Started on Tuesday, 6 August 2024, 10:59 AM
State Finished
Completed on Tuesday, 6 August 2024, 12:06 PM
Time taken 1 hour 6 mins
Marks 17.00/20.00
Grade 85.00 out of 100.00
Question 1
Which of the following statements are correct if a company focuses on profits as
Complete financial goal?
Mark 1.00 out
of 1.00 a) Risk is ignored.
Flag b) The share price is ignored.
question
c) The size of the investment required to generate the profit is ignored.
1. a and b
2. c and a
3.
b and c
4.
a, b and c
Question 2
Which one of the following best describes a capital market?
Complete
Mark 1.00 out
of 1.00
Flag 1. A financial relationship created by institutions and arrangements that allow
question
suppliers and demanders of short-term funds to make transactions.
2.
An intangible market for the purchase and sale of securities not listed on
organised exchanges.
, 3. A market that allocates funds to their most productive uses as a result of
competition among wealth-maximising investors.
4.
A financial relationship created by institutions and arrangements that allow
suppliers and demanders of long-term funds to make transactions.
Question 3
Kiddies County clothing company pays 6% interest on its outstanding debt, which
Complete
amounts to R720 000. The company’s sales are R2 478 000, its tax rate is 40% and
Mark 0.00 out its net profit margin is 10,7%. What is the company time interest earned ratio?
of 1.00
Flag
question
1. 1,74 times
2.
5,73 times
3.
6,74 times
4. 7,80 times
Question 4
Evolve Health, a pharmaceutical company, the statement of comprehensive income
Complete shows R87 960 in earnings before tax (EBIT), interest expense of R62 500 and R10
Mark 1.00 out 000 in preference share dividend with a tax rate of 30%. The company had 1 000
of 1.00 number of shares issued and 1 000 number of shares outstanding. If the
Flag price/earnings ratio (P/E) is reported as 5,30 and ROE is 23,3%. What is the
question company’s market to book ratio?
1.
R0,81
2.
R1,23
3. R2,33
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