Past exam papers_ OCTNOV_2005

Past exam papers_ OCTNOV_2005 - U NIVERSIfY E...

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UNIVERSIfY E)IAI.IINATIONS UNIVER.s Ilt EIASEI(SATENS UNISAIffi Duration ! 2 llours EtrrxlltaR6 | FIRSf: SECOND ! Ml'|F202-3 r reu es:r BUSINESS MANAGEMENT ( FINANCIAL) october/Nov€nbsr 2OO5 202 IIR D !{MINA IIIR K5 NAICXER .\ Use of a non-plograrunable pocket calculator permisaible. This paper consrsts of 19 pages including 5 pages for rough work (p 20-24), Appendrx A (interest tables) (pp i-iv) and instructions for the completion of a mark reading sheet Answer SECTION A and SECTION B SECTION A is worlh 50 marks and SECTION B 20 marks Your tinal mark wil be
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A: 2 MULTIPLE CHOICE QUESTIONS MNF202-3 October/November 2005 3 Which of the following statements are correct? Depreciation. .. MNF202_3 October/November 2005 '1. Whrch of the following are key activities of the financial manager? making dividend decisions linancial analysis, planning and contrc, making investmentdecisions making financing decisions 1 ab 2 bd 3. acd 4. abcd Which one of the tollowing slatements is incorect? 1 A company is a legalentity 2. The board of directors are the true owners of the company. 3. The difficult of transter of ownership is a major weakness of a partnership 4 A close corporation and a company both have limited liability. Which statement is corr€ct? 1 An investment banker analyses securilies and constructs investment portfolios 2. Most of the transactions involving preference shares are made in the money market. 3. Treasury bills and negotiable certificates of deposit are traded in the capital (. marKet 4 An investment banker acts as a middleman between the issuerand buver ofa new securitv 4 A firm's cash flows become more Dredictable as the 1. current raiio expands. 2. return on owners equity increases. 3. current liabilities decrease. 4 current assels decrease. is a use of funds. reduces the tax liability of the firm is taken Into account when EBIT is calculated has a direct influence on the firm's cash flow 1 ab 2. bc 3 acd 4 abcd Which one of the following formulas is used to calculate the operating cash flow? o c d a o d 2. 6 1 2. 3 EBIT(1-T) + D(T) EBDIT + D EBIT + D(T) EBDIT(1-T) + D(T) Where EBIT = earnings betore interest and tax EBDIT = earnings before depreciation, interest and tax D = depreciation T = the tax rate 7. Which statement is correct? ., i 1 . Return on equity measures the overall effectiveness of management in generating income with its avaibbb assets 2. The net profit margin measriFs the returns on owndr's invesunent in the firm. 3. ThE price-earnlngs ratio is commonly
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This note was uploaded on 10/12/2011 for the course MNF 2023 taught by Professor Mnf during the Spring '11 term at University of South Africa.

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Past exam papers_ OCTNOV_2005 - U NIVERSIfY E...

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