Alpha Limited has issued 5 million shares, the shares trade at R19 per share on the Johannesburg Securities Exchange (JSE). The firm’s assets amount to R85 million and total liabilities to R1.5 million. The firm has a net asset value (NAV) of … and trades at a premium closest to … against the NAV.Select one:a.R17.03 18.5%b.R16.70 13.8%c.R16.70 18.5%d.R17.03 13.8%

Firewall corporation has issued 6 000 000 ordinary shares and the firm’s shares are trading at R7.25 each. The firm’s total assets amount to R50 000 000 and total liabilities to R20 000 000 each. Investment trust companies similar to this firm normally trade at a premium of 30% to net asset value (NAV). Calculate the NAV and determine whether to buy or sell the firm’s share.Select one:a.R6.50 buyb.R6.50 sellc.R5.00 buyd.R5.00 sell

Alpha Plc has monetary assets of £100,000 and monetary liabilities of £90,000. Based on Current Purchasing Power Accounting (CPPA) which of the following statements is correct. Prices have increased by 5%. Alpha Plc has monetary assets of £100,000 and monetary liabilities of £90,000. Based on Current Purchasing Power Accounting (CPPA) which of the following statements is correct. Prices have increased by 5%. Alpha is £5,000 better off Alpha is £5,000 worse off Alpha is £500 better off Alpha is £500 worse off

Question 3 – Sources of Finance (15 marks) Alpha Innovations is a technology startup company that designs and manufactures innovative medical devices. The company has been doing well since its inception and now, to meet increasing demand, Alpha Innovations needs to expand its production capacity. To finance this expansion, the company needs to raise additional capital. You, as the financial manager, are involved in evaluating the financial situation of the company and proposing a suitable financial strategy. The financial structure of Alpha Innovations is as follows: Equity capital: 1,000,000 shares that were initially issued at a price of $1 each, but which now are currently trading at $1.80. The expected return on equity capital is 10% per annum. Long term debt: $900,000 with an interest rate of 5% per annum. Short term debt: $600,000 with an interest rate of 5% per annum. The corporate tax rate is 30%. Using the WACC rate in (a), briefly explain what this rate represents and measures. If the company, as part of its expansion policy, is considering purchasing production equipment with an annual return of 10%, discuss how the WACC rate can inform this business decision. (4 marks, max 120 words)

Consider the single-index model. The alpha of a stock is 0%. The return on the market index is 16%. The risk-free rate of return is 5%. The stock earns a return that exceeds the risk-free rate by 11%, and there are no firm-specific events affecting the stock performance. The beta of the stock isQuestion 7Select one:a.1.20b.1.10c.1.00d.0.90

AssetsNon-current assetsProperty, Plant, and Equipment 6,430Intangible asset - software 2,250Investment in Batak at cost 5,820Investment - Others 400Total non-current assets 14,900Current assetsInventories 2,087.50Trade Receivables 1,300Cash at Bank 108,585Total current assets 111,972.50Total assets 126,872.50Equity & LiabilitiesEquityOrdinary shares of RM 1 each 5,860Share Premium 3,450Retained Profits 6,670Non-controlling Interest 472Total equity 16,452Non-current liabilities10% loan from Amboi 240Deferred tax 580Total non-current liabilities 820Current liabilitiesTrade payables 13,335Tax payable 425Bank Overdraft 65Dividend payable 1,190Total current liabilities 15,015Total equity & liabilities 126,872.50