FIN2603 - Finance For Non-Financial Managers (FIN2603)
Exam (elaborations)
FIN2603 ASSESSMENT 2 OF SEM 2 2023 EXPECTED QUESTIONS AND ANSWERS
182 views 7 purchases
Course
FIN2603 - Finance For Non-Financial Managers (FIN2603)
Institution
University Of South Africa (Unisa)
THIS DOCUMENT HAS BEEN CAREFULLY PREPARED BY YOUR TOP TUTORS. IT PROVIDES GUIDANCE ON EXPECTED QUESTIONS AND POSSIBLE ANSWERS TO FIN2603 ASSESSMENT 2 OF SEM 2 2023. USING IT CORRECTLY AS A GUIDE WILL HELP YOU SCORE ABOVE 80%
FIN2603 - Finance For Non-Financial Managers (FIN2603)
All documents for this subject (27)
Seller
Follow
oscardiura
Reviews received
Content preview
Started on Tuesday, 12 September 2023, 7:00 AM
State Finished
Completed on Tuesday, 12 September 2023, 7:57 AM
Time taken 56 mins 51 secs
Question 1 What amount must be invested annually (at the beginning of each year) for 5 successive years
Complete at 8% p.a. compounded interest in order to yield R500 000?
M arked out of
1.00 a. R89 383.21
b. R92 000.44
c. R78 915.03
d. R82 047.05
Question 2 The financial manager is evaluating a proposal for a new project with the following cash flows:
Complete Year Net cash flows 0 -R 1 000 000 1 R 550 000 2 R 350 000 3 R 90 000The payback
period is ...
M arked out of
1.00
a. two years.
b. between one and two years.
c. three years.
d. more than three years.
Question 3 Mr Hamilton has arranged for a 90-day loan at an annual rate of interest of 8%. If the loan
Complete amount is R1000 000, how much interest in rand terms will Megatron pay? (Assume a 365-day
year)
M arked out of
1.00
a. R0
b. R19 726.03
c. R80 000.00
d. R20 000.00
, Question 4 A company has financed 45% of its assets through a 11% after-tax cost of debt loan. The
Complete remainder of its assets are financed through equity. The firm’s required return on equity is 16%.
Calculate the company's weighted average cost of capital (WACC)?
M arked out of
1.00
a. 11.25%
b. 43.56%
c. 28.50%
d. 13.75%
Question 5 Calculate the EOQ based on the following information: 21 000 units used annually, purchased at
Complete R65 per unit. Order cost is R340 per order. Carrying cost is 9% of inventory value.
M arked out of
1.00 a. 1 599 units
b. 1 614 units
c. 1 562 units
d. 1 633 units
Question 6 A firm with a cash conversion cycle of 40 days can stretch its average payment period from 15
Complete days to 20 days. This will result in a/an ...
M arked out of
1.00 a. increase of 20 days in the cash conversion cycle.
b. decrease of 5 days in the cash conversion cycle.
c. decrease of 20 days in the cash conversion cycle.
d. increase of 5 days in the cash conversion cycle.
Question 7 The before-tax cost of debt for a firm which has a 35% marginal tax rate is correctly calculated
Complete at 12%. Calculate the after-tax cost of debt.
M arked out of
1.00 a. 9.6%
b. 8.4%
c. 7.8%
d. 12.0%
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller oscardiura. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $6.02. You're not tied to anything after your purchase.
