FIN2601 ASSIGNMENT 2
FOR SEMESTER 1 2025
YEAR: 2025
,Question 1
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Which one of the following statements expresses the difference between the capital market and the
money market?
1.
The capital market involves long-term financial instruments whereas the money market involves
short-term financial instruments.
2.
The capital market refers to the short-term market whereas the money market refers to the
long-term market.
3.
The capital market refers to the treasury market whereas the money market refers to the short-term
market.
4.
The capital market refers to the preference share market whereas the money market refers to the
short-term market.
Question 2
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A typical company has many types of shareholders ranging from individuals who hold just a few
shares to large institutions that hold a considerable number of shares. How does a financial manager
ensure that the priorities and concerns of such a wide variety of shareholders are taken into account?
, 1.
The financial manager should seek to make investments that do not harm the interests of
shareholders.
2.
The financial manager should maximise the value of all shareholders’ investments.
3.
The financial manager should make the interests and concerns of large shareholders a priority so that
the needs of those who hold a controlling interest in the company are met.
4.
The decisions taken by the financial manager should be influenced solely by their benefits to the
company since, by maximising the benefits to the company, he/she will also maximise the benefits of
the company’s shareholders.
Question 3
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Ansel has been presented with two options by his parents. The first 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.
FOR SEMESTER 1 2025
YEAR: 2025
,Question 1
Not yet answered
Marked out of 1.00
Flag question
Question text
Which one of the following statements expresses the difference between the capital market and the
money market?
1.
The capital market involves long-term financial instruments whereas the money market involves
short-term financial instruments.
2.
The capital market refers to the short-term market whereas the money market refers to the
long-term market.
3.
The capital market refers to the treasury market whereas the money market refers to the short-term
market.
4.
The capital market refers to the preference share market whereas the money market refers to the
short-term market.
Question 2
Answer saved
Marked out of 1.00
Flag question
Question text
A typical company has many types of shareholders ranging from individuals who hold just a few
shares to large institutions that hold a considerable number of shares. How does a financial manager
ensure that the priorities and concerns of such a wide variety of shareholders are taken into account?
, 1.
The financial manager should seek to make investments that do not harm the interests of
shareholders.
2.
The financial manager should maximise the value of all shareholders’ investments.
3.
The financial manager should make the interests and concerns of large shareholders a priority so that
the needs of those who hold a controlling interest in the company are met.
4.
The decisions taken by the financial manager should be influenced solely by their benefits to the
company since, by maximising the benefits to the company, he/she will also maximise the benefits of
the company’s shareholders.
Question 3
Not yet answered
Marked out of 1.00
Flag question
Question text
Ansel has been presented with two options by his parents. The first 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.
