Johnson & Johnson have

agreed to save R2 200 per month as a buffer against economic downturns, for the

next six years. The money will be set aside in a separate savings account,

which pays 8% interest compounded monthly. They deposit the first R2 200 today.

If the company had wanted to deposit an equivalent lump sum today, how much

would they have had to deposit?

Reuben is considering taking out a loan for R15 000 at an interest rate

of 8,5% and having to pay it back in five equal instalments over the course of

the following five years. How much would he still owe at the end of the first

year, after you have made the first payment?

Raphael’s grandfather recently passed away and left him with R100 000 in a trust fund that pays 7% interest. He must spend the money on his college education, and he must withdraw the money in four equal instalments, beginning immediately. How much could he withdraw today and at the beginning of each of the next three years and end up with zero in the account?

King George Motors had a profit for the year of R428 571 and a sales amount of R10 000 000. The company had a return on equity (ROE) of 15% and an equity multiplier of 1,67. What is company’s total asset turnover ratio?

The ordinary shares of Creative Living are now trading at R104 per share, which represents a price-earnings (P/E) ratio of 8,0. If the company has 10 000 shares of ordinary shares outstanding, a debt ratio of 40%, and the total liabilities are R1 400 000, what is its return on total assets (ROA)? 

Supreme Streetwear’s market share price is R75 per share. The company has 97 083 in total assets. Its statement of financial position shows R 6 655 in current liabilities, R15 831 in long-term debt, and R74 597 in total equity. It has 7 000 shares of ordinary shares outstanding. What is the company’s market-to-book ratio?

Benjamin Clark, Junior Financial Analyst for Kaboom Fireworks Enterprises, has calculated the following ratios for the company for the most recent year-end:

Profit margin =16,5%

Total asset turnover = 0,5

Debt ratio = 62,5%

The company had total assets of R2 277 000. What is the company's return on equity (ROE)?

Pace Software Technologies’ management has announced that the company has current assets of R25 080 and a current ratio of 1,32. The company has a cost of goods sold of R12 020 and a quick ratio of 1,15. What is the company inventory turnover? 

At a recent family reunion, you sold your brother 100 shares of your

newly founded company, Fidelity Investments. When you all got together, your

brother gave you a cheque for the shares, and you gave him the share

certificates. Which of the following statements best describes this

transaction?

The principal-agent problem describes an instance where: