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PFIN026-25-EX06
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Which of the following is true regarding the difference between debt and equity capital?
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Which of the following is a reason for a firm to repurchase its shares?
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Venture Capital Ltd considers issuing 5 million 9% preference shares, which is expected to sell at R20 each. Flotation cost is expected to amount to 40 cents per share. The cost of preference shares is ...
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Venda Ltd has R1 000 000 available to invest. Five alternatives are under consideration requiring an amount of R1 400 000. The firm may determine their optimal capital budget by means of ...
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The ordinary shares of Afrox are trading at R14,00 each on the Johannesburg Stock Exchange (JSE). The company expects to pay a dividend (D1) of 54 cents per share at the end of the coming year. The growth rate (g) in dividends is 10%. The cost of ordinary shares is closest to ...
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Better Sleep manufactures luxury beds. The price of the bed is R19 000 per unit (fixed). For the year 2020, Better Sleep is expected to function at full capacity and 1 000 units are to be manufactured. Better Sleep’s total fixed cost amounts to R10 000 000 and the total variable cost amounts to R14 000 000. Calculate the operating breakeven point in rands.
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An initial investment of R1 600 000 is required to start up a boutique. Market research indicates that the boutique should be able to generate net cash flow of R80 000 per month. The payback period is ... months.
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Akani Ltd manufactures school laboratory tables. The price of the table is R2 500 per unit (fixed). For the year 2020, Akani is expected to function at full capacity. Akani’s total fixed cost amounts to R5 000 000 and the variable cost per unit amounts to R1 250. Calculate the operating break-even point in units.
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A firm uses financial leverage in order to ...
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A company expects to sell its shares at R10 each and to pay a dividend (D1) of 50 cents per share at the end of the first year. Flotation costs will amount to 20 cents per share. The growth rate (g) in dividends is expected to be 10%. The cost of new ordinary shares is ...
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