FACULTY OF COMMERCE

DEPARTMENT OF BANKING AND FINANCE

BBFH209 / BBFH329: BUSINESS FINANCE 11
ASSIGNMENTS FOR AUGUST 2022
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ASSIGNMENT 2

1. Discuss various defence mechanisms to prevent mergers and acquisitions in

Zimbabwe (25 marks).

2. Keabetswe Limited based in Gwanda has sales valued at $30,000,000.00 in Harare

and we are given that the current mail float is 4 days, process float is 2 days and
clearing float is 21 days. If Keabetswe Limited uses a sales office in Harare to receive
sale proceeds in the form of cheques, mail float will be 2 days, process float would be
zero and a clearing float of 7 days will be experienced. For the sales office to be
situated in Harare, it will cost $100,000.00. Sale proceeds received will be used to
reduce the Keabetswe Limited`s overdraft that attracts an interest of 25%.

As a business finance expert, give a report to the management of Keabetswe Limited

with sound business reasoning articulated on whether to implement the above-
mentioned business proposal or not (25 marks).