QUESTION 1

1.1 You buy one share of ZZZ limited today at R 8.70 per share. ZZZ limited payed a dividend of R1.2 per share. One year later you sell the share at R10.22. What is your return on the ZZZ limited share?

17.47%

R10.22

31.26%

none of the above

1.2 You buy one share of DDD limited today at R10.50 per share. DDD limited did not pay any dividends. One year later you sell the share at R3.34. What is your return on the DDD limited share?

68.19%

-68.19%

54.76

none of the above

1.3 You are considering Combat Ltd as a possible investment choice and determined the following possible returns as well as respective probability that each return realizes.

What is the expected return for Combat Ltd?

6.667%

-12.81%

12.72%

None of the above

1.4 Assume that the expected return on a company with the name RR capital is 17% and the typical standard deviation of this stock is 9%, what is this RR capitals coefficient of variation:

17%

9%

1.889

0.529

1.5 An annual rent of R17 500 is to be received for 10 successive years. The first payment is due tomorrow. Assuming the relevant interest rate to be 8%, the present value of this stream of cash flows is closest to

R273 796

R117 426

R253 515

None of the above

1.6 A company requires a sinking fund of R500 000 in four years time. They can invest Rx at the end of every six months at 8% p.a. compounded semi-annually. The value of x (to the nearest R000) using tables is

R111 000

R54 000

R54 264

None of the above

1.7 An asset costing R420 000 has a useful life of 8 years and a scrap or residual value of R42 000. Calculate the annual rate of depreciation using the straight-line method.

11.25%

25.01%

12.25%

none of the above

1.8 An asset costing R420 000 has a useful life of 8 years and a scrap or residual value of R42 000. Calculate the annual rate of depreciation using the reducing-balance method.

11.25%

25.01%

12.25%

none of the above

1.9 The following refers to the next 4 questions

What is the value at A?

(please use full stops (.) and not commas as a decimal divide, for example: 7.12 and not 7,12) (also, only provide numbers, don't provide any letters with your answer)

1.10 What is the value at B?

(please use full stops (.) and not commas as a decimal divide, for example: 7.12 and not 7,12) (Also, answerers that are % answerers, just provide the % value, for example: if the answer is 2.3% just write 2.3)

1.11 What is the value at C?

(please use full stops (.) and not commas as a decimal divide, for example: 7.12 and not 7,12) (also, only provide numbers, don't provide any letters with your answer)

1.12 What is the value at D?

(please use full stops (.) and not commas as a decimal divide, for example: 7.12 and not 7,12) (also, only provide numbers, don't provide any letters with your answer)

1.13What is the balance in an account at the end of 10 years if 2500 is deposited today and the account earns 4% interest, compounded quarterly?

(please use full stops (.) and not commas as a decimal divide) (also, only provide numbers, don't provide any letters with your answer)

1.14 How much will be in an account at the end of five years if the amount deposited today is 10,000 and interest is 8% per year, compounded semi-annually?

(please use full stops (.) and not commas as a decimal divide) (also, only provide numbers, don't provide any letters with your answer)

1.15 Suppose you deposit 100000 in an account today that pays 6% interest compounded annually. How long does it take before the balance in your account is 500000