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Part A (Case Study Research) Select a company listed on the South Pacific Stock Exchange (SPSE) and answer the following questions.

Part A (Case Study Research)Select a company listed on the South Pacific Stock Exchange (SPSE) and answer the followingquestions.You have been selected as an Investment Consultant by company that you have selected and the ChiefInvestment Officer wants you to assist him in analyzing the company's Investment portfolios.1. Explain the nature of the company and identify stakeholders of this company.2. Advise the Chief Investment Officer if the company is subject to any unsystematic risk.3. Based on the current share price, do you think this company has performed well over the past fiveyears? Why?4. Examine any investment projects the company has taken in the past and critically examine if thatproject increased the wealth of the shareholders. What project evaluation methods did the companyuse? Is the company planning to undertake any further projects in the future?5. Your company just recently purchased Fiji Government Bonds to raise finance. Surprisingly, theEarnings Per Share (EPS) had increased. The Chief Investment Officer is confused and wants youradvice. Advise the Chief Investment Officer on why the EPS might have increased.6. Calculate the Earnings Per Share (EPS) and the Market Capitalization of this company. Do you seeany growth patterns in the company's Dividends?7. You have been approached by an investor and the investor wants advice whether or not to invest inyour company. As the Investment Consultant, advise the investor on whether or not he should investin your company.Total marks: 60 marks

Part B: Calculation Question (This question is independent to Part A)Green Tree Golf has decided to sell a new line of golf clubs. The club will sell for $700 per set andhave a variable cost of $340 per set. The company has spent $150,000 for a marketing study thatdetermined the company will sell 46,000 sets per year for seven years. The marketing study alsodetermined that the company will lose sales of 12,000 sets of its high-priced clubs. The high-pricedclubs sell at $1100 and have variable costs of $550. The company will also increase sales of its cheapclubs by 20,000 sets. The cheap clubs will sell for $300 and have variable costs of $100 per set. Thefixed costs each year will be $8,000,000. The company has also spent $1,000,000 on research anddevelopment for the new clubs. The plant and equipment required will cost $16,100,000 and will bedepreciated on a straight line basis.The new clubs will also require an increase in net working capital of $900,000 and that will be returnedat the end of the project. The tax rate is 30%, and the cost of capital is 14%. Calculate the paybackperiod and Net Present Value followed by your recommendations.Total marks: 30 marks

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