QUESTION $1(13$ marks$)$This section consists of short case studies, multiple$-$choice and matching questions. Eachquestion must be considered independently, except where specific reference is made toinformation in another question. The marks per question are indicated in brackets after eachquestion.Note: Negative marking does not apply to these multiple$-$choice and matching questions.For multiple$-$choice and matching questions, you are only required to write the questionnumbers with your corresponding answer next to it$,$ for example:$1\mathrm{.}1$ C$1\mathrm{.}2$ A$1\mathrm{.}3\mathrm{.}1$ B$1\mathrm{.}3\mathrm{.}2$ DThe questions are as follows:$1\mathrm{.}1$ Acres Ltd is based in country A $($functional currency A$$).$ Acres Ltd suppliers are basedin the UK$,$ and they invoice Acres Ltd in British Pounds $($GBP$).$The current spot rate of exchange is A$$/$GBP $15\mathrm{.}50($that is A$ $1=$ GBP $7\mathrm{.}52),$ and theexpected interest rates in the UK and country A are $3\%$ and $7\%$ respectively over thenext year.What is the forecast spot rate in one years time using the interest rate parity theory andassuming that the current forward rate is the best forecast of the future spot rate? $(2)$A A$$/$GBP $6\mathrm{.}64$B A$$/$GBP $14\mathrm{.}92$C A$$/$GBP $16\mathrm{.}10$D A$$/$GBP $36\mathrm{.}1761\mathrm{.}2$ Barns Ltd wishes to ascertain the value of its equity.The following schedule of forecast posttax cash flows after financing charges ofBarns Ltd was obtained:Posttax cash flows afterfinancing charges $($forecast$)$:R$($million$)$Year $198$Year $2105$Year $3110$The forecast cash flows are expected to grow at a rate of $5\%$ per annum after year $3$into perpetuity.The company has a cost of equity of $14\%$ and a WACC of $11\%.$Rounding used to obtain answers below: $3$ decimal places for the discount factor $($per the relevant tables$)$; $0$ decimal places for other workings and answers; If a financial calculator is used, answers will differ slightly but will still be close toidentify the correct answer.What is the value of the companys equity? $(3)$A R $317$ millionB R $336$ millionC R $1107$ millionD R $1193$ million$1\mathrm{.}3$ Cades is a private investment company. At year end, Cades has an asset portfolio ofR$900$ million, with a standard deviation of R$30$ million.Calculate the value at risk of the portfolio at a $97\mathrm{.}5\%$ confidence level $($answers arerounded to the nearest Rmillion$).$There is a $2\mathrm{.}5\%$ chance that the value of the portfolio will be or below. $(2)$A R $830\mathrm{.}0$ millionB R $841\mathrm{.}2$ millionC R $850\mathrm{.}7$ millionD R $877\mathrm{.}5$ millionMAC$4865/$Assignment$\_0371\mathrm{.}4$ Decks Ltd is a South African based company and expects to receive USD $5000000$from a United States customer. The value in South African Rands $($ZAR$)$ will depend onthe exchange rate between the ZAR and USD resulting in gains and losses as theexchange rate changes.The mean exchange rate is ZAR $18\mathrm{.}90/$ USD $1$ and the daily volatility of the ZAR$/$USDexchange rate is $1\mathrm{.}5\%.$Calculate the range of values that Decks Ltd will be $95\%$ confident of receiving in $1$ day.Decks Ltd is $95\%$ confident that the amount received will be between $(3)$A R $92168213$ and R $96831788.$B R $91192973$ and R $97807028.$C R $89775000$ and R $94950000.$D R $91721700$ and R $97278300\mathrm{.}1\mathrm{.}5$ Exfect Ltd is a software developing company with significant intangible assets. Thedirectors want to calculate the CIV $($Calculated Intangible Value$)$ of the company.Exfect Ltd reported a profit before interest and tax of R$25$ million in the most recentaccounting period. The company has a WACC of $10\%.$ Its debt finance comprises along term bond with a coupon rate of $7\%$ and a nominal value of R$10$ million. Theindustry average pretax return on assets for the software development industry is $13\%,$and the corporate tax rate is $27\%.$ Its tangible assets are worth R$15$ million.What is the CIV of Exfect Ltd $($to the nearest R$0\mathrm{.}1$ million$)?(3)$A R $163\mathrm{.}2$ millionB R $168\mathrm{.}3$ millionC R $140\mathrm{.}2$ millionD R $136\mathrm{.}0$ million