ACCA考试P9模拟测试题及答案解析

　　Question：Which of the following is not a valid reason why the directors of a company might decide to retain earnings rather than pay them out as dividends?

　　A. Retention of earnings avoids the possibility of a change in control resulting from an issue of new shares

　　B. Finance from retained earnings has no cost as a source of finance.

　　C. The shareholders generally wish to make a capital profit

　　D. Retention of earnings allows the directors to undertake investment projects without involving the shareholders

　　The correct answer is: Finance from retained earnings has no cost as a source of finance.

　　解析：Finance from retained earnings has the same cost as the rest of the equity capital. However their use does not incur transaction costs.

　　If the shareholders wish to make a capital profit (2) then they will prefer their income in the form of capital growth rather than dividends. Thus they will be in favour of the company operating a policy of high retentions.

　　Since no change is made to the structure of the ownership of the business, the use of retentions (3) does avoid the possibility of a change in control.

　　4 is a valid reason. In this situation the directors will not have to go to the general meeting to obtain permission for a further capital issue to finance new projects. The use of retained earnings therefore allows them greater autonomy in their decisions.

　　Question：BC Co has identified two mutually exclusive projects which have an equivalent effect on the risk profile of the company. Project 1 has a payback period of 2.8 years, an NPV of $17,200, an internal rate of return of 18% and an average accounting rate of return of 19%. Project 2 has a payback period of 3.2 years, an NPV of $15,700, an internal rate of return of 22% and an average accounting rate of return of 21%. The cost of capital is 15%.

　　Assuming that the directors wish to maximise shareholder wealth and no shortage of capital is expected, which project should the company choose?

　　A. Project 2 because it has the higher internal rate of return.

　　B. Project 1 because it has the shorter payback period.

　　C. Project 1 because it has the higher net present value.

　　D. Project 2 because it has the higher accounting rate of return.

　　The correct answer is: Project 1 because it has the higher net present value.

　　Net present value is the appraisal method to adopt when mutually exclusive projects exist and the aim is to maximise shareholder wealth.