2024
FIN2601 ASSIGNMENT 1
SEMESTER 1 2024DUE
DATE: 10 APRIL 2024
FIN2601 ANSWERS
,QUESTION 4
The financial metrics for Crystal Globe Travel include a total asset turnover of 1.25, a
return on equity
(ROE) of 14.30%, and a debt ratio of 15%. With total assets amounting to R3 588 as
per the statement of
financial position, and considering the financing structure comprising both debt and
equity, what is the
net profit margin of the company?
Answer: option 2 Net Profit Margin = R436.12 / R4 485
= 9.72%
Calculations
Net Income = ROE * Total Equity
= 14.30% X [R3 588 - (R3 588 X 15%)]
= 14.30% X (R3 588 – R538.20)
= 14.30% X R3 049.80
= R436.12
Total Revenue = Total Asset Turnover X Total Assets
= 1.25 X R3 588
= R4 485
, Question 1
Which one of the following statements articulates the dictinction between the capital
market and the
money market?
Answer: option 1 the capital market deals with long-term securities, while the money
market deals with
short-term instruments.
FIN2601 ASSIGNMENT 1
SEMESTER 1 2024DUE
DATE: 10 APRIL 2024
FIN2601 ANSWERS
,QUESTION 4
The financial metrics for Crystal Globe Travel include a total asset turnover of 1.25, a
return on equity
(ROE) of 14.30%, and a debt ratio of 15%. With total assets amounting to R3 588 as
per the statement of
financial position, and considering the financing structure comprising both debt and
equity, what is the
net profit margin of the company?
Answer: option 2 Net Profit Margin = R436.12 / R4 485
= 9.72%
Calculations
Net Income = ROE * Total Equity
= 14.30% X [R3 588 - (R3 588 X 15%)]
= 14.30% X (R3 588 – R538.20)
= 14.30% X R3 049.80
= R436.12
Total Revenue = Total Asset Turnover X Total Assets
= 1.25 X R3 588
= R4 485
, Question 1
Which one of the following statements articulates the dictinction between the capital
market and the
money market?
Answer: option 1 the capital market deals with long-term securities, while the money
market deals with
short-term instruments.
