FINANCIAL MANAGEMENT (FIN2601) ASSIGNEMNT 1 WITH QUESTIONS AND ANSWERS , PASS DISTINCTION
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Course
Financial Management (FIN2601)
Institution
University Of South Africa (Unisa)
**Question 4**
Kiddies County clothing company pays 6% interest on its outstanding debt, which amounts to R720 000. The company’s sales are R, its tax rate is 40% and its net profit margin is 10.7%. What is the company's time interest earned ratio?
Complete
Mark 1.00 out of 1.00
**Q...
Which of the following statements are correct if a company focuses on profits as a financial goal?
Correct Answer:
a, b, and c
Question 2
Which one of the following best describes a capital market?
Correct Answer:
A financial relationship created by institutions and arrangements that allow suppliers and demanders of
long-term funds to make transactions.
Question 3
Which of the following statement is least correct when analyzing ratios?
Correct Answer:
Liquidity ratios measure the company's ability to meet its financial obligation in the long run.
Question 4
Kiddies County clothing company pays 6% interest on its outstanding debt, which amounts to R720 000.
The company’s sales are R2 478 000, its tax rate is 40% and its net profit margin is 10.7%. What is the
company's time interest earned ratio?
Correct Answer
5.73 times
Question 5
Evolve Health, a pharmaceutical company, has R87 960 in EBIT, R62 500 in interest expense, and R10
000 in preference share dividend with a tax rate of 30%. The company had 1 000 shares issued and
outstanding. What is the company’s market-to-book ratio?
Correct Answer:
R1.23
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