FINANCIAL MANAGEMENT (FIN2601) ASSIGNEMNT 1 WITH QUESTIONS AND ANSWERS , PASS DISTINCTION

**Question 4** Kiddies County clothing company pays 6% interest on its outstanding debt, which amounts to R720 000. The company’s sales are R, its tax rate is 40% and its net profit margin is 10.7%. What is the company's time interest earned ratio? Complete Mark 1.00 out of 1.00 **Question 5** Evolve Health, a pharmaceutical company, has R87 960 in EBIT, R62 500 in interest expense, and R10 000 in preference share dividend with a tax rate of 30%. The company had 1 000 shares issued and outstanding. What is the company’s market-to-book ratio? Complete Mark 1.00 out of 1.00 **Question 6** Gold Screen Studios had a profit of R33 503 and a preference share dividend of R26 200 last year. The company’s sales were R714 000, its total assets turnover was 1,02, and the company’s return on equity (ROE) was 8%. What is the company’s debt ratio? Complete Mark 1.00 out of 1.00 **Question 7** The Hard Drive, a technology consulting company, has R in EBIT, a TIE ratio of 8.0, a tax rate of 35%, and a total assets turnover ratio of 1.25 with a sales value of R800 000. What is the company’s return on assets (ROA)? Complete Mark 1.00 out of 1.00 **Question 8** Intel Associates is a consulting business with R20 036 in cost of goods sold and an inventory turnover of 5.15. The company’s current assets were R25 227 and its current ratio was 2.85. What is the company’s quick ratio? Complete Mark 1.00 out of 1.00 **Question 9** Jacks Small Engines is aiming to accumulate R980 000 for equipment purchase five years from now. They plan to set aside an equal sum of money each quarter, starting today, with an expected return of 5.65%. What is the quarterly savings amount needed? Complete Mark 1.00 out of 1.00 **Question 10** Sofia's employer contributes R120 per week to her retirement plan for another 30 years, assuming a discount rate of 7.5%. What is the present value of this employee benefit to her? Complete Mark 1.00 out of 1.00 **Question 11** Golden Brick Constructors deposited R18 400 in an investment account a year ago and added R14 000 today. They plan to make a final deposit of R42 000 a year from today, with a 5.5% interest rate. How much will be available when they purchase the materials? Complete Mark 1.00 out of 1.00 **Question 12** Atlas Ventures has a future liability of R90 000 due in eight years. They plan to make an initial deposit today and then deposit R25 000 each year for the next eight years. The savings account offers a 7.5% rate of return. How much does the company need to deposit today to meet this obligation? Complete Mark 1.00 out of 1.00 **Question 13** Layla received an insurance settlement of R467 000 and plans to allocate it to her retirement savings, with retirement 30 years from today. What is the difference in her retirement account if she earns a 9.5% return versus a 7% return? Complete Mark 1.00 out of 1.00 **Question 14** Lincoln has been investing R750 every month for nine years, and his investment account holds R97 262 today. What is the average rate of return he has achieved? Complete Mark 1.00 out of 1.00 **Question 15** Paisley has a savings goal of R30 000 to achieve in 12 years. If she expects to earn an 8% return, how much less does she need to deposit today compared to a 6% return to reach her goal? Complete Mark 1.00 out of 1.00 **Question 16** Brittany's car dealer is offering her a new car lease at R2 345 per month for 72 months, starting today. Given an interest rate of 6.6%, what is the present value of the lease? Complete Mark 1.00 out of 1.00 **Question 17** Maverick has two options: annual gifts of R18 000, R22 000, R26 000, and R30 000 for the next four years or a single lump sum today. What is the minimum lump sum he would accept today, given a 12.5% discount rate? Complete Mark 1.00 out of 1.00 **Question 18** Cameron took out a R12 000 loan at a 9% interest rate to be repaid in four equal installments. How much interest does he need to pay in the first year? Complete Mark 1.00 out of 1.00 **Question 19** Abigail borrowed R6 200 on her credit card to buy a dining set at a 14.9% interest rate, compounded monthly. How long will it take to pay off the debt with regular monthly payments of R120? Complete Mark 1.00 out of 1.00 **Question 20** Nadine plans to retire at 60 and live until 85. Her retirement savings account holds R759 320, and she expects a 7% return during retirement. How much can she withdraw monthly to exhaust her savings by the time of her passing? Complete Mark 1.00 out of 1.00