BUS3026W_2009+Tutorial4

BUS3026W_2009+Tutorial4 - School of Management Studies...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
School of Management Studies BUS3026W Finance II 2009 Tutorial Due: Week beginning 16 March ______________________________________________________________ Please show all your calculations. 2 Marks will be subtracted for every question not properly attempted. Question 1. You are working through the financial statements of the reputable financial services firm of Crookes and Swindell. The reported net assets (ordinary equity) is R15,5 million, and there are 2.25 million shares in issue which are currently trading at R 3.15 per share. Intangible assets are R2.5 million. The following entries need to be adjusted for, courtesy of some fictitious accounting by Mr Swindell, the Financial Director: The company has used an unrealistically high return on its pension-related assets. A more reasonable return will lead to an adjustment of R1.4 million to the pension liability. The discount rate used to value the pension liability is your opinion too high. Using a more realistic discount rate changes the pension liability by R0.8 million.
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 06/01/2011 for the course FIN 3026W taught by Professor Drtoerien during the Summer '09 term at University of Cape Town.

Page1 / 3

BUS3026W_2009+Tutorial4 - School of Management Studies...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online