FINANCIAL MANAGEMENT 4 INDIVIDUAL ASSIGNMENT 1
ALL ASSIGNMENT MUST BE TYPES (No hand written assignment will be accepted)
Due date: 17/08/2016. No late assignment will be accepted
Any form of Copy work will result to zero
Question: 1 (4 marks)
Class examples on TWR & MWR
Allan Brown buys 200 shares of A&W Ltd on 1 January 2012 at a price of R500 per share. A dividend
of R 45 per share is paid on 31 December 2012. Assume that this dividend is not reinvested. On 1
A company is considering undertaking a project which has a three year life and costs R 2 400.
It is anticipated that the project will increase revenues by R400 a year and save R720 a year
in operating costs. The anticipated impact on the firms in
Richard Coleman is a portfolio manager of a mutual fund based in the United States. The fund
invests in China, Argentina and Indonesia. The details of the compositions of the fund and its
benchmark portfolio are as follows
The Main Considerations in Benchmark Selection
Given the importance of selecting the right benchmark, here are some key questions to
answer before making a choice.
What are your overall performance goals, and what is your t
Evergreen Ltd has just issued 5 semi-annual fixed coupon (10%) bond that matures in 5 years (face value
= R1m). The first interest payment is due in exactly 180 days. Evergreen Ltd would like to hedge the
interest rate exposure rega
How long will it take a sum of money to treble itself at 14 percent?
Answer: 8.38 years
R100 is invested at 10 percent per annum (pa) compounded semi-annually. After 3 months,
the interest rate changes to 12 percen
Tutorial: Session 5
RB = 15%
Rm = 10%
RA = 7%
Rf = 5%
The correlation between RA and Rm = 0.50, while the correlation between RB and Rm = 0.90.
The tracking error for fund A and
It is 15 Sep 2011. I have an equity portfolio worth R10 million with volatility of 30% to be
hedged for 3 months. Suppose the ALSI futures with closed-out date on 15 Dec 2011 is
currently at 28 000 with volatility of 20%. Ca
Thabo Zuma purchases a vehicle to the value of R200,000 today and
expects to make repayments for the next 5 years. The bank charges
Thabo at prime, 15.25% pa compounded monthly.
1. draw up an amortisation table up to maturity date sh
Perform a complete performance attribution for Maxipro fund based on the following information.
B Tech Degree: Business Administration
Subject: FINANCIAL ACCOUNTING ASPECTS IV
Title of assignment: Question 6.1(A), Question 6.2 (B)
Date of Submission: 20 September 201
Page 1 of 3
: MACROECONOMICS (MAC)
: 2ND SEMESTER 2010
Answer ALL questions.
References are to the prescribed textbook: Mohr, P., Fourie, L., and associates.
2007. Economics for South African
M 312 Tut. Chapter 17 : Distributions to Shareholders (Dividend Policy)
1) Chandler Communications CFO has provided the following information:
The companys capital budget is expected to be R5,000,000.
The companys target capital structure is 70 percent de