Assignment 02 soulutions_202_2011_1_e

Assignment 02 soulutions_202_2011_1_e - MNF2023/202/1/2011...

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MNF2023/202/1/2011 DEPARTMENT OF FINANCE AND RISK MANAGEMENT AND BANKING FINANCIAL MANAGEMENT (MNF2023) TUTORIAL LETTER 201 MNF2023/201/1/2011 (First semester) STREPIESKODE BAR CODE UNISA P248(A)
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2 MNF2023/202 CONTENTS Page 1 INTRODUCTION 2 LECTURERS 3 SUGGESTED SOLUTIONS TO ASSIGNMENT 01 4 IMPORTANT INFORMATION 4.1 Answer books 4.2 Examination format 4.3 Preparing for the examination. 4.4 Assignments 5 CONCLUDING REMARKS 2 2 3 10 10 10 10 10 Dear Student 1 INTRODUCTION The purpose of this tutorial letter is to suggest correct answers to the questions in Assignment 02. Your prescribed book for this module is: Gitman, LJ, Principles of managerial finance. 12 th edition. 2 LECTURERS Direct your academic queries only to the two lecturers listed below. Mr AB Sibindi (Head of Module) Office 3.118 AJH van der Walt Building sibinab@unisa.ac.za Ms PL Makoni Office 3.116 AJH van der Walt Building makonpl@unisa.ac.za Please contact the departmental helpdesk on 012 429 4949/6723 for all other queries.
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3 MNF2023/202 3 SUGGESTED SOLUTIONS TO ASSIGNMENT 02 Please work through the suggested solutions and note where you went wrong. Page references to the 12 th edition of your prescribed book (Gitman : 2009 ) have been provided to assist you in understanding the assignment solutions. Question 1 The correct option is 4. N = (3 x 2) PMT = (1000 x 0.16) / 2 = 80 INPUT 6 N -940 PV 80 PMT 1000 FV I = 9,35 Annual yield = 2 x 9.35 = 18.70% Refer to the prescribed book pages 307 to 308. Question 2 The correct option is 1. This question requires you to apply the basic common stock valuation equation on page 345 of your prescribed textbook. Hence, 1 0.18) (1 3 + + 2 0.18) (1 5 + + 2 0.18) (1 58 + = Price of the share = R47,78 Refer to the prescribed book page 345. Question 3 The correct option is 3. This relationship can be presented as follows: Retained earnings of the previous year + net profit for current the year – dividends paid out in the current year = retained earnings for the current year. Therefore, 555 000 retained earnings (2006) + 172 500 net profit current year (2007) – dividends paid Current year (2007) = retained earnings Current year (2007). Solving for dividends paid will give you
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4 MNF2023/202 555 000 + 172 500 – X dividends paid (2007) = 675 000. Therefore X = R52 500 Refer to the table and explanation on page 51 of your prescribed textbook (chapter 2). Question 4 The correct option is 2. FV 11664 17280 19000 47944 10000 16000 19000 : 0 1 2 3 Future value = 47 944 Refer to the prescribed book page 183.
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This note was uploaded on 10/12/2011 for the course MNE 202 taught by Professor Mne during the Spring '11 term at University of South Africa.

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Assignment 02 soulutions_202_2011_1_e - MNF2023/202/1/2011...

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