• Wrong document? Swap it for free
  • Written by students who passed
  • Immediately available after payment
  • Read online or as PDF
  • 4,6 TrustPilot
0
Sell
Where do you study
Your language
Start selling Create your account
To add items to your wishlist, you must be logged in
Document preview thumbnail
Preview 2 out of 8 pages
Exam (elaborations)

FIN3701 Assignment 2 (COMPLETE ANSWERS) Semester 2 2026 - DUE 8 September 2026

5,0
(2 reviews)
10 sold
8 pages
2026/2027 Written for academic year
Institution University Of South Africa (Unisa)
Course Education Law (FIN3701)
Document preview thumbnail
Preview 2 out of 8 pages

Exam study book Financial & Managerial Accounting of Jan Williams, Sue Haka, Mark Bettner, Joseph Carcello - ISBN: 9780073526997

Content preview

FIN3701
Assignment 2 Semester 2 2026
Unique number:
Due date: 8 September 2026


QUESTION 1

QUESTION 1.1

Break point of debt = R160 .40 = R400 000

Break point of equity = R425 .60 = R708 333

Range R0 – R400 000

Cost of long-term debt (YTM)

Calculator input Value

FV R1 000

PV R930

PMT R80

N 10

I/YR 9.10%

, QUESTION 1

QUESTION 1.1

Break point of debt = R160 .40 = R400 000

Break point of equity = R425 .60 = R708 333

Range R0 – R400 000

Cost of long-term debt (YTM)

Calculator input Value

FV R1 000

PV R930

PMT R80

N 10

I/YR 9.10%

Net proceeds = R1 000(1 − 0.05) − R20 = R930

After-tax cost of debt = 9.10% × (1 − 0.30) = 6.37%

Cost of retained earnings = [R10(1 + 0.03) / R90] + 0.03 = 14.44%

WACC = (6.37% × 0.40) + (14.44% × 0.60) = 11.21%




Range R400 001 – R708 333

After-tax cost of additional debt = 10.00%

Cost of retained earnings = 14.44%

WACC = (10.00% × 0.40) + (14.44% × 0.60) = 12.66%
Connected book
image
Jan Williams, Sue Haka, Mark Bettner, Joseph Carcello Financial & Managerial Accounting
Publisher: 2009 ISBN: 9780073526997 Edition: Unknown

Document information

Uploaded on
March 17, 2026
File latest updated on
September 8, 2026
Number of pages
8
Written in
2026/2027
Type
Exam (elaborations)
Contains
Questions & answers
Report Copyright Violation
R75,00
Wrong document? Swap it for free Within 14 days of purchase and before downloading, you can choose a different document. You can simply spend the amount again.
Written by students who passed
Immediately available after payment
Read online or as PDF
Seller avatar
Reputation scores are based on the amount of documents a seller has sold for a fee and the reviews they have received for those documents. There are three levels: Bronze, Silver and Gold. The better the reputation, the more your can rely on the quality of the sellers work.
EduPal
4,2
(14446)
Sold
154637
Followers
36028
Items
5223
Last sold
2 hours ago

Reviews from verified buyers

Reviewer avatar
sindanebg 34 reviews
3 weeks ago
Reviewer avatar
ddhlikilili 62 reviews
6 months ago

Browse related subjects

Subjects

More courses for University of South Africa (Unisa) >

Why students choose Stuvia

Created by fellow students, verified by reviews

Quality you can trust: written by students who passed their exams and reviewed by others who've used these notes.

Didn't get what you expected? Choose another document

No worries! You can immediately select a different document that better matches what you need.

Pay how you prefer, start learning right away

No subscription, no commitments. Pay the way you're used to via credit card or EFT and download your PDF document instantly.

Student with book image

“Bought, downloaded, and aced it. It really can be that simple.”

Alisha Student

Working on your references?

Create accurate citations in APA, MLA and Harvard with our free citation generator.

Learn more Create citation
Working on your references?

Frequently asked questions