Summary FIN2603 Assignment 02 Semester 01 2024 ,

9/16/23, 4:54 PM Assessment 2: Attempt review




UNISA  2023  FIN2603-23-S2  Welcome Message  Assessment 2

QUIZ




Started on Saturday, 16 September 2023, 3:54 PM
State Finished
Completed on Saturday, 16 September 2023, 4:14 PM
Time taken 20 mins 2 secs


Question 1
Complete

Marked out of 1.00




A company increasing its credit terms for customers from 2/15 net 60 to 2/20
net 90 will likely experience ...


a. a decrease in the average collection period.
b. higher net income.
c. an increase in the average collection period.
d. an increase of cash in hand.




Question 2
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A company has financed 45% of its assets through a 11% after-tax cost of debt
loan. The remainder of its assets are financed through equity. The firm’s required
return on equity is 16%. Calculate the company's weighted average cost of
capital (WACC)?


a. 28.50%
b. 11.25%
c. 43.56%
d. 13.75%




Question 3

Complete

Marked out of 1.00




If Gerard invests R8 000 at the beginning of each year at an interest rate of 8%
over a six-year period, the future value of the investment would be ...


a. R81 000.00
b. R58 687.43
c. R60 000.00
d. R63 382.42



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, 9/16/23, 4:54 PM Assessment 2: Attempt review

Question 4
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What amount must be invested annually (at the beginning of each year) for 5
successive years at 8% p.a. compounded interest in order to yield R500 000?


a. R89 383.21
b. R92 000.44
c. R78 915.03
d. R82 047.05




Question 5
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The financial manager is evaluating a proposal for a new project with the
following cash flows: Year Net cash flows 0 -R 1 000 000 1 R 550 000 2 R
350 000 3 R 90 000The payback period is ...


a. between one and two years.
b. three years.
c. two years.
d. more than three years.




Question 6
Complete

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Characteristic of the industry include ...


a. Cyclical variations
b. All of the above
c. Competitive forces
d. Seasonal variations




Question 7
Complete

Marked out of 1.00




A company has a cash conversion cycle of 50 days. Annual outlays are R10
million and the cost of negotiated financing is 9%. Calculate its annual savings if
the company reduces its average age of inventory by 15 days. Assume 360 days
per year.


a. R37 500
b. R52 500
c. R17 778
d. R15 679




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