DSC1630 Assignment 4 (COMPLETE ANSWERS) Semester 1 2025 (239973) - DUE 8 May 2025;

"Question 1 Not yet answered Marked out of 1.00 QUIZ An investment with an initial outlay of R500 000 generates five successive annual cash inflows of R75 000, R190 000, R40 000, R150 000 andR180 000, respectively. The cost of capital K is 10% per annum. The internal rate of return (IRR) is a. 27,0%. b. 21,3%. c. 9,48%. d. 7,78%. Clear my choice DSC1630-25-S1  Welcome Message  Assessment 4 Question 2 Not yet answered Marked out of 1.00 QUIZ The equation for the present value of stock CCC on 17 December 2025 is given by The half-yearly coupon rate d is equal to a. 8,55%. b. 14,70%. c. 6,75%. d. 7,35%. Clear my choice 107, 55174 = da2¬9 0,135÷2 + 100(1 + ) 0, 135 2 −29 DSC1630-25-S1  Welcome Message  Assessment 4 Question 3 Not yet answered Marked out of 1.00 QUIZ A ................... is a representative group or subset of the population. It is the portion of the population that is selected for analysis. The missingword is a. deviation. b. mean. c. regression. d. sample. Clear my choice DSC1630-25-S1  Welcome Message  Assessment 4 Question 4 Not yet answered Marked out of 1.00 QUIZ The percentage of the total variation explained by the regression model is known as the a. coefficient. b. correlation. c. coefficient of determination. d. variance. Clear my choice DSC1630-25-S1  Welcome Message  Assessment 4 Question 5 Not yet answered Marked out of 1.00 QUIZ The following table supplies data of the infl ation rate and the corresponding prime lending rate during the same time period. Inflation rate (%) x Prime rate (%) y 3,3 5,2 6,2 8,0 11,0 10,8 9,1 7,9 5,8 6,8 6,5 6,9 7,6 9,0 The linear relationship between the inflation rate and the prime lending rate can be represented by the regression line a. y = 3,17477 + 0,65407x. b. y = 0,65407 + 3,17477x. c. y = −2,76656 + 1,26128x. d. y = 1,26128 − 2,76656x. Clear my choice DSC1630-25-S1  Welcome Message  Assessment 4 Question 6 Not yet answered Marked out of 1.00 QUIZ The following table supplies data of the infl ation rate and the corresponding prime lending rate during the same time period. Inflation rate (%) x Prime rate (%) y 3,3 5,2 6,2 8,0 11,0 10,8 9,1 7,9 5,8 6,8 6,5 6,9 7,6 9,0 The correlation coefficient to three decimal places, is a. +0,908. b. −0,908. c. +0,495. d. +0,546. Clear my choice DSC1630-25-S1  Welcome Message  Assessment 4 Question 7 Not yet answered Marked out of 1.00 QUIZ The following table supplies data of the infl ation rate and the corresponding prime lending rate during the same time period. Inflation rate (%) x Prime rate (%) y 3,3 5,2 6,2 8,0 11,0 10,8 9,1 7,9 5,8 6,8 6,5 6,9 7,6 9,0 The coefficient of determination (accurate to three decimals) is a. 0,298. b. 0,245. c. 0,825. d. not solvable. Clear my choice DSC1630-25-S1  Welcome Message  Assessment 4 Question 8 Not yet answered Marked out of 1.00 QUIZ An investment with an initial outlay of R500 000 generates five successive annual cash inflows of R75 000, R190 000, R40 000, R150 000 andR180 000, respectively. The cost of capital K is 10% per annum. The net present value (NPV) is approximately a. −R135 000. b. −R30 523. c. R74 500. d. R135 000. Clear my choice DSC1630-25-S1  Welcome Message  Assessment 4 Question 9 Not yet answered Marked out of 1.00 QUIZ An investment with an initial outlay of R500 000 generates five successive annual cash inflows of R75 000, R190 000, R40 000, R150 000 andR180 000, respectively. The cost of capital K is 10% per annum. The profitability index (PI) is a. 0,34369. b. 0,93895. c. 0,27000. d. 0,65631. Clear my choice DSC1630-25-S1  Welcome Message  Assessment 4 Question 10 Not yet answered Marked out of 1.00 QUIZ The following table represents the cash fl ows (in rand) of a company. Year Cash flows 3 40 000 5 -70 000 7 -80 000 9 10 000 11 100 000 Money can be borrowed at 14,25% per year and investments can earn 8,27% per year. The present value of the cash outflows is a. R122 557,45. b. R132 898,63. c. R67 444,26. d. R92 920,21. Clear my choice DSC1630-25-S1  Welcome Message  Assessment 4 Question 11 Not yet answered Marked out of 1.00 QUIZ The following table represents the cash fl ows (in rand) of a company. Year Cash flows 3 40 000 5 -70 000 7 -80 000 9 10 000 11 100 000 Money can be borrowed at 14,25% per year and investments can earn 8,27% per year. The MIRR given that the future value of the cash inflows is R187 253,00, is a. 22,66%. b. 8,85%. c. 9,73%. d. 13,62%. Clear my choice DSC1630-25-S1  Welcome Message  Assessment 4 Question 12 Not yet answered Marked out of 1.00 QUIZ Consider BOND HHH Coupon rate: 9,4% per year Yield to maturity: 10,6% per year Settlement date: 16 July 2025 Maturity date: 9 October 2051 The all-in price is a. R91,91965%. b. R89,45121%. c. R94,15121%. d. R82,63215%. Clear my choice DSC1630-25-S1  Welcome Message  Assessment 4 Question 13 Not yet answered Marked out of 1.00 QUIZ Consider BOND HHH Coupon rate: 9,4% per year Yield to maturity: 10,6% per year Settlement date: 16 July 2025 Maturity date: 9 October 2051 The accrued interest is a. R2,52384%. b. R2,18904%. c. R4,36612%. d. R2,51694%. Clear my choice DSC1630-25-S1  Welcome Message  Assessment 4 Question 14 Not yet answered Marked out of 1.00 QUIZ Consider BOND HHH Coupon rate: 9,4% per year Yield to maturity: 10,6% per year Settlement date: 16 July 2025 Maturity date: 9 October 2051 The clean price is a. R87,26217%. b. R89,39581%. c. R84,80721%. d. R89,73061%. Clear my choice DSC1630-25-S1  Welcome Message  Assessment 4 Question 15 Not yet answered Marked out of 1.00 QUIZ The settlement date of Bond F234 is 23 May 2025. The price on the coupon date that follows the settlement date is denoted by which is the value of the bond at the next coupon date, excluding the next coupon that is due. The all-in price = The maturity date of Bond F234 is a. 12 June 2046 b. 25 November 2046. c. 12 December 2046. d. 23 November 2053"