Sources of Finance
ICAN Business, Management and Finance
13 Sources of Finance practice questions covering everything you need for ICAN.
Drill Sources of Finance →Sample Sources of Finance questions
QUESTION 1 Kaduna Textile Mills Plc (KTM) is a publicly quoted manufacturing company on the Nigerian Exchange Group (NGX). The Board of Directors is considering expanding its production capacity by e…
QUESTION 2 Oluwaseun Agro-Allied Limited (OAL) is a private limited liability company incorporated in Lagos, Nigeria. The company processes and exports cassava starch and earns revenues partly in USD…
QUESTION 3 Abuja Power Generation Company Plc (APGC) is a publicly quoted company on the Nigerian Exchange Group (NGX). The company generates and sells electricity under a Power Purchase Agreement (P…
Lagos Bridge Finance Ltd advances a ₦200,000,000 term loan to Abuja Steel Plc at an annual interest rate of 18%. The loan attracts withholding tax (WHT) at the applicable rate under the Companies Inco…
Which of the following best describes a 'rights issue' as a source of finance for a quoted public company in Nigeria?
Kano Textiles Plc is evaluating a finance lease versus an operating lease for a ₦80,000,000 weaving machine. Under IFRS 16, which statement correctly distinguishes the financial reporting impact of a …
Under the Companies and Allied Matters Act (CAMA) 2020, which of the following instruments can a private company lawfully issue to raise long-term finance from the general public?
Enugu Farms Ltd, a small company, obtains invoice discounting on a ₦12,000,000 receivable. The finance house charges a 3% service fee and advances 80% of the invoice value immediately. What is the imm…
Ibadan Solar Plc is computing its Weighted Average Cost of Capital (WACC). The company has the following market-value capital structure: Equity ₦600,000,000 (cost of equity 20%), 12% Bonds ₦400,000,00…
A Nigerian company raises finance by issuing a ₦500,000,000 convertible bond at 10% per annum, convertible into ordinary shares after five years. Which of the following correctly identifies a PRIMARY …
Port Harcourt Energy Plc has the following capital structure: ₦500,000,000 in 15% debentures and ₦1,000,000,000 in ordinary equity. The company's effective income tax rate under CITA is 30%. What is t…
Under the CAMA 2020, which of the following statements regarding the redemption of preference shares by a public company is CORRECT?
Eko Manufacturing Plc issues 5,000,000 ordinary shares at ₦10 par value for ₦14 per share. What amount will be credited to the Share Premium Account?