FIN2603 ASSIGNMENT 2

UNISA  2024  FIN2603-24-S2  Assessment 2

QUIZ




Started on Friday, 30 August 2024, 6:52 PM
State Finished
Completed on Friday, 30 August 2024, 8:04 PM
Time taken 1 hour 12 mins


Question 1 A company has financed 40% of its assets through a 12% after-tax cost of debt loan. The remainder
Complete of its assets are financed through equity. The firm’s required return on equity is 14%.
Marked out of Calculate the company's weighted average cost of capital (WACC)?
1.00

a. 13.75%
b. 13.20%
c. 13.56%
d. 15.50%




Question 2 A construction company consumes 1700 litres of petrol per day for its current mining operations. Mr
Complete Burton, the financial analyst, has estimated that the mine will increase its current operations, and
Marked out of therefore, petrol consumption will increase by 5% for the 2024 financial year. It takes three days from
1.00 placing the order until the petrol is delivered. Calculate the reorder point for the 2024 financial year.


a. 5355 litres
b. 6400 litres
c. 7040 litres
d. 8340 litres




Question 3 Calculate the future value (FV) of R15 000 invested for six years at an interest rate of 8%,
Complete compounded semi-annually.
Marked out of
1.00
a. R14 106
b. R26 734
c. R14 026
d. R24 015




Question 4 A company increasing its credit terms for customers from 2/15 net 60 to 2/18 net 75 will likely
Complete experience ...
Marked out of
1.00
a. a decrease in the average collection period.
b. an increase of cash in hand.
c. an increase in the average collection period.
d. higher net income.