Co believe a cash offer for the shares of NGN would have the best chance of success. It has been suggested that a cash offer could be financed by debt.
Required:
(a) Calculate the weighted average cost of capital of KFP Co on a market value weighted basis. (10 marks)
(b) Calculate the total value of the target company, NGN, using the following valuation methods:
(i) Price/earnings ratio method, using the price/earnings ratio of KFP Co; and
(ii) Dividend growth model. (6 marks)
(c) Discuss the relationship between capital structure and weighted average cost of capital, and comment on
the suggestion that debt could be used to finance a cash offer for NGN. (9 marks)
第6题:
The following exhibit displays the NetFlow statistics for a CIS router, which will be helpful for a network administrator to collect IP traffic information.Which two numbers separately refer to the percentage of packets sized between 32 and 64 bytes and the number of flows in progress?()
A. 24.9%, 980
B. 6.94%, 980
C. 69.4%, 35
D. cannot be determined from this output
E. 69.4%, 4061
第7题:
第8题:
A technician wants to compare a new server performance over a period of time. Which of the following should the technician do FIRST?()
第9题:
When analyzing disk I/O performance, which of the following metrics and/or statistics should be included in the study?()
第10题:
The application workload on your database is same between 10 a.m. and 11 a.m. on weekdays. Suddenly you observe poor performance between 10 a.m. and 11 a.m. in the middle of the week. How would you identify the changes in configuration settings, workload profile, and statistics to diagnose the possible causes of the performance degradation?()
第11题:
by using the SQL access advisor
by using the Automatic Workload Repository report
by running the Automatic Database Diagnostic Monitor (ADDM)
by using the Automatic Workload Repository Compare Period report
by analyzing the output of the V$ACTIVE_SESSION_HISTORY view
第12题:
It detects any configuration change that caused a performance difference in both time periods.
It identifies any workload change that caused a performance difference in both time periods.
It detects the top wait events causing performance degradation.
It shows the resource usage for CPU, memory, and I/O in both time periods.
It shows the difference in the size of memory pools in both time periods.
It gives information about statistics collection in both time periods.
第13题:
(b) Using sensitivity analysis, estimate by what percentage each of the under-mentioned items, taken separately,
would need to change before the recommendation in (a) above is varied:
(i) Initial outlay;
(ii) Annual contribution. (4 marks)
第14题:
(ii) Briefly discuss THREE disadvantages of using EVA? in the measurement of financial performance.
(3 marks)
第15题:
(iii) assesses TSC in terms of financial performance, competitiveness, service quality, resource utilisation,
flexibility and innovation and discusses the interrelationships between these terms, incorporating
examples from within TSC; and (10 marks)
第16题:
You notice a performance change in your production Oracle database and you want to know which change has made this performance difference.You generate the Compare Period Automatic Database Diagnostic Monitor (ADDM) report to further investigation.Which three findings would you get from the report?()
A. It detects any configuration change that caused a performance difference in both time periods.
B. It identifies any workload change that caused a performance difference in both time periods.
C. It detects the top wait events causing performance degradation.
D. It shows the resource usage for CPU, memory, and I/O in both time periods.
E. It shows the difference in the size of memory pools in both time periods.
F. It gives information about statistics collection in both time periods.
第17题:
The following information is available for a manufacturing company which produces multiple products:
(i) The product mix ratio
(ii) Contribution to sales ratio for each product
(iii) General fixed costs
(iv) Method of apportioning general fixed costs
Which of the above are required in order to calculate the break-even sales revenue for the company?
A.All of the above
B.(i), (ii) and (iii) only
C.(i), (iii) and (iv) only
D.(ii) and (iii) only
The method of apportioning general fixed costs is not required to calculate the break-even sales revenue.
第18题:
All of the following can be found on a Pilot Chart EXCEPT information concerning the ______.
A.percentage of frequency of wave heights
B.percentage of poor visibility conditions
C.sea surface temperatures
D.amounts of precipitation
第19题:
Using the following information: Performance data from an existing system that a new system will replace; Performance estimates that anticipate future workloads; Micro-partitioning and logical partitioning implementations. Which of the following allows a technical sales representative to create a system design which can be imported into an HMC?()
第20题:
When the length of the run queues, process or thread dispatches interrupts, and lock contention metrics and statistics are analyzed for performance, which of the following resources is being analyzed?()
第21题:
You find today’s performance of your production database to be the best ever. Therefore, you want to be notified in the future whenever the performance degrades by 10% of today’s performance. What is the first step that you would take to ensure this?()
第22题:
You notice a performance change in your production Oracle database and you want to know which change has made this performance difference. You generate the Compare Period Automatic Database Diagnostic Monitor (ADDM) report to further investigation. Which three findings would you get from the report?()
第23题:
CPU
Memory
Disk I/O
Network I/O