$4\mathrm{.}1$

REQUIRED

Use the information given below to calculate the cost $($as a percentage, expressed to two decimal places$)$ to

Sunol Stores of forfeiting the discount. Assume a $360-$day year.

$(4$ marks$)$

INFORMATION

The credit terms granted by Kiat Manufacturers to Sunol Stores are $30$ days but the manufacturer is prepared

to allow a $4\%$ discount if Sunol Stores pays the account within $12$ days.

$4\mathrm{.}2$

REQUIRED

Study the information provided below and calculate the Economic Order Quantity.

$(4$ marks$)$

INFORMATION

Lotus Traders purchases a product which has an annual demand of $100000$ units. The product is purchased

from a supplier at R$20$ per unit. The ordering cost is R$10$ per order. The holding cost is $10\%$ of the unit

purchase price.

$4\mathrm{.}3$

REQUIRED

Use the information provided below to calculate the cost of the loan $($expressed as a percentage to two decimal

places$).$

$(4$ marks$)$

INFORMATION

Trev Limited approached Fenbank for a long$-$term loan to expand its operations. Fenbank granted a loan of

R$500000$ at a cost of $20\%.$ Trev Limited$$s marginal tax rate is $27\%.$

$4\mathrm{.}4$

REQUIRED

Calculate the cost of the preference share financing $($expressed as a percentage to two decimal places$)$ from

the information provided below.

$(4$ marks$)$

INFORMATION

Tyco Limited intends raising R$600000$ by issuing $12\%$ preference shares at an issue price of R$200$ each. The

floatation cost is expected to be R$8$ per share.

$4\mathrm{.}5$

REQUIRED

Use the information provided below to calculate the cost of the new ordinary shares $($expressed as a

percentage to two decimal places$).$

$(4$ marks$)$

INFORMATION

Aviz Limited wants to issue $300000$ new ordinary shares. The dividend growth rate over the past few years

has been $12\%$ p$.$a$.$ and the business plans to pay a dividend of R$4$ per share. The selling price of the ordinary

shares is R$26$ and floatation costs are estimated at R$1$ per share