Question $21$Not yet answeredFlag questionQuestion textWhich of the following items describes an index measure of systematic risk?Question $21$Answera.Variance.b$.$Standard deviation.c$.$Beta.d$.$Coefficient of variation.Question $22$Not yet answeredFlag questionQuestion textMoney market is a market for which of the following:Question $22$Answera.market for financial intermediariesb.market for bondc.market for long term securitiesQuestion $23$Not yet answeredFlag questionQuestion textHappy Simataa has just bought a scratch lottery ticket and won N$$10000.$ He wants to finance the future study of his newly born daughter and invests this money in a fund with a maturity of $18$ years offering a promising yearly return of $6\%.$ What is the amount to the nearest N$ available on the $18$th birthday of his daughter? Answer:Question $24$Not yet answeredFlag questionQuestion textNangula has just bought a house. She estimates that the roof will have to be renewed at a cost of N$$25000$ after $20$ years. To cover these costs, she intends to save an equal amount of money at the end of each year, earning $6\%$ annual interest rate. How much is the yearly annuity to the nearest N$$?$Answer:Question $25$Not yet answeredFlag questionQuestion textTotal portfolio risk is $\_\_\_\_\_\_\_\_\_\_.$Question $25$Answera.equal to systematic risk plus diversifiable riskb.equal to systematic risk plus non$-$diversifiable riskc.equal to avoidable risk plus diversifiable riskd.equal to systematic risk plus unavoidable riskQuestion $26$Not yet answeredFlag questionQuestion textNamcool Ltd is a cooling and refrigeration company that supplies and installs refrigerators and air conditioners. Due to increased competition, the company is experiencing a reduction in its return on equity and the directors are worried that the company may fail to attract additional capital if the current trend continues. In order to boost sales, the marketing director has planned to engage into an aggressive sales promotion to increase the companys profits. The following relates to the following years performance after the aggressive sales promotion.Operating income $($EBIT$)$ N$$2400000$Sales revenue N$$16000000$Asset turn over $1\mathrm{.}6$ timesInterest N$$400000$Total debt N$$5000000$The companys income tax rate is $30\%$ and the current years return on equity is $20\%.$Calculate the net profit margin in percentage to $2$ decimal places $($e$.$g$.10\mathrm{.}20)$Answer:Question $27$Not yet answeredFlag questionQuestion textR$$ssing Uraniums $($RU$)$ operations consist of two distinct activities: the first is mining uranium$-$bearing rock, while the second is processing this ore into uranium oxide for the worlds nuclear energy market, which fuels the generation of electricity. RU undertook a project involving the construction of a seawater desalination plant near Swakopmund. The project was completed on $01$ January $2019$ at a cost of N$$10000000.$ After $5$ years, the company has an obligation to dismantle and restore the environment in compliance with the Ministry of Environment & Tourism regulations. Management of RU have established that the cost of dismantling and restoration of the environment was N$$4000000$ on $1$ January $2019.$ RU would want to evaluate several investment opportunities as well as to understand the overall risk of their assets as perceived by the market. Accordingly, the directors have set out to calculate the weighted average cost of capital $($WACC$)$ for the company. The assets of the company are currently financed by equity, bonds and preference shares. The details are as follows:Debt: The company issued $10000$ bonds that are currently outstanding with a $6\%$ annual coupon rate. The bonds mature in eight years and have a N$$1000$ face value. These bonds are currently trading in the market for N$$1100.$ Preference shares: The company also has in issue $3\%$ Preference shares with a par value of N$$100$ each amounting to $100000$ shares. These preference shares are perpetual shares that are not redeemable at any time. The preference shares are currently selling for N$$30$ per share in the market.Equity: The company has $500000$ shares currently selling for N$$25$ each in the market. The shares have a beta of $1\mathrm{.}5.$ The risk$-$free rate is $4\%,$ and the expected market return is $12\%.$ Recently, the company paid a dividend of N$$2\mathrm{.}32$ per share and management expect that the growth in dividends will be $6\%$ per share, forever. Tax rate is $20\%.$Estimate the pre$-$tax cost of debt to $3$ decimal places $($e$.$g$.0\mathrm{.}2531)$Answer:Question $28$Not yet answeredFlag questionQuestion textWhich of the following statements is not true about time value of money?Question $28$Answera.Future value is the value in dollars that an investment will grow to over a stated time period at a specified interest rateb.Purchasing power of money differs with the passing of timec.Discounting is the same as compoundingd.Money received today is more favourable than money received lateQuestion $29$Not yet answeredFlag questionQuestion textFuture value interest factor takes into account:Question $29$Answera.Inflation rateb.Deflation ratec.Discounting rated.Compounding rateQuestion $30$Not yet answeredFlag questionQuestion textThe management accountant of Windhoek Consulting Engineers $($WCE$)$ has provided us with the following information: WCE has N$$74$ million of accounts receivable, N$$60$ million of inventory, and N$$128$ million of accounts payable. Its average daily sales are N$$1910000$ and its gross profit margin is $30\%.$Calculate the days sales outstandingAnswer:Question $31$Not yet answeredFlag questionQuestion textWhich of the following factors does not affect the capital structure of a company?Question $31$Answera.Size of the companyb.Cost of capitalc.Composition of the current assetsd.Expected nature of cash flowsQuestion $32$Not yet answeredFlag questionQuestion textThe degree of financial leverage $($DFL$)$:Question $32$Answera.None of theseb.Increases as EBIT increasesc.Measures financial risk of the firmd.Is zero at financial break$-$even pointQuestion $33$Not yet answeredFlag questionQuestion textThe management accountant of Windhoek Consulting Engineers $($WCE$)$ has provided us with the following information: WCE has N$$74$ million of accounts receivable, N$$60$ million of inventory, and N$$128$ million of accounts payable. Its average daily sales are N$$1910000$ and its gross profit margin is $30\%.$Calculate the Cost of Goods Sold Answer:Question $34$Not yet answeredFlag questionQuestion textNamcool Ltd is a cooling and refrigeration company that supplies and installs refrigerators and air conditioners. Due to increased competition, the company is experiencing a reduction in its return on equity and the directors are worried that the company may fail to attract additional capital if the current trend continues. In order to boost sales, the marketing director has planned to engage into an aggressive sales promotion to increase the companys profits. The following relates to the following years performance after the aggressive sales promotion.Operating income $($EBIT$)$ N$$2400000$Sales revenue N$$16000000$Asset turn over $1\mathrm{.}6$ timesInterest N$$400000$Total debt N$$5000000$The companys income tax rate is $30\%$ and the current years return on equity is $20\%.$Calculate debt to equity ratioAnswer:Question $35$Not yet answeredFlag questionQuestion textSuppose Provincial Power Company $($PPC$),$ a large public utility, paid a dividend of N$$4$per share last year. The stock currently sells for N$$60$ per share. You estimate the dividend will grow steadily at $6\%$ per year into the indefinite future. What is the cost of equity capital for PPC to $4$ decimal places $($e$.$g$.0\mathrm{.}2531)?$Answer: