RSK4804
EXAM PACK
FOR ASSISTANCE WITH THIS MODULE +27 67 171 1739
, lOMoARcPSD|62123117
CONFIDENTIAL
UNIVERSITY EXAMINATIONS
January/February 2025
RSK4804
CREDIT RISK MANAGEMENT
100 marks
Duration: 3 hours
EXAMINERS:
First: Dr S Molefe
Second: Mr M Nxumalo
Second: Prof J Chisasa
External: Dr H le Roux
This assessment consists of 25 pages.
Instructions:
1. Any battery-operated pocket calculator may be used. You may use a Sharp EL733-A, Sharp
EL738, HP12C, or HP10BII financial calculator.
2. No rough work will be marked.
3. Use sentence case in Arial 10 pt.
4. This is a closed-book examination.
Downloaded by Pied Zulu ()
, lOMoARcPSD|62123117
RSK4804
Date: 30 January 2025
INSTRUCTIONS ON THE DAY OF ASSESSMENT:
Ensure you are connected to the internet in order to log into the Invigilator App and YOUR EXAM QR CODE & EXAM
scan this QR code. ACCESS CODE
If you encounter difficulty in scanning the QR code, you can alternatively enter the
Exam Access Code below the QR code to start the invigilation.
If you finish your assessment before the app timer has run out you need to press the
‘Finish Assessment’ button and follow instructions before you exit or minimise the app.
Scan the QR code at the start time of the assessment, unless otherwise specified by
your institution, note that you can only scan this QR code once.
The Invigilator App may request you to take photos of your examination script after the
assessment. Please follow the instructions on the app and take note that your
Exam Access Code: 4a037ceb
academic institution may still require you to submit your script on the relevant portal.
The QR code is only scannable for a limited time and it should therefore be
scanned as soon as possible after the assessment commencement time.
Keep the Invigilator App open on your smartphone for the full duration of the assessment. You are not allowed to minimise or leave the
app during your assessment.
You must adhere to the assessment time limit communicated to you by your institution. The timer displayed in the Invigilator may vary
depending on the start time of invigilation.
FURTHER GUIDANCE
If you only have one device you may access your assessment in the application by pressing the ‘Access Browser’ button in the top right
corner of your app.
Once the QR code is scanned, ensure your media volume is turned up and place your smartphone next to you.
The Invigilator App will notify you with a notification beep when you are required to action a photo request, which you should then
perform as soon as possible.
We recommend that you keep your smartphone on charge for the duration of the assessment.
Ensure you are connected to the internet when commencing invigilation. You also need to be connected to the internet at the end of the
assessment in order to upload the app data.
If your assessment has multiple online sections, tests or attempts, you should NOT finish the invigilation until your entire assessment
has been completed.
Should you encounter any technical difficulty, please WhatsApp The Invigilator Helpdesk on +27 (0)73 505 8273
Downloaded by Pied Zulu ()
, lOMoARcPSD|62123117
CONFIDENTIAL
Page 2 of 25 RSK4804
January/February 2025
QUESTION 1 [10]
When planning to acquire, keep, or sell shares in a business, the financial health thereof is of
utmost importance. According to Prof Edward Altman, the Z-score can predict with 95%
accuracy the risk of a business going bankrupt within a year, and with 72% accuracy within two
years. Banks also use similar information to make lending decisions. As a credit analyst for the
Bank of Tzaneen, use the information below to calculate the bankruptcy risk of Mashudu Brick
Manufacturers, using Altman’s Z-score, and then give your recommendation.
The following ratios are completed for Mashudu Brick Manufacturers for FY 2021:
o working capital to total assets ratio = 21% – X1
o retained earnings to total assets ratio = 28% – X2
o profit before interest and tax to total assets = 31% – X3
o market value of equity to book value of debt = 130% – X4
o sales to total assets = 245% – X5
[TURN OVER]
Downloaded by Pied Zulu ()
EXAM PACK
FOR ASSISTANCE WITH THIS MODULE +27 67 171 1739
, lOMoARcPSD|62123117
CONFIDENTIAL
UNIVERSITY EXAMINATIONS
January/February 2025
RSK4804
CREDIT RISK MANAGEMENT
100 marks
Duration: 3 hours
EXAMINERS:
First: Dr S Molefe
Second: Mr M Nxumalo
Second: Prof J Chisasa
External: Dr H le Roux
This assessment consists of 25 pages.
Instructions:
1. Any battery-operated pocket calculator may be used. You may use a Sharp EL733-A, Sharp
EL738, HP12C, or HP10BII financial calculator.
2. No rough work will be marked.
3. Use sentence case in Arial 10 pt.
4. This is a closed-book examination.
Downloaded by Pied Zulu ()
, lOMoARcPSD|62123117
RSK4804
Date: 30 January 2025
INSTRUCTIONS ON THE DAY OF ASSESSMENT:
Ensure you are connected to the internet in order to log into the Invigilator App and YOUR EXAM QR CODE & EXAM
scan this QR code. ACCESS CODE
If you encounter difficulty in scanning the QR code, you can alternatively enter the
Exam Access Code below the QR code to start the invigilation.
If you finish your assessment before the app timer has run out you need to press the
‘Finish Assessment’ button and follow instructions before you exit or minimise the app.
Scan the QR code at the start time of the assessment, unless otherwise specified by
your institution, note that you can only scan this QR code once.
The Invigilator App may request you to take photos of your examination script after the
assessment. Please follow the instructions on the app and take note that your
Exam Access Code: 4a037ceb
academic institution may still require you to submit your script on the relevant portal.
The QR code is only scannable for a limited time and it should therefore be
scanned as soon as possible after the assessment commencement time.
Keep the Invigilator App open on your smartphone for the full duration of the assessment. You are not allowed to minimise or leave the
app during your assessment.
You must adhere to the assessment time limit communicated to you by your institution. The timer displayed in the Invigilator may vary
depending on the start time of invigilation.
FURTHER GUIDANCE
If you only have one device you may access your assessment in the application by pressing the ‘Access Browser’ button in the top right
corner of your app.
Once the QR code is scanned, ensure your media volume is turned up and place your smartphone next to you.
The Invigilator App will notify you with a notification beep when you are required to action a photo request, which you should then
perform as soon as possible.
We recommend that you keep your smartphone on charge for the duration of the assessment.
Ensure you are connected to the internet when commencing invigilation. You also need to be connected to the internet at the end of the
assessment in order to upload the app data.
If your assessment has multiple online sections, tests or attempts, you should NOT finish the invigilation until your entire assessment
has been completed.
Should you encounter any technical difficulty, please WhatsApp The Invigilator Helpdesk on +27 (0)73 505 8273
Downloaded by Pied Zulu ()
, lOMoARcPSD|62123117
CONFIDENTIAL
Page 2 of 25 RSK4804
January/February 2025
QUESTION 1 [10]
When planning to acquire, keep, or sell shares in a business, the financial health thereof is of
utmost importance. According to Prof Edward Altman, the Z-score can predict with 95%
accuracy the risk of a business going bankrupt within a year, and with 72% accuracy within two
years. Banks also use similar information to make lending decisions. As a credit analyst for the
Bank of Tzaneen, use the information below to calculate the bankruptcy risk of Mashudu Brick
Manufacturers, using Altman’s Z-score, and then give your recommendation.
The following ratios are completed for Mashudu Brick Manufacturers for FY 2021:
o working capital to total assets ratio = 21% – X1
o retained earnings to total assets ratio = 28% – X2
o profit before interest and tax to total assets = 31% – X3
o market value of equity to book value of debt = 130% – X4
o sales to total assets = 245% – X5
[TURN OVER]
Downloaded by Pied Zulu ()
