vollala1052Charter Oak State College
You have purchased a pre-owned motor vehicle in terms of a suspensive sales agreement. You are required to pay monthly instalments from today, 1 June, 2x01 to 1 May 2x06. The cash price of the car is R128 496.00. Finance charges are linked to the prime overdraft rate; the rate is prime plus a premium of 1% per annum. The prime rate is currently 8% per annum, interest compounded monthly.
(a) Determine the equal monthly instalment amount required to purchase the motor vehicle over five years.
On the 15th of December 2020, Great Moments (Pty) (Ltd) is planning its working capital
management for January 2021. Beginning January 2021, the predicted financial information is as
Item Value (R)
Inventory 4 550 000
Trade receivables 4 083 500
Trade payables 1 867 000
Overdraft 2 402 500
For 2020, the company expects to generate sales revenue worth R3.5-million. It sells all its
products on credit. The following are the monthly sales figures for the remaining months of the year,
and January 2021:
Month Sales Value (R)
November 2020 (actual) 2 708 750
December 2020 (predicted) 3 000 000
January 2021 (predicted) 3 500 000
Great Moments (Pty) (Ltd) provides you with the following information also:
• 40% profit margin policy;
• Offers 30 days credit and uses a 365-day year;
• 60% of its customers settle in the month after purchase;
• Remaining customers take an additional month of credit;
• Inventory is expected to increase by R522,500 during the month of January 2021;
• Plans to settle 70% of its trade payables in the month of January 2021 and the balance at the
end of February 2021;
• All the company’s suppliers require settlement within 30 days;
• Purchases on credit in the month of January 2021 are forecast as R2,500,000;
• Interest on overdraft worth R700,000 is due in January 2021;
• The finance manager forecast that January’s operating cash outflows to amount to
• The finance manager informs you that Great Moments (Pty) (Ltd) has no cash and depends
on a bank overdraft. The overdraft is used to finance daily operations. The company has no
plans to raise long-term funds in the month of January 2021.
BBA2_FIN II_ASG_2021 © Regenesys Business School 5
You are required to:
i. Great Moments (Pty) Ltd’s cash operating cycle at the beginning of January 2021.
Round off days to nearest day. (6 marks)
ii. Forecast overdraft required at the end of January 2021. (18 marks)
iii. Great Moments (Pty) Ltd’s current ratios at the beginning and end of January 2021. (6
b. Appraise and recommend five ways or strategies to manage trade receivables you would
provide to the Great Moments (Pty) Ltd’s finance manager. (10 marks)
A 2.75 kg particle moves as function of time as follows: x(t) = 5cos(1.25t+π/4); where
distance is measured in meter and time in seconds. (a) What is the amplitude, frequency,
angular frequency, and period of this motion? (b) What is the equation of the velocity of
this particle? (c) What is the equation of the acceleration of this particle? (d) What is the
spring constant? (e) What are the equations for the potential and kinetic energies of the
particle? (f) What is the total energy?
Minks (Ltd) is a listed company that has been successful in the past decade. In 2021, the
company’s board has decided to expand its operations by embarking on a new project to gain more
market share. Minks (Ltd) would need to invest R30-million, payable at the beginning of the first
year of the project. The project is expected to have a four-year life span. The forecast financial are
Year 1 2 3 4
Units sold per year 320 000 350 000 475 000 500 000
Price per unit sold (R/unit) 140 145 150 150
Variable cost per unit (R/Unit) 70 70 70 70
Fixed costs per annum (R) 2 500 000 2 500 000 2 700 000 2 700 000
Additional project information:
• Price and costing information are in current terms before the application of selling price
inflation of 7% per annum, variable cost inflation of 4% and fixed cost inflation of 5%;
• Current corporate tax is at 28% and the tax liability is payable in the year it arises. Assume
profit from the project is similar to its cash flow;
• Minks (Ltd) has a cost of debt of 10%;
• The risk-free rate is 7%, the return on the market where Minks (Ltd) is listed is 15% and it has
a beta coefficient of 1.1;
• It is the company’s policy to maintain a 40/60 debt/equity financing; and
• Minks (Ltd) uses its weighted cost of capital in all project appraisals.
Recommend whether Minks (Ltd) should embark on this expansion project or not. Show all your
calculations to justify your recommendation.
The covariance of returns between Share A and Share B is 0.0243. Share A has exhibited historical returns with a mean of 12% and standard deviation of 18%. Over the same period, Share B had average returns of 21% with a standard deviation of 27%. Calculate the expected return and standard deviation of a portfolio consisting of $50,000 in Share A and $100,000 in Share B.
Doc Inmaking is trying to identify a clear colorless solvent. The possible identities are toluene (density = 0.867g / m * L) , ethanol (density = 0.789g / m * L) , and chloroform (density = 1.483g / m * L) . He obtains an experimental density of 0.81 plus/minus 0.03g / m * L . What is the most likely identity of his sample? Is his experimental value sufficiently accurate?
Assume that you are the owner of a sports shoe shop in a shopping mall that sells Nike running shoes From your till slips that indicate your annual sales and from a questionnaire answered by your customers you found the following The potential amount of shoes that you can sell per year is 6 000 pars, regardless of whether you change the prices of the shoes or not. If you adjust your price downwards or upwards by 1%, the consumers tend to buy 15% either more or less Your supply curve indicates that you should always keep 500 units in stock and that al% change in the price of a pair of shoes tends to increase or reduce the sales of a pair of shoes by 0.5%. 221 Construct your shop's demand and supply functions for running shoes. 2.22 Calculate the price of a pair of shoes as well as the expected annual sales (4) 2.23 Determine the elasticity of demand of your shoes (3) 224 Would it be worthwhile for you to launch a sale at the end of the month, in other words, would it help you to increase your revenue?
A dipole antenna dimensions has been designed to operate in 65MHz.
Will the same antenna work properly if frequencies a) 130MHz b) 195MHz are used?
Your answer should include the current distribution and impedance variation along the length of the antenna and how those are affected when frequencies of 130MHz and 195MHz are introduced. Also, include sketches of radiation patterns with respect to the changes in frequencies used.
Make sure you give descriptive answer in order to achieve full marks. Use diagrams to help you with the answer.
Dieting is common in our society and everyone wants a piece of the action. So many diets are available to choose from if someone wants to change their health; e.g., lose weight. Often times, diets are promoted with claims of great success.
For the purposes of this assignment, you are to choose a particular diet and analyze it in terms of scientific evidence, or lack thereof. Then, you are to design a controlled experiment to test a hypothesis based on this diet. The experiment must include multiple individuals within a control and experimental group. You must specify how you will measure the outcome of the experiment identifying both the independent and dependent variables. You must describe the potential outcomes of the experiment in terms of supporting the hypothesis.