Exam (elaborations)
MAC3761 Assignment 1 of 2021
- Institution
- University Of South Africa (Unisa)
Detailed memo with formulaes and calculation. Guranteed distinction
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MAC3761 ASSIGNMENT 1 OF 20211. 3
2. 4
3. 2
4. 2
5. 1
6. 1
R
𝟕𝟑 𝟓𝟎𝟎 ∗ 𝟐𝟎
Total purchase & installation cost ( ) 28 000 000
𝟎.𝟎𝟓𝟐𝟓
(4 500 000)
Available cash & cash equivalents
Financed by existing long - term funding 23 500 000
7. 4
R
Equity 79 200 000
Ordinary Share Capital 73 500 000
Retained Earnings 5 700 000
Long – term debt 52 800 000
8.5% Preference Share Capital 7 800 000
Long – term loan 20 000 000
7.5% Debentures (500 000 ∗ 50) 25 000 000
Total long – term funding instruments 132 000 000
Proportion of long – term debt = 𝑳𝒐𝒏𝒈−𝒕𝒆𝒓𝒎 𝒅𝒆𝒃𝒕
∗ 𝟏𝟎𝟎
𝑻𝒐𝒕𝒂𝒍 𝒍𝒐𝒏𝒈−𝒕𝒆𝒓𝒎 𝒇𝒖𝒏𝒅𝒊𝒏𝒈
52 800 000
= ∗ 100
132 000 000
= 𝟒𝟎%
For academic needs contact: 065 160 9781/info@unitutorials.co.za
, Amount of long – term debt = (40% ∗ 25 587 000)
= 𝑹𝟏𝟎 𝟐𝟑𝟒 𝟖𝟎𝟎
8. 2
R
Total dividends 12 663 000
Preference dividend (7 800 000 ∗ 8.5%) (663 000)
Ordinary dividend 12 000 000
𝑶𝒓𝒅𝒊𝒏𝒂𝒓𝒚 𝒅𝒊𝒗𝒊𝒅𝒆𝒏𝒅
Market Value =
𝑫𝒊𝒗𝒊𝒅𝒆𝒏𝒅 𝒀𝒊𝒆𝒍𝒅
12 000 000
=
0.10
= 𝑹𝟏𝟐𝟎 𝟎𝟎𝟎 𝟎𝟎𝟎
No. of shares issued = 𝑩𝒐𝒐𝒌 𝒗𝒂𝒍𝒖𝒆
𝑨𝒗𝒆𝒓𝒂𝒈𝒆 𝑯𝒊𝒔𝒕𝒐𝒓𝒊𝒄𝒂𝒍 𝒄𝒐𝒔𝒕 𝒑𝒆𝒓 𝒔𝒉𝒂𝒓𝒆
73 500 000
=
4.90
= 𝟏𝟓 𝟎𝟎𝟎 𝟎𝟎𝟎 𝒔𝒉𝒂𝒓𝒆𝒔
Market price per share = 𝑻𝒐𝒕𝒂𝒍 𝒎𝒂𝒓𝒌𝒆𝒕 𝒗𝒂𝒍𝒖𝒆
𝑻𝒐𝒕𝒂𝒍 𝒏𝒖𝒎𝒃𝒆𝒓 𝒐𝒇 𝒔𝒉𝒂𝒓𝒆𝒔 𝒊𝒔𝒔𝒖𝒆𝒅
120 000 000
=
15 000 000
= 𝑹𝟖 𝒑𝒆𝒓 𝒔𝒉𝒂𝒓𝒆
Number of ordinary shares to be issued = 𝑻𝒐𝒕𝒂𝒍 𝒇𝒖𝒏𝒅𝒊𝒏𝒈 𝒓𝒆𝒒𝒖𝒊𝒓𝒆𝒅
𝑴𝒂𝒓𝒌𝒆𝒕 𝒑𝒓𝒊𝒄𝒆 𝒑𝒆𝒓 𝒔𝒉𝒂𝒓𝒆
15 096 000
=
8
= 𝟏 𝟖𝟖𝟕 𝟎𝟎𝟎 𝒔𝒉𝒂𝒓𝒆𝒔
For academic needs contact: 065 160 9781/info@unitutorials.co.za
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