FIN203 Corporate Finance

Question 1Your team is considering opening a business together. Given the economic impact of the COVID-19 crisis, you are particularly concerned about the performance and the financial health of the company you are planning to create together. As you are still unsure about the consequences of COVID-19 on your particular business, you decide collectively to explore the implication for some of the worst hit industry sectors globally. FIN203 Group-based Assignment Page 3 of 5To answer this question set, you are asked to apply what you know of the three (3) basic decisions of financial management to different kinds of business in the COVID-19 context. Your answer should be less than  for each sub-question – (a), (b) and (c).

(a)Indicate and analyse how the COVID-19 situation can affect capital budgeting decisions in an oil and gas company.

(b)Indicate and analyse how the COVID-19 situation can affect financing decisions in an international hotel chain business.

(c)Indicate and analyse how the COVID-19 situation can affect working capital management decisions in a fashion retail outlet company.

Question 2After a few years, your team’s business has thrived. You are approached by the private banker of a renowned institution to invest your hard-earned cash in securities.The first investment proposal is a single stock for a company called Atlas. Atlas has the following historical price quotes and dividend payments