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EBAD401: Financial Management (2025)
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Your company is looking at a potential new project. The project has projected depreciation of R720, operating cash flow of R4 000, fixed costs of R6 000, and selling price per unit is R9.80 . The variable cost per unit is R4.20 and the contribution margin is R5.60. What is the cash break-even level of production in RAND AMOUNT? Round off all your answers to TWO decimal places.
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All of the following are regarded as disadvantageswhen using the dividend growth model to estimate the cost of ordinary shares (equity), except:
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Which one of the following statements regarding investment criteria is incorrect?
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Afropunk Productions is considering a project which will produce sales of R160 000 and variable costs of R80 000, with depreciation of R20 000. If the tax rate is 33%, what is the amount of the operating cash flow (OCF)?
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All of the following are regarded as disadvantages when using the dividend growth model to estimate the cost of ordinary shares (equity), except:
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The cash flow from projects for a company is computed as the
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You have been appointed as the new financial manager of African Delight (Pty) Ltd. You need to evaluate project A with the following cash flows: Year Project A (CFs in Rands) 0 -66 900 1 32 000 2 38 000 3 36 000 The applicable discount rate for the project is 12%. The net present value (NPV) of project A is__________
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As the new financial manager of African Delight (Pty) Ltd. You need to evaluate project A with the following cash flows: Year Project A (CFs in Rands) 0 -66 900 1 32 000 2 38 000 3 36 000 The applicable discount rate for the project is 12%. Calculate the payback period for project A ___________
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The Warriors Sports Company has issued 8% coupon bonds. Coupons are paid on a quarterly basis, the bonds have a R1 000 par value and will mature in 12 years. The bonds are currently selling at a price of R950. The company's tax rate is 28%. What is the firm's pre-tax cost of debt?
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Copy World Ltd is a major printing and stationery group in South Africa. The company's next dividend payment will be R3.80 per share. The dividends are anticipated to maintain a 7% growth rate for ever. If Copy World's shares currently sell for R50, what is the required rate of return?
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