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Past exam papers_MAYJUNE_2005

# Past exam papers_MAYJUNE_2005 - Untjue Duaber of ltapsr...

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UNI SA UNTVERSITY OF SOUTH AIIXTC^ Duratlon ! 2 rburs O EirrcrEna t FIRAT ! SECOND ! Ml{F202-3 r ruzzrr BUSINESS MANAGEMENT (FINANCIAL) 202 MR D MA(INA PROF J MAN'( Untjue Duaber of ltapsr urricte n6m6! ven eraeltel 4L4271 uay/irln€ 2005 70 Harks THIS EXAMINATION PAPER REMAINS THE PROPERTYOF THE UNIVERSITYOF SOUTH AFRICA AND MAY NOT BE REMOVED FROM THE EXAMINATION ROOM Use of a non-programnable pocket calculato! peari8dible. This paper consists of 17 pagss including 5 pages for rough work (p.18-22), AppendixA (interEst tables) (pp i-iv) and instructions for the completion of a mark reading sheet. Answer SECTION A and SECTION B SECTION A is worth 50 marks and SECTION B 20 marks. Your final mark will be exDressed out ot 70 rTURN

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2 MULTIPLE CHOICE QUESTIONS MNF202-3 May/June 2005 MNF202-3 May/June 2005 SECTION A: Determine the expected rate of return if the following probabilities (p.) and assoctareo rates ot return exist: Risk may be defined as the 1. -/2 3 4. v1 2. 3 P .20 .50 30 12,O0% 12,80% 13,660/0 14,460/. P, 40 .50 .10 10 670/o 12,74o/o 15,00% 25,150/o Rate of return ln nno/^ ) 12,OOh L. 16.00% | rr 1. 2. - 4. chance of a financial gain or loss. variability of operating expenses inability of a firm to generate a profil all of the above An asset was purchased a year ago for R'100 000 and currently has a market value of Calculate the standatd deviation (o) for the returns of the following assetl 1 2. 3. 1 26,54% 27,640 36,200/" 38,00% Rate of return (kr) 250h 10.k -100/o c- L 9 u?, t I :l cti i I _t lnvestment B lnvestment c R5 000 000 R5 000 000 11Vo 14% 1qvo tu s Edcon Ltd has invested in an asset. The required rate of return is 15% and the expecteg return (k) is 16010, Risk estimatss indicate that the standErd deviation is 18%. The doefficibnt ot variation (CV) of the asset is closest to: ; lt - - 1. o,Es cV. ; f. _ .'2. 1,13 3 1,20 4. 2,OO Which statement is correct? 1 Retum on equity measures th€ overall effectiveness ofmanagement in generating incoms with its available assets. 2 The net profit margin measures the returns on owner's investment in the firm. 3 The price-earnings ratio is commonly used to appraise share value 4. The gross profit margin and earnings per share are two frequently cited ratios of profitability which can be directly read from the income statemenl. -b. c A 7 R132 000. During the year it generat€d R5 000 before{ax cash receipts The firm ih subiect to a 30% tax rale. The rate of return is clos€st to . ... -r . Pr _ l':1-1 - gr r,3 l.r':c_ .,.(r(c I -;(( ,' l "-l 3 How many of the statements below are coffecl given the following informalion: lnitial inveslment Annual rate of relum: Pessimistic 'loo/o Most likely l2o/o Optimistic 160/o The range for investmenl B is 13% The range
4 The following informatron for yebo Lid is available:

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Past exam papers_MAYJUNE_2005 - Untjue Duaber of ltapsr...

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