3.2 REQUIRED Use the information provided below to estimate the monthly sales revenue at which Sebcom Limited would break even. (6 marks) INFORMATION The expected operating results of Sebcom Limited for two months are summarised as follows: January February Sales R480 000 R560 000 Operating profit R160 000 R196 000

4.2 REQUIRED Study the information given below and calculate the Accounting Rate of Return on initial investment (expressed to two decimal places) of each project. (6 marks) INFORMATION The following data relate to two investment projects, only one of which may be selected: Project A Project B R R Initial capital expenditure 180 000 180 000 Net cash inflow per year: Year 1 90 000 36 000 Year 2 72 000 36 000 Year 3 54 000 86 000 Year 4 36 000 94 000 Expected scrap value

(not included in the figures above) 36 000 0 Note: Depreciation is calculated using the straight-line method. The cost of capital is 15%. 4.3 REQUIRED Use the capital asset pricing model to calculate the cost of the ordinary shares from the information provided below. (5 marks) INFORMATION The financial managers of Computex have the following information at their disposal: The risk-free rate is presently 14%. The company's beta coefficient is 0.90. The return on the JSE's overall index is presently 20.6%.

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