MAC2602/001/2/2022 8. The can be used to estimate the cost of equity, on the assumption that the market value of shares is directly related to the expected future dividends on the shares. (a) Beta factor (b) Dividend growth rate (c) Dividend growth model (d) Capital asset pricing model 9. Which TWO of the following are examples of connected stakeholders? (1) Customers (2) Suppliers (3) Managers (4) Executive directors (a) Statements (3) and (4) (b) Statements (1) and (2) (c) Statements (3) and (2) (d) Statements (1) and (3) (3) 10. The CEO of Techno Ltd stated at a recent company meeting that the company has a responsibility to consider other stakeholders and ensure that the company minimises any negative impacts to the company. Which ONE of the following best describes the external environmental factor that influence the development of strategy that was referred to by the CEO? Economic environment Political environment (a) (b) (c) (d) Social environment Technological environment 11. When considering Porters five forces model, which ONE of the following would be evidence of high bargaining power of suppliers? (a) The threat of a lot of alternatives or substitute products. (b) The existence of many suppliers of the same product. (c) The supplier's product is not differentiated. (d) The buyers/customers are not important to the supplier - they are relatively small compared to the supplier. (3) 5 MAC2602/Assignment01/2/2022 P 12. Which ONE of the following is NOT a strategic aim of corporate governance? (a) To reduce costs within the organisation. (c) To increase the organisation's transparency to stakeholders. (b) To improve investor confidence in the organisation. (d) To ensure that the organisation abides with relevant laws and acts ethically. (3) 13. Home Products (Pty) Ltd's mission statement is "to offer good service to all the customers". The mission statement has recently been created by senior management but has not been communicated to the rest of the staff. Which ONE of the following benefits is Home Products most likely to see from its new mission statement in the short term? (a) Improved image to customers (b) Improved decision-making strategies (c) Improved awareness amongst stakeholders of Home Products (d) Rapid corporate culture change in Home Products staff to focus on quality 14. John invested R18 000 in an account that pays 6% simple interest per year. What is the amount of the total interest that John will have received at the end of four years? (a) R43 200 (b) R 1080. (c) R22 320 (d) R 4 320 (3) (3) 15. Which of ONE of the following risk related factors is NOT a factor that affect the cost of equity of an organisation? (a) Specific risk (b) Market risk (c) Business risk (d) Premium for cost of debt (3) 16. Sibongile would like to invest R80 000 at the end of each year at an annual compound interest rate of 15%. Determine the value of the investment after five years by using the mathematical formula. [Set your calculator at four decimals and round your final answer to the nearest rand.] Take note: There will be rounding differences of +/- R25 if you use your financial calculator instead of the mathematical formula as was specifically required. (a) R367 445 (b) R539 416 (c) R 53 942 (d) R 80 912