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FINANCIAL MANAGEMENT (FIN2601) ASSIGNEMNT 1 WITH QUESTIONS AND ANSWERS , PASS DISTINCTION R50,00
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  3. University Of South Africa (Unisa)
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  5. Financial Management (FIN2601)

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FINANCIAL MANAGEMENT (FIN2601) ASSIGNEMNT 1 WITH QUESTIONS AND ANSWERS , PASS DISTINCTION
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**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...

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  • August 24, 2024
  • 6
  • 2024/2025
  • Exam (elaborations)
  • Questions & answers

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FIN2601 Assignment 1

By Elite Tutorials +2781320377 /+27602196169

Question 1

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

Elite Tutorials +2781320377 /+27602196169

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