Page 19 - SCS May 2018 - Day 2 Tasks

FINANCIAL STRATEGY (F3) - PRACTICE TASKS

EXERCISE TWO

UPDATE

You have just returned from lunch and on checking your email you find the following:

TRIGGER

Email

To: Senior Manager
From: Martine Andels, Director of Finance
Subject: Board briefing paper

I’ve attached an extract from this morning’s Board meeting from which you will see there is some
confusion among some of the Board members concerning gearing. Please can you produce the
briefing paper they have requested? I think you need to explain the general principles and then
give your thoughts on why our bankers might have given the advice they did. Oh, and please bear
in mind Marie’s closing comments!

Thanks
Martine

TASK

Prepare the email requested by Martine (Time allowed: 60 minutes)

(Refer to the Reference Materials overleaf)

KAPLAN PUBLISHING 33