MBA6040 MANAGERIAL FINANCE QUIZ 1 WITH SOLUTIONS; graded A+ latest model examinations on managerial finance with 100% correct solutions.
MBA6040 MANAGERIAL FINANCE FINAL EXAM REVIEW QUESTIONS; best final exam prep questions on managerial finance; well equipped with the best solutions and explanations
MBA6040 MANAGERIAL FINANCE EXAM QUESTIONS WITH COMPLETE SOLUTIONS; latest model exam prep questions with 100% complete solutions.
All for this textbook (49)
Written for
University of South Africa
Working Capital Management
All documents for this subject (51)
Seller
Follow
MasterVincent
Reviews received
Content preview
,FIN3702 Assignment 1 (COMPLETE ANSWERS) Semester
2 2024 (355803)- DUE 6 September 2024 ; 100% TRUSTED
Complete, trusted solutions and explanations.
Question 1 Not yet answered Marked out of 1.00 Question 2 Not
yet answered Marked out of 1.00 QUIZ Which of the following
is appropriate collateral for a loan secured under a fl oating
inventory lien? 1. Cars 2. Paper clips 3. Drill presses 4. File
cabinets A fi rm has issued R2 million worth of commercial
paper that has a 90-day maturity and sells for R1 950 000. The
approximateannual interest rate on the issue of commercial
paper is … (assume 365 days in a year). 1. 5% 2. 11% 3. 21% 4.
23% Question 3 Not yet answered Marked out of 1.00 Question
4 Not yet answered Marked out of 1.00 Question 5 Not yet
answered Marked out of 1.00 Lenders recognize that by having
an interest in collateral they can reduce losses if the borrowing fi
rm defaults, … 1. and the presence of collateral reduces the risk
of default. 2. but the presence of collateral has no impact on the
risk of default. 3. therefore, lenders prefer to lend to customers
from whom they are able to require collateral. 4. therefore,
lenders will impose a higher interest rate on unsecured short-
term borrowing. A Taijikwan Mining fi rm borrowed R100,000
for one year under a revolving credit agreement that authorized
and guaranteedthe fi rm access to R200,000. The revolving
credit agreement had a stated interest rate of 7.5% and charged
the fi rm a 1%commitment fee on the unused portion of the
agreement. Based on this information, the effective annual
interest rate on theloan was … 1. 7.5% 2. 8.0% 3. 8.5% 4. 9.0%
The major type of loan made by banks to businesses is the … 1.
, fi xed-asset-based loan. 2. short-term secured loan. 3. capital
improvement loan. 4. short-term self-liquidating loan. Question
6 Not yet answered Marked out of 1.00 Question 7 Not yet
answered Marked out of 1.00 Question 8 Not yet answered
Marked out of 1.00 Eastwood Grocers’ budgeted monthly sales
are R3 000. 40% of its customers pay in the fi rst month and
take the 2% discount.The remaining 60% pay in the month
following the sale and don't receive a discount. The company’s
bad debts are negligible.Purchases for next month's sales are
constant each month at R1 500. Other payments for wages, rent,
and taxes are constantat R700 per month. What is the fi rm’s
average cash gain/loss during a typical month? 1. R728. 2.
R740. 3. R776. 4. R800. Which of the following statements
concerning the cash budget is true? 1. Cash budgets do not
include cash infl ows from long-term sources such as bond
issues 2. Cash budgets do not include fi nancial expenses such as
interest and dividend payments 3. Depreciation expense is not
explicitly included but depreciation effects are implicitly
included in estimated taxpayments 4. Statements 1 and 3 are
correct D iamond Trust Bank Ltd has offered a manufacturing
company the following alternatives in response to the R275 000
one-year loan application made to the bank. • alternative 1: 13%
discount interest, with an 8% compensating balance. •
alternative 2: 16% simple interest with interest paid monthly.
What will be the effective annual rate if this company chooses to
take the cheaper alternative? 1. 13.63%. 2. 16.08% 3. 16.46% 4.
17.22%. Question 9 Not yet answered Marked out of 1.00
Question 10 Not yet answered Marked out of 1.00 Question 11
Not yet answered Marked out of 1.00 The information provided
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller MasterVincent. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $2.50. You're not tied to anything after your purchase.
