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price of this stock is quoted at R85. Construct an arbitrage strategy given this scenario
An investment with an initial outlay of R500 000 generates five successive annual cash inflows of R75 000, R190 000, R40 000, R150 000 and R180 000 respectively. The internal rate of return (IRR) is [1] 7,78%. [2] 27,0%. [3] 9,48%. [4] 21,3%. [5] none of the above. Question 2 You must choose between two investments, X and Y . The profitability index (PI), net present value (NPV) and internal rate of return (IRR) of the two investments are as follows: Criteria Investment X Investment Y NPV R44 000 −R22 000 PI 1,945 0,071 IRR 16,00% 8,04% Which investment(s) should you choose, taking all the above criteria into consideration, if the cost of capital is equal to 12% per year? [1] X [2] Y [3] Both X and Y [4] Neither X nor Y [5] Too little information to make a decision 17 DSC1630
5. A proforma cost sheet of a company provides the following particulars
Elements of cost
Material - 40%
Direct labour - 20%
Overheads - 20%
The following further particulars are available
a) It is proposed to maintain a level of activity of 2, 00,000 units
b) Selling price is Rs 12 per unit
c) Raw materials are expected to remain in stores for an average period of
one month
d) Material will be in process, on average half a months and is assumed to
be consisting of 100% raw material, wages and overheads
e) Finished goods are required to be in stock for an average period of one
month
f) Credit allowed to debtors is two months
g) Credit allowed by suppliers is one month
You may follow that sales and production follow a consistent pattern,
You are required to prepare a statement of working capital requirements a
forecast profit and loss account and balance sheet of company assuming that
Share capital -Rs 15, 00,000
8% debentures -Rs 2, 00,000
Fixed Assets -Rs 13, 00, 000
Mr Cele is a car salesperson and earns commission on what he sells. He sold a car for R133 500 and received a commission of R4 230,05.
3.2.1 How will you explain what commission is to learners?
3.2.2 Calculate the rate percent at which Mr Cele receives his commission.
Wise Bank offers a savings account that pays simple interest at a rate of 12,5% per annum and Grand Bank offers a savings account paying compound interest at a rate of 10,4% per annum. 3.3.1 Which bank account will give Sam the greatest accumulated balance at the end of the five-year period? Show all your calculations.
You buy a computer directly from the manufacturer for R7332,00 and agree to repay it in equal instalments over three years at the end of each month form now . The interest rate is 10.7% per year, compounded monthly. How much interest will you pay in total?
A home was bought with a 20% down payment of R177 175,00. The balance was financed for 20 years at 9.4% interest per annum, compounded semi -annaully . Find the size of the half yearly payments for the loan.
#340153 on Dec 2023