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FIN2601 Assessment 1 SEMESTER 2 2024 Maverick has been presented with two options by his parents. The rst option entails receiving annual gifts of R18 000, R22 000, R26 000, and R30 000 at the end of each of the next four years. The second option is a si

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FIN2601 Assessment 1 SEMESTER 2 2024 Maverick has been presented with two options by his parents. The rst option entails receiving annual gifts of R18 000, R22 000, R26 000, and R30 000 at the end of each of the next four years. The second option is a single lump sum payment available today. He is currently evaluating these two offers to determine which one to choose, taking into account a discount rate of 12,5%. What is the minimum lump sum amount he would accept today in order to select the lump sum offer? 1. R70 372,20 2. R71 643,34 3. R78 216,89 4. R79 168,72 Nadine is planning to retire at the age of 60 and anticipates living until she reaches the age of 85. On the day of her retirement, her retirement savings account holds R759 320. She is known for being nancially conservative and estimates that her investments will yield a 7% return during her retirement years. In order to exhaust her savings on the day of her passing, how much can she withdraw from her retirement savings each month? 1. R5 329,05 2. R5 335,59 3. R5 366,72 4. R5 609,92 Sofia's employer contributes R120 per week to her retirement plan. Assuming she continues working for her employer for another 30 years and using a discount rate of 7,5%, what is the present value of this employee bene t to her? 1. R 12 407,93 2. R 40 384,69 3. R 74 416,56 4. R645 212,27

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8/9/24, 11:56 AM Assessment 1: Attempt review




FIN2601-24-S2  Welcome Message  Assessment 1

QUIZ




Started on Friday, 9 August 2024, 11:51 AM
State Finished
Completed on Friday, 9 August 2024, 11:56 AM
Time taken 4 mins 34 secs
Marks 20.00/20.00
Grade 100.00 out of 100.00


Question 1
Complete

Mark 1.00 out of 1.00




Which of the following statements are correct if a company focuses on profits
as financial goal?

a) Risk is ignored.

b) The share price is ignored.
c) The size of the investment required to generate the profit is ignored.




1.
a and b



2.
c and a



3.
b and c



4.
a, b and c




https://mymodules.dtls.unisa.ac.za/mod/quiz/review.php?attempt=20728580&cmid=846382 1/11

, 8/9/24, 11:56 AM Assessment 1: Attempt review

Question 2

Complete

Mark 1.00 out of 1.00




Which one of the following best describes a capital market?




1. A financial relationship created by institutions and arrangements that

allow suppliers and demanders of short-term funds to make
transactions.



2. An intangible market for the purchase and sale of securities not listed

on organised exchanges.



3.
A market that allocates funds to their most productive uses as a result
of competition among wealth-maximising investors.



4. A financial relationship created by institutions and arrangements that
allow suppliers and demanders of long-term funds to make
transactions.




Question 3
Complete

Mark 1.00 out of 1.00




The Harddrive, the technology consulting company, given its earnings before
interest and tax (EBIT) is R20 000 000. The company’s time interest earned
(TIE) ratio is 8,0, its tax rate is 35%, and its total assets turnover ratio is 1,25
with a sales value of R800 000. What is the company’s return on assets (ROA)?




1. 5,63%



2. 14,21%



3. 17,77%



4. 22,32%




https://mymodules.dtls.unisa.ac.za/mod/quiz/review.php?attempt=20728580&cmid=846382 2/11

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