MAC2602 ASSIGNMENT 4 QUIZ SEMESTER 1 2023

MAC2602
Assignment 4
(ANSWERS)
Semester 1 2023

, SEMESTER 1 2023




MAC2602
ASSIGNMENT 4
SEMESTER 1 MAY 2023

, Started on Wednesday, 4 May 2023, 11:15 AM
State Finished
Completed on Wednesday, 4 May 2023,12:07 AM
Time taken 51 mins 17 secs
Marks 46.00/50.00
Grade 88.00 out of 100.00


Question 1
Correct
Mark 3.00 out of3.00




The current market price ofa share is R50,00 and the next expected dividend per share is R2,00. It is expected that the earnings and dividends will show a
growth of 10% per annum


REQUIRED:
Determine the cost of an ordinary share by using the constant growth model
(a) 10%
(b) 14%
(c) 1,25%
(d) 2,14%




Select one:
a. 10%
✓

C. 2,14%

d. 1,25%

, Question 2
Correct

Mark 3.00 out of 3.00




Portia would like to invest R2 000 at an annual compound interest rate of 12%.
REQUIRED:
Determine the future value of her investment after three (3) years. [Set your calculator at four decimal places. Round your final answer to the
nearest rand. Slight rounding differences may occur - choose the alternative that is closest to your answer.]
(a) R3 200
(b) R3 450
(c) R2 810
(d) R3 147




Select one:
✓
a. R2 810

b. R3 450

C. R3 200

d. R3 147




Question 3

Correct
Mark 3.00 out of3.00




The following information about No-Waste Limited is available:
The 1mrket interest rate of similar debentures is 18% (pre-tax)
Debentures mature in 10 years' time and the coupon rate thereon is 14%
Tax rate is 28%
REQUIRED:
Calculate the After tax cost of debt ofN o-Waste Limited. [Round your final answer to two decimal places.]
(a) 10,08%
(b) 14,00%
(c) 12,96%
(d) 12,43%




Select one:
a. 10,08%

b. 14,00%
✓