173-OCR_F297_June_2011_Mock_Paper_3

173-OCR_F297_June_2011_Mock_Paper_3 - price/earnings ratio)...

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OCR F297 June 2011 Mock Paper 3 Data available on the day of the exam: At a recent shareholders’ meeting, several of the original investors expressed a desire to sell their shares. When BPL was originally set up, 5000 shares were issued at a price of £100 each. Since then, the business has grown and the value of the land and buildings has appreciated. The company has also retained some of the profits it has made. BPL have reported a net profit of £250,000 and plan to pay a dividend of £50,000. BPL employ a total of £4m of capital. 1 a) Calculate three shareholder ratios (dividend per share, dividend yield and
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Unformatted text preview: price/earnings ratio) and Return on Capital Employed at BPL. [13] b) Discuss the extent to which BPLs strategic plans may be influenced by an analysis of their current financial position. [18] 2. Evaluate the extent to which there should be anxiety that the fortunes of BPL are increasingly reliant on peripheral income streams (line 125). [18] 3. Should BPLs shareholders decide upon a set of specific objectives for the period 2011 to 2016? [18] 4. Evaluate the main obstacles to implementing change at BPL. [23]...
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