Thursday, May 7, 2020

Finance - 1071 Words

INSTRUCTIONS: | 1. Answer all questions. 2. Answer in ENGLISH. 3. Arithmetic calculators are allowed. (Cellular phones may not be used as calculators). 4. Only answers written in the answer booklet will be marked. 5. Dictionaries are not permitted. Question 1 Listed below are multiple choice questions. Read the statements and select the most appropriate Answer. Write the numbers 1.1 to 1.10 and then only the alphabet of your choice. Eg 1.11 C 1.1. _________ analysis involves the comparison of different firms’ financial ratios at the same point in time. (a) Timeseries (b) Crosssectional (c) Marginal (d) Quantitative 1.2. _________ analysis involves comparison of current to past performance and the†¦show more content†¦| | | | | Industry Average | Ratio | 2009 | 2010 | 2011 | 2011 | Current ratio | 1.6 | 1.7 | — | 1.6 | Quick ratio | 0.9 | 1.0 | — | 0.9 | Inventory turnover | 6.0 | 5.0 | — | 8.4 | Average collection period | 40 days | 50 days | — | 40 days | Total asset turnover | 1.5 | 1.5 | — | 1.75 | Debt ratio | 60% | 56% | — | 50% | Times interest earned | 2.5 | 3.5 | — | 4.0 | Gross profit margin | 20% | 19.7% | — | 20% | Operating profit margin | 4.7% | 4.8% | — | 6% | Net profit margin | 2.0% | 2.3% | — | 3% | Return on investment | 3.0% | 3.5% | — | 5.25% | Return on equity | 7.5% | 7.95% | — | 10.5% | (a) Calculate the firm’s 2011 financial ratios. (b) Analyze the firm’s performance from both time-series and cross-sectional viewpoints. (c) Comment on the firm’s overall financial condition and performance. Question 3 Senayshia’s House of Fashion wants to prepare a cash budget for months of September through December. Sales were R50 000 in June; R60 000 in July and R65 000 in August. Sales have been forecasted to be, R72 000, R63 000, R59 000, and R56 000 for months of September, October, November, and December, respectively. In the past, 10 percent of sales were on cash basis, and the collections were 50 percent in theShow MoreRelatedFinance1352 Words   |  6 Pagesfinancial manager differ from the traditional financial manager? Does the modern financial managers role differ for the large diversified firm and the small to medium size firm? The traditional financial manager was generally involved in the regular finance activities, e.g., banking operations, record keeping, management of the cash flow on a regular basis, and informing the funds requirements to the top management, etc. But, the role of financial manager has been enhanced in the todays environment;Read MoreFinance1074 Words   |  5 PagesCORPORATE FINANCE COURSE CORPORATE FINANCE 2.1 Working Capital Management Sept. 2014 Ir Frank W. van den Berg mba Vrije Universiteit, Amsterdam ALYX Financial Consultancy bv, Aerdenhout FWvdB/2014 1 OUTLINE CORPORATE FINANCE FWvdB/2014 †¢Ã¢â‚¬ ¯ Basics Guiding principles †¢Ã¢â‚¬ ¯ Time value of money + Capital Budgeting †¢Ã¢â‚¬ ¯ Valuation of CF + Bonds †¢Ã¢â‚¬ ¯ Valuation of shares (+ co.’s) †¢Ã¢â‚¬ ¯ Financial Analysis (Ratios) †¢Ã¢â‚¬ ¯ Financial Planning (EFN) †¢Ã¢â‚¬ ¯ à  Ã¯Æ'   Working Cap. Mgt. (A/R,Read MoreThe Finance1054 Words   |  5 Pagesrequires intentional short-term and long-term planning. 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As the banking and finance industry has transformed, so has the process of how your money is handled. To accompany those changes, regulators and lawmakers create laws designed to protect consumers, banks, and the economy as a whole. As you will learn, the history of the bankingRead MoreFinance : Finance A Carry Trade Essay1144 Words   |  5 Pages In finance a carry trade is a strategy that consists of borrowing at a low interest rate currency to fund investment in higher yielding currencies. (Moffett) The country in which the investors borrow from is called the funding country and the country where the investment occurs is called the target country. (4) Carry trade is also termed currency carry trade; this strategy is speculative in that the currency risk is present and not managed or hedged. 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It comes by a business after it makes profit and is kept separate to use in other ways such as expanding the business by developing new buildings or certain areas, buying new

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