MAC2602
ASSIGNMENT 4
SECOND SEMESTER 2023
BY: MTHOMBENI: 0767297208
www.teachingmachine.co.za
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,QUESTION 1
hich ONE of the following ratios measures an organisation’s ability to make its dividend payments to the
shareholders.
(a) Dividend yield.
(b) Price/earnings ratio.
(c) Dividend cover ratio.
(d) Dividend pay-out ratio.
Select one:
a.
Price/earnings ratio.
b.
Dividend pay-out ratio.
c.
Dividend cover ratio.
d.
Dividend yield.
Question 2
Correct
Mark 2.00 out of 2.00
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Risk managers are usually appointed by the board of directors to take the lead on developing best practices for
managing risks across the organisation. From the following list of functions, select all functions that should be
undertaken by the risk manager.
(1) Setting policy and strategy for risk management.
(2) Establishing internal risk policy and structures for business units.
(3) Determining and defining the company’s risk appetite.
(4) Approve and monitor the annual risk management plan.
(5) Building a risk-aware culture within the organisation that includes appropriate training.
a) Statements (1), (2) and (3)
b) Statements (1), (2) and (4)
c) Statements (1), (2), and (5)
d) Statements (1), (3) and (4)
Select one:
a.
Statements (1), (3) and (4)
b.
Statements (1), (2), and (5)
c.
Statements (1), (2) and (3)
d.
Statements (1), (2) and (4)
Question 3
Correct
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What term is used to describe the specific currency risk when an organisation is exposed to the effect of short-
term currency changes in settlement values?
(a) Political risk.
(b) Economic risk.
(c) Translation risk.
(d) Transaction risk.
Select one:
a.
Translation risk.
b.
Transaction risk.
c.
Political risk.
d.
Economic risk.
Question 4
Correct
Mark 2.00 out of 2.00
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Question text
Measuring annual profitability based only on accounting and financial indicators have certain drawbacks. Which of
the following statements are examples of these drawbacks.
(1) Encourages short-term returns at the expense of the development of the business.
(2) It is a long-term measure.
(3) Profit earned is not an indicator of cash flows generated.
(4) Risk is ignored.
(5) It can be manipulated using creative accounting.
(a) Statements (1), (2), (3), (4) and (5)
(b) Statement (1), (2), (3) and (5)
(c) Statements (1), (3), (4) and (5)
(d) Statement (2), (3), (4) and (5)
Select one:
a.
Statements (1), (2), (3), (4) and (5)
b.
Statement (1), (2), (3) and (5)
c.
Statements (1), (3), (4) and (5)
d.
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, Statement (2), (3), (4) and (5)
Question 5
Correct
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Select the option that is TRUE regarding the dividend growth model.
(a) The dividend growth model is not based on the return that the investor is prepared to accept on the investment.
(b) The expected growth rate in dividends is predicted by the shareholders.
(c) The expected future dividends are uncertain and therefore also the expected growth rate in dividends and it is not
realistic to assume that the growth rate will stay constant.
(d) The dividend growth model is based on the principle that investors in ordinary shares should be rewarded for the
risk they bear.
Select one:
a.
The expected future dividends are uncertain and therefore also the expected growth rate in dividends and it is
not realistic to assume that the growth rate will stay constant.
b.
The expected growth rate in dividends is predicted by the shareholders.
c.
The dividend growth model is not based on the return that the investor is prepared to accept on the investment.
d.
The dividend growth model is based on the principle that investors in ordinary shares should be rewarded for the
risk they bear.
Question 6
Incorrect
Mark 0.00 out of 2.00
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Question text
A reputable manufacturing label produces a snack that is sold in countries across the world. The snack carries a
warning on the packet stating that the snack contains nuts. This product can therefore cause an allergic reaction in
people that are allergic to nuts. Anyone who is considering eating this snack are therefore made aware of the
ingredients and the side effects. What kind of risk response is the manufacturer of this snack using? Select ONE
of the following options:
(a) Avoidance
(b) Retention
(c) Reduction
(d) Transfer
Select one:
a.
b.
Transfer
c.
d.
Reduction
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ASSIGNMENT 4
SECOND SEMESTER 2023
BY: MTHOMBENI: 0767297208
www.teachingmachine.co.za
Downloaded by: TheTeachingMachine | Want to earn Distribution of this document is
illegal R13,625 per year?
,QUESTION 1
hich ONE of the following ratios measures an organisation’s ability to make its dividend payments to the
shareholders.
(a) Dividend yield.
(b) Price/earnings ratio.
(c) Dividend cover ratio.
(d) Dividend pay-out ratio.
Select one:
a.
Price/earnings ratio.
b.
Dividend pay-out ratio.
c.
Dividend cover ratio.
d.
Dividend yield.
Question 2
Correct
Mark 2.00 out of 2.00
Flag question
Question text
Risk managers are usually appointed by the board of directors to take the lead on developing best practices for
managing risks across the organisation. From the following list of functions, select all functions that should be
undertaken by the risk manager.
(1) Setting policy and strategy for risk management.
(2) Establishing internal risk policy and structures for business units.
(3) Determining and defining the company’s risk appetite.
(4) Approve and monitor the annual risk management plan.
(5) Building a risk-aware culture within the organisation that includes appropriate training.
a) Statements (1), (2) and (3)
b) Statements (1), (2) and (4)
c) Statements (1), (2), and (5)
d) Statements (1), (3) and (4)
Select one:
a.
Statements (1), (3) and (4)
b.
Statements (1), (2), and (5)
c.
Statements (1), (2) and (3)
d.
Statements (1), (2) and (4)
Question 3
Correct
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Question text
What term is used to describe the specific currency risk when an organisation is exposed to the effect of short-
term currency changes in settlement values?
(a) Political risk.
(b) Economic risk.
(c) Translation risk.
(d) Transaction risk.
Select one:
a.
Translation risk.
b.
Transaction risk.
c.
Political risk.
d.
Economic risk.
Question 4
Correct
Mark 2.00 out of 2.00
Flag question
Question text
Measuring annual profitability based only on accounting and financial indicators have certain drawbacks. Which of
the following statements are examples of these drawbacks.
(1) Encourages short-term returns at the expense of the development of the business.
(2) It is a long-term measure.
(3) Profit earned is not an indicator of cash flows generated.
(4) Risk is ignored.
(5) It can be manipulated using creative accounting.
(a) Statements (1), (2), (3), (4) and (5)
(b) Statement (1), (2), (3) and (5)
(c) Statements (1), (3), (4) and (5)
(d) Statement (2), (3), (4) and (5)
Select one:
a.
Statements (1), (2), (3), (4) and (5)
b.
Statement (1), (2), (3) and (5)
c.
Statements (1), (3), (4) and (5)
d.
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, Statement (2), (3), (4) and (5)
Question 5
Correct
Mark 2.00 out of 2.00
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Question text
Select the option that is TRUE regarding the dividend growth model.
(a) The dividend growth model is not based on the return that the investor is prepared to accept on the investment.
(b) The expected growth rate in dividends is predicted by the shareholders.
(c) The expected future dividends are uncertain and therefore also the expected growth rate in dividends and it is not
realistic to assume that the growth rate will stay constant.
(d) The dividend growth model is based on the principle that investors in ordinary shares should be rewarded for the
risk they bear.
Select one:
a.
The expected future dividends are uncertain and therefore also the expected growth rate in dividends and it is
not realistic to assume that the growth rate will stay constant.
b.
The expected growth rate in dividends is predicted by the shareholders.
c.
The dividend growth model is not based on the return that the investor is prepared to accept on the investment.
d.
The dividend growth model is based on the principle that investors in ordinary shares should be rewarded for the
risk they bear.
Question 6
Incorrect
Mark 0.00 out of 2.00
Flag question
Question text
A reputable manufacturing label produces a snack that is sold in countries across the world. The snack carries a
warning on the packet stating that the snack contains nuts. This product can therefore cause an allergic reaction in
people that are allergic to nuts. Anyone who is considering eating this snack are therefore made aware of the
ingredients and the side effects. What kind of risk response is the manufacturer of this snack using? Select ONE
of the following options:
(a) Avoidance
(b) Retention
(c) Reduction
(d) Transfer
Select one:
a.
b.
Transfer
c.
d.
Reduction
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illegal R13,625 per year?
