Instructions to students:
1. This examination paper consists of two sections.
SECTION A Multiple-choice questions
• Use the spaces provided to answer this section.
• Circle the correct multiple-choice answer on the answer sheet.
SECTION B Long questions
• Use the spaces provided to answer this section.
• Show all your calculations in the space provided.
2. Make sure that you have answered all the questions.
3. Please write legibly and clearly.
4. Do not use SMS language.
5. Use four decimal places in your calculations and round off your final answer to two decimal
places.
Honesty declaration:
Submit a declaration of honesty whereby you declare that the work submitted is your own. This declaration will
be the first page you see when starting the assessment. You will not be able to access the paper without
submitting this declaration.
I declare that the work I am submitting for assessment is my own work and that I have not worked in a group
nor have I consulted anybody in order to complete the assessment.
Invigilator App Instructions:
Take note that the Invigilator App instructions and the QR code for the module are on page 2.
Instruction on the platform and specific submission tool:
The examination will be conducted as a take-home examination based on an examination question paper.
The examination will be managed on the myUnisa platform.
To submit the examination:
1. Click on the myAdmin tab in the top navigation pane.
2. In the Assessments submenu, click on the Assessment Info tool in the drop-down list.
3. Locate the section for Unisa Summative Assessments at the bottom of the list.
4. Find the corresponding portfolio number for your module.
Click on the Submit link in the Action column.
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Page 2 of 21 INV3701
OCT/NOV 2020
The Invigilator App Instructions
▪ Please remember to keep your cell phone fully charged for the duration of the assessment.
▪ Please log into The Invigilator App if you have not done so yet. You need to be connected to the
internet in order to log in.
▪ Scan the QR code below once the examination starts. If you encounter difficulty with scanning of
the QR code, you can also enter the QR access code as indicated at the bottom of the QR code to
start the online invigilation.
▪ Once the QR code is scanned, avoid any disturbances by putting your phone on airplane mode. No
internet connection is needed during the assessment.
▪ Keep the Invigilator app open at all times on your cell phone during the assessment.
▪ You may place your cell phone next to you. Your cell phone does not need to face you however
should be close enough to hear the notifications from The Invigilator App.
▪ The Invigilator App will notify you when an action is required.
▪ In order to receive notifications do not put your cell phone on silent mode and ensure media volume
is turned up.
▪ When an action is required, a notification beep will be heard, and an instruction will be visible.
▪ Please take note that once the examination time is over, firstly focus on scanning and uploading
your script to your assessment platforms. Uploading your script is time sensitive.
▪ Once your script is uploaded on your assessment platform, you may switch on your data to start the
uploading process on The Invigilator app.
▪ Best wishes in the exam
QR Access Code for INV3701
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Page 3 of 21 INV3701
OCT/NOV 2020
SECTION A: MULTIPLE-CHOICE QUESTIONS (10 MARKS)
This section consists of five questions that are worth two marks each.
Circle the correct answer for each multiple-choice question (Questions 1 to 5)
1. Which one of the following statements is most likely correct regarding sustainable
growth?
1. A share split will increase the sustainable growth rate.
2. A decrease in the debt ratio will increase the sustainable growth rate.
3. A decrease in the quarterly dividends will increase the sustainable growth rate.
2. Which of the following statements regarding the P/E to growth (PEG) valuation approach
is the least accurate? The PEG valuation approach assumes that …
1. there are no risk differences among stocks.
2. there is a linear relationship between price to earnings P/E and growth.
3. stocks with higher PEGs are more attractive than stocks with lower PEGs.
3. Diani Limited has a net profit margin of 26% and a financial leverage of 1.25. The sales
of its products amount to R182 000 while its total assets amount to R260 000. The firm
has a dividend payout of 40%. Therefore, the sustainable growth rate of Diani Limited is
…
1. 9.10%.
2. 13.65%.
3. 17.54%.
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