Mac 2602 Tut Letter

MAC2602/101/3/2021
Tutorial letter 101/3/2021
Principles of strategy, risk and financial

management techniques
MAC2602
Semesters 1 & 2
Department of Management Accounting
IMPORTANT INFORMATION
Please register on myUnisa, activate your myLife e-mail address and make sure that you have
regular access to the myUnisa module website, MAC2602-21-S1 (first semester) and
MAC2602-21-S2 (second semester) as well as your group website. This tutorial letter contains
important information about your module.
MAC2602/101/3/2021
CONTENTS
Page
1 INTRODUCTION................................................................................................................................. 3
2 PURPOSE OF AND OUTCOMES FOR THE MODULE ...................................................................... 4
2.1 Purpose ........................................................................................................................................... 4
2.2 Outcomes ........................................................................................................................................ 4
3 LECTURERS AND CONTACT DETAILS ........................................................................................... 4
3.1 Lecturers ......................................................................................................................................... 4
3.2 Department...................................................................................................................................... 5
3.3 University......................................................................................................................................... 5
4 RESOURCES ..................................................................................................................................... 6
4.1 Prescribed books ............................................................................................................................. 6
4.2 Recommended books ...................................................................................................................... 6
4.3 Electronic Reserves (e-Reserves) ................................................................................................... 6
4.4 Library services and resources ........................................................................................................ 6
5 STUDENT SUPPORT SERVICES ...................................................................................................... 6
6 STUDY PLAN ..................................................................................................................................... 7
7 ASSESSMENTS ................................................................................................................................. 9
7.1 Assessment criteria ......................................................................................................................... 9
7.2 Assessment plan ........................................................................................................................... 10
7.3 Unique assignment numbers and due dates .................................................................................. 11
7.4 Submission of assignments ........................................................................................................... 11
7.5 Assignments .................................................................................................................................. 15
8 EXAMINATION ................................................................................................................................. 15
8.1 Examination period ........................................................................................................................ 15
8.2 Examination papers ....................................................................................................................... 16
8.3 The importance of a positive study method.................................................................................... 16
8.4 Tutorial letter with information on the examination ......................................................................... 16
9 FREQUENTLY ASKED QUESTIONS............................................................................................... 16
10 ASSIGNMENTS FOR 2021 .............................................................................................................. 18
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1 INTRODUCTION
Dear Student
Welcome to MAC2602
We are pleased to welcome you to this module and hope that you will find it both interesting and
rewarding. We shall do our best to make your study of this module fulfilling and successful. You
will be well on your way to success if you start studying early during the semester and resolve to
do the assignments in an accountable manner.
Because this is a blended module, you will need to use myUnisa to study and complete the
learning activities for this module. Visit the website for MAC2602 on myUnisa frequently. The
website for your module is MAC2602-21-S1 (first semester) and MAC2602-21-S2 (second
semester).
Tutorial matter
You will receive a number of tutorial letters during the semester. A tutorial letter is our way of
communicating with you about teaching, learning and assessment.
This document (TUT101/3/2021) contains important information about the scheme of work,
resources and assignments for this module. We urge you to read it carefully and to keep it at
hand when working through the study material, preparing the assignments and for the
examination and addressing questions to your lecturers.
Please read through this document as it gives you an idea of generally important information when
studying at a distance education institution and the College of Accounting Sciences.
You will find the assignments as well as instructions on the preparation and submission of the
assignments. It also provides all the information you need with regard to study material and other
resources and how to obtain it. Please study this information carefully and make sure that you
obtain all the necessary material (electronically available on myUnisa).
We have also included certain general and administrative information about this module. Please
work through this tutorial letter carefully.
Right from the start we would like to point out that you should read all the communications you
receive during the semester immediately and carefully, as they always contain important and,
sometimes, urgent information.
You will also receive the following study material electronically on myUnisa throughout the
duration of this semester:
• Study Guide 1 and Study Guide 2

• TUT102
• TUT201 (assignment 1 memorandum)
• TUT202 (assignment 2 memorandum)
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2 PURPOSE OF AND OUTCOMES FOR THE MODULE
2.1 Purpose
This module serves as an introduction to strategy, financial management, financing, managing
and investing of funds and risk management. This module is primarily intended for people who
are interested in qualifying as registered chartered accountants (SAICA) or management
accountants (CIMA). This module will enable students to develop the necessary competencies
prescribed by these two professional bodies.
Pre-requisite: FAC1502 & co-requisite: (either BNU1501 or QMI1500 or DSC1630)
The purpose of this module is to equip students with knowledge and understanding regarding
management accounting principles. Theories, methods, techniques and skills relevant to financial
management are introduced and applied in topics such as:
• Enterprise strategy and strategic financial management – creating an understanding of the
role of strategic management and factors influencing such strategy.
• Risk management – define and explain risk, risk frameworks, approaches and identification
of risk, risk assessment and reporting.
• Managing and investing of funds – analysis of financial information, analysing and
managing working capital, capital investments and capital budgeting techniques.
• Financial management, financing and the cost of capital – time value of money concepts
and solving time value of money problems, sources and forms of finance, theory of capital
structure and the calculation of the cost of capital.
2.2 Outcomes
After completing this module, students must be able to demonstrate:
• Knowledge and comprehension of the concepts relating to strategy, the stakeholders and
factors influencing such a strategy and how the organisation’s strategy is developed and
the ability to apply this knowledge in basic scenarios;
• Knowledge and comprehension of the role of the financial manager, the impact of the time
value of money, various sources of financing, the capital structure and be able to calculate
the weighted average cost of capital;
• An ability to analyse financial information in order to assist in the management of the long
and short term funds of an organisation and to apply selected capital budgeting techniques
to elementary investment decisions;
• An awareness of frameworks, procedures, processes and reporting mechanisms that are
part of the organisation’s effective risk management plan. Students must be able to identify
different categories and types of risks from an analysis of basic scenarios and suggest
elementary risk responses.
3 LECTURERS AND CONTACT DETAILS

3.1 Lecturers
The lecturers responsible for this module are as follows:
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Lecturer: L Jonker (Mr)

Building and office number: Nkoana Simon Radipere Building,
Room 1 - 51
Telephone number: 012 429 3704
Lecturer: J Bam (Mr)

Room 1 - 22
Lecturer: M Lötter (Mrs)

Room 1 - 24
E-mail: 1st Semester: MAC2602-21-S1@unisa.ac.za

2nd Semester: MAC2602-21-S2@unisa.ac.za
PLEASE NOTE: All students must take note that they must use their
myLife e-mail account to communicate with the university. This is
also stipulated in the Unisa rules for students.
Letters to lecturers should not be enclosed with or inserted into assignment document submitted
online.
3.2 Department
The Department of Management Accounting is situated in Pretoria at the main campus on the first
floor of the Nkoana Simon Radipere Building.
Enquiries that are not of an administrative nature but are about the content of this module
should be directed to the lecturers. Please have your study material available when you contact
your lecturers telephonically.
3.3 University
How to contact Unisa:
If you need to contact the University about matters not related to the content of this module, please
consult the Unisa website. The website contains information on how to contact the University (e.g.
to whom you can write for different enquiries, important telephone and fax numbers, addresses
and details of the times that certain facilities are open).
Or follow the instructions in the brochure Study@Unisa. Remember to have your student number
available whenever you contact the University. Whenever you write and send an e-mail to a
lecturer, please include your student number to enable the lecturer to help you more effectively.
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How to contact the College of Accounting Studies (CAS) Student Information Hub:
Tel no: 012 429 4211
Or
E-mail address: CASenquiries-Undergraduate@unisa.ac.za
4 RESOURCES
PLEASE NOTE: Your lecturers cannot help you with missing study material. Please
contact despatch@unisa.ac.za.
This module is an online module. All study material is therefore available in electronic format on
the myUnisa module webpage.
4.1 Prescribed books
There are no prescribed books for this module.
4.2 Recommended books
There are no recommended books for this module.
4.3 Electronic Reserves (e-Reserves)
There are no electronic reserves for this module.
4.4 Library services and resources
The Unisa Library offers a range of information services and resources:
• For detailed Library information, go to https://unisa.ac.za/library
• For research support and services (e.g. personal librarians and literature search services) go
to https://www.unisa.ac.za/sites/corporate/default/Library/Library-services/Research-support
• The Library has created numerous Library guides: https://libguides.unisa.ac.za
For brief information, go to: www.unisa.ac.za/brochures/studies.

For more detailed information, go to the Unisa website: http://www.unisa.ac.za/, click on Library
The Library has compiled numerous library guides including - how to contact the Library/find us
on social media/frequently asked questions - http://libguides.unisa.ac.za/ask
5 STUDENT SUPPORT SERVICES

The Study@Unisa website is available on myUnisa: www.unisa.ac.za/brochures/studies
This website has all the tips and information you need to succeed at Unisa.
Free computer and internet access

Unisa has entered into partnership with establishments (referred to as Telecentres) in various
locations across South Africa to enable you to have (as a Unisa student) free access to computers
and the Internet. This access enables you to conduct the following academic related activities:
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registration; online submission of assignments; engaging in e-tutoring activities and signature

courses; etc. Please note that any other activities outside of these are for your own account e.g.
printing, photocopying, etc. For more information on the Telecentre nearest to you, please visit
www.unisa.ac.za/telecentres.
Contact with fellow students - Study groups
It is advisable to have contact with fellow students. One way to do this is to form study groups.
Please follow the “discussion forum” on MyUnisa.
E- tutors
Unisa offers online tutorials (e-tutoring) to students registered for the module MAC2602. Once
you have been registered for the module, you will be allocated to a group of students with whom
you will be interacting during the tuition period as well as an e-tutor who will be your tutorial
facilitator. You will receive a sms informing you about your group, the name of your e-tutor and
instructions on how to log onto myUnisa in order to receive further information on the e-tutoring
process.
Online tutorials are conducted by qualified e-tutors who are appointed by Unisa and are offered
free of charge. All you need to be able to participate in e-tutoring is a computer with internet
connection. If you live close to a Unisa regional centre or a Telecentre contracted with Unisa,
please feel free to visit any of these to access the internet. It is the role of the e-tutor to guide you
through your study material during this interaction process. For you to get the most out of online
tutoring, you need to participate in the online discussions that the e-tutor will be facilitating.
6 STUDY PLAN
Read the information on general time management and planning skills contained on myUnisa:
www.unisa.ac.za/brochures/studies.
Plan your studies properly so as to achieve specific study goals at predetermined dates. This
avoids a haphazard approach to your studies and the use of ineffective study techniques.
Suggested study programme for 2021 First priority - Compulsory assignment 01 (to gain
admission to the examination and contributing 25% towards your year mark)
Study the following topics in the study material:

• Topic 1 – Development of the organisation’s strategy (Strategy and strategic
planning);
• Topic 2 – Introduction to financial management;

• Topic 3 – Time value of money;
• Topic 4 – Sources and forms of finance;
• Topic 5 – Capital structure and the cost of capital;
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• Topic 6 – Analysis of financial information and
• Topic 7 – Analysing and managing working capital.
Complete and submit the compulsory assignment number 01 (included in Addendum A for
semester 1 and Addendum C for semester 2), before the due date. This is a multiple choice
questions (MCQ) assignment.
Second Priority – Assignment 02 (contributing 75% towards your year mark)
• Topics 1 – 7 as for assignment 1, as well as;

• Topic 8 – Capital investments and capital budgeting techniques;
• Topic 9 – Risk theory and approaches to risk management;
• Topic 10 – Risk identification and documentation and
• Topic 11– Risk assessment, the management of risk and risk reporting.
Complete and submit assignment 02 (included in Addendum B for semester 1 and Addendum D
for semester 2), before the due date. This is a written assignment.
Important:
See guidelines on how to submit written assignments electronically via myUnisa under
point 7.4 of this tutorial letter.
Please note that it is the policy of this department not to mark the entire written
assignment. Depending on the length and difficulty of the assignment, ONLY ONE OR TWO
QUESTIONS OR PARTS OF QUESTIONS MAY BE MARKED.
To assist students, a study programme is provided. This programme indicates the dates on which
certain sections of the study material as well as assignments should be completed. The study
programme is based on the assumption that students devote more or less 4 hours of study to
each topic.
We are convinced that, if you adhere to this programme, you should have no difficulty in mastering
the subject. It is very important that the subject matter covered in the topics should be mastered
and not just skimmed. If you happen to register late or fall behind with this programme, extra effort
on your part will be necessary.
PLEASE NOTE: Learning only the solutions to the assignments off by heart is not enough to help
pass the exam. You also need to focus on the self-assessments provided in the study material.
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Module specific suggested study programme: Semester 1

Date Topics from the study material Assignment
due date
02/01/2021 Topic 1 – Development of the organisation’s strategy 01/03/2021

Topic 2 – Introduction to financial management
to Topic 3 – Time value of money
16/03/2021 Topic 4 – Sources and forms of finance
Topic 5 – Capital structure and the cost of capital
Topic 6 – Analysis of financial information
Topic 7 – Analysing and managing working capital
17/03/2021 Topic 8 – Capital investments and capital budgeting techniques 14/04/2021
Topic 9 – Risk theory and approaches to risk management
to
Topic 10 – Risk identification and documentation
13/04/2021
Topic 11– Risk assessment, the management of risk and risk
reporting
Suggested study programme: Semester 2

Date Topics from the study material Assignment
due date
08/07/2021 Topic 1 – Development of the organisation’s strategy 25/08/2021

Topic 2 – Introduction to financial management
to Topic 3 – Time value of money
24/08/2021 Topic 4 – Sources and forms of finance
Topic 5 – Capital structure and the cost of capital
Topic 6 – Analysis of financial information
Topic 7 – Analysing and managing working capital
26/08/2021 Topic 8 – Capital investments and capital budgeting techniques 15/09/2021
Topic 9 – Risk theory and approaches to risk management
to
Topic 10 – Risk identification and documentation
14/09/2021
Topic 11 – Risk assessment, the management of risk and risk
reporting
7 ASSESSMENTS
7.1 Assessment criteria
Formative assessment:
Assignments are seen as part of the learning material for this module. Before you complete an
assignment, work through the relevant topics in your study material. Pay specific attention to the
learning outcomes provided at the start of each topic and make sure that you are able to complete
the activities and self-assessment questions provided in each topic before attempting the
assignment. You are then actively engaged in learning. Assignments and tutorial letters form an
integral part of your tutorial matter and must be studied for examination purposes.
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Please note: Although students may work together when preparing assignments, each student
should write and submit his or her own individual assignment. In other words, you should submit
your own ideas in your own words. It is unacceptable for students to submit identical
assignments on the basis that they worked together. That is copying (a form of plagiarism).
None of these assignments will be marked and will be subjected to the rules and regulations of
the University.
Plagiarism: Plagiarism is the act of taking words, ideas and thoughts of others and passing
them off as your own. It is a form of theft which involves a number of dishonest academic
activities.
The Disciplinary Code for Students is available to all students at registration.
7.2 Assessment plan
Compulsory assignments
Submission of compulsory assignment 01 will earn you admission to the examination. The mark
you earn for compulsory assignment 01 will contribute 25% towards your year mark, and in turn
your year mark will count 20% towards your final mark.
Admission to the examination will therefore only be obtained by submitting compulsory

assignment 01 and the marks obtained for it will contribute towards your year mark.
Assignment 02 is a written assignment that contributes 75% towards your year mark.
You will undoubtedly realise the importance of commencing your study programme timeously so
that you can earn a good year mark, by submitting the two assignments.
Please refer to the Study@Unisa brochure on how to use and complete an on line assignment.
Assignment 01 will not be marked if it is not completed on a mark reading sheet. Assignment 02
for both semesters is a written assignment (details on how to complete and submit a written
assignment are given under point 7.4 of this tutorial letter).
PLEASE NOTE: Enquiries about assignments (e.g. whether or not the University has
received your assignment or the date on which an assignment was returned to you) must
be e-mailed to Assign@unisa.ac.za
Year mark:
The mark obtained for compulsory assignment 01 counts 5% and the mark obtained for
assignment 02 counts 15%, giving a year mark out of 20% towards the final mark.
How is it calculated?
Students require a combined final mark of 50% to pass a module. This final mark is calculated as
follows: 5% for assignment 01 and 15% for assignment 02 + 80% x mark obtained in the
examination.
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The division between the year mark and the examination mark.
If a student fails the examination with less than 40%, the year mark will not be applied in
calculating the final mark. Therefore, the student’s examination mark will be the final mark.
How will it work in practice?
The marks you obtain for the compulsory assignments 01 and 02 will be your year mark,
contributing towards a possible maximum of 20% of your final mark in the examination. A sub
minimum of 40% in the examination is however required, before the year mark will be taken into
account towards your final mark.
Your year mark will be taken into account as follows:

- mark (%) for compulsory assignment 01: 25% of year mark (5% of final mark)
- mark (%) for compulsory assignment 02: 75% of year mark (15% of final mark)
The year mark will contribute 20% towards your final mark. The mark you obtain in the
examination will count 80% and your year mark will count 20%. If you earn 75% for compulsory
assignment 01, 65% for compulsory assignment 02, and 48% for the examination, your final mark
will be 51,90% i.e. [(75% x 0,05) + (65% x 0,15)) + 38,40% (48% x 0,80)]
7.3 Unique assignment numbers and due dates
Assignments are numbered consecutively per module, starting from 01.
Your answers in respect of the assignments should be submitted online and not be addressed to
Unisa (or to the lecturer concerned) and should be submitted not later than the dates specified
below. (Refer to the study programme under point 6 above).
All assignments have their own unique assignment number.

Please indicate the provided unique number on your electronic mark reading sheet. Failure to do
so will result in no admission to the exam.
Assignment number Due date – Due date –

First Semester Second Semester
01 (Compulsory for admission to the examination
and part of year mark) 01/03/2021 25/08/2021
02 (Contributes to your year mark) 14/04/2021 15/09/2021
7.4 Submission of assignments

Students should submit written assignments and assignments completed on mark-reading sheets
electronically via myUnisa. Assignments may not be submitted by fax or e-mail.
Note that it will be wise to submit assignments electronically via myUnisa a day before the due
date or earlier, as the system is often overloaded on the due date. If the system gives an error
message, please wait a while and try again until your assignment is accepted.
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For detailed information on assignments, please refer to the Study@Unisa brochure.
To submit an assignment via myUnisa:
• Go to myUnisa.
• Log in with your student number and password.
• Select the module.
• Click on assignments in the menu on the left-hand side of the screen.
• Click on the assignment number you wish to submit.
• Follow the instructions
GUIDELINES ON HOW TO COMPLETE AND SUBMIT WRITTEN ASSIGNMENTS ONLINE VIA

OF MYUNISA
The only acceptable file format for written assignments is PDF (various PDF writers)
All written assignment MUST be uploaded in PDF format. Any other format is not compatible with
the onscreen marking tool and therefore it is VERY IMPORTANT that you upload your assignment
only in PDF.
DO NOT upload any written assignments in Microsoft Word, Microsoft Excel, Microsoft OneNote
or any other possible format available.
DO NOT upload pages as photo images.
DO NOT upload assignments as read-only or password protected pdf documents. The onscreen
marking tool will not be able to open these assignments for marking purposes and you will receive
0% for the assignment.
(i) Assignments completed manually:
Scan the assignment and save it on your computer as a pdf document before you upload it.
• Scan the documents as ONE single document and not all the pages individually.
• DO NOT scan the assignment upside down. Open the scanned document on your computer
and make sure it is not upside down.
Once you have scanned and saved it on your computer as a pdf document you will be able to
upload it on myUnisa.
(ii) Assignments completed in Excel:
• Make sure that you convert the file to a pdf format first and save it on your computer as a
pdf document.
• Once you have converted it CHECK that the questions follow in a logical pattern and that
your answers were not cut off in the middle of a sentence or calculation. This will happen if
your excel calculations did not fit onto one page. DO NOT upload any assignments where a
part of the question follows at the end of the pdf document. Therefore, please make sure
that all the pages are converted and that the last page do not only have part of a sentence
or calculation on it.
• Ensure that you formulas are typed out and that you did not use the formula bar to type in
the formula because then only the answer is displayed in the cell without the formula and
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the substitution of the figures used in the calculation. Marks are awarded for formulas and
the substitution of the correct figures into the formulas, not only for final answers. If your
answer is correct but it is not supported by a detailed formula and substitution of the correct
figures into the formula, you will not receive all the marks for that question.
• If your computer software cannot convert the assignment to a pdf document you will need to
print the “excel” assignment and scan it in. Then follow the procedures under “Assignments
completed manually”.
(iii) Assignments completed in Word:
• Make sure that you convert the file to a pdf format first and save the pdf file on your computer
as a pdf document.
• If your computer software cannot convert the assignment to a pdf document you will need to
print the “word” assignment and scan it in. Then follow the procedures under “Assignments
completed manually”.
IN ORDER TO SUBMIT WRITTEN ASSIGNMENTS ONLINE, YOU MUST:
• Create a separate subdirectory for MAC2602, Assignment 02 on your computer where you
can save all your assignment files for MAC2602.
• Submit this one single PDF file on myUnisa (*See instructions below).
DO NOT upload or submit any assignment other than the correct pdf assignment for the correct
module.
DO NOT submit the individual assignment pages on myUnisa. myUnisa will only accept the first
page uploaded and you will not be able to submit all the other pages of your assignment. You
may only upload a single PDF file on myUnisa.
* HOW TO SUBMIT ASSIGNMENT 02 (WRITTEN ASSIGNMENTS) VIA MYUNISA:
• Go to www.unisa.ac.za
• Go to myUnisa
• Enter your student number and password
• Select your module from the orange strip - MAC2602
• Click on “Assignments”
• Find the MAC2602 course code in the Course column
• Find the corresponding number of the assignment, i.e. 2 in the Ass.No. column
• Click on the Submit link in the Action column next to the assignment number
• Click on the Browse button next to File Name
• In the Choose File dialog box, select the file you want to upload e.g. MAC2602 Assignment
2.pdf, and then click OK
• Select the correct file format from the File Format drop-down list (pdf)
• Click on the Continue button.
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• Verify that you are uploading the correct file to MAC2602. If the wrong details, e.g. file name,
appear on the screen, click Back to restart the file upload process.
• Click on the Continue button to submit your assignment file. If you do not click Continue, no
submission action will take place. Large files will take longer to upload than small files.
Please be patient after you have clicked Continue.
• The assignment submission report is your proof that your assignment was submitted.
You must print this page for your record purposes.
• Click on the Return to Assignment List button to go back to the Assignment overview screen.
DO NOT wait until the due date to submit your assignment online via myUnisa. The
web server may experience high traffic volumes and it may result in late submission
of your assignment.
Please DO NOT click the ‘RESUBMIT’ button unless you want to submit the
assignment again from the beginning. When you click that button it immediately
cancels your previous submission.
YOU SHOULD ALWAYS TAKE COGNISANCE OF THE FOLLOWING GENERAL ADVICE:
• Keep an electronic backup of your assignment that you have submitted, as well as the
original assignment if you have done it manually.
• Keep your online submission receipt number or a print screen of your submission receipt as
proof of online submission. If you did not receive confirmation that your assignment was
submitted successfully then your assignment wasn’t submitted. Please submit your
assignment again until you receive confirmation that your assignment was submitted
successfully.
• DO NOT resubmit your assignment online on myUnisa. Make sure that you uploaded the
CORRECT assignment on the CORRECT module BEFORE you click the submit button the
first time. (This is similar to dropping a package in the post box – what is done is done.) Do
not call or e-mail the lecturers with requests to resubmit your assignment.
• DO NOT wait until the last day to submit your assignments online on myUnisa. The servers
can’t handle the volume of students and big files being uploaded at once and then you may
perhaps not be able to upload your assignment before the deadline.
• DO NOT email or fax your assignment to your lecturers or the Assignment Section at
Unisa. Only use one method (online via myUnisa) to hand in your assignment.
You are requested to carefully note the under mentioned requirements and suggestions and to
adhere strictly to them:
1. NO EXTENSION OF TIME WILL BE GIVEN FOR THE SUBMISSION OF ANY OF
THESE ASSIGNMENTS, AS SOLUTIONS WILL BE FORWARDED
AUTOMATICALLY TO ALL STUDENTS SHORTLY AFTER THE DUE DATES.
2. NO CORRESPONDENCE OR TELEPHONE CONVERSATION WILL BE CONDUCTED
REGARDING THE LATE SUBMISSION OF ASSIGNMENTS.
3. ASSIGNMENTS RECEIVED AFTER THE DUE DATE WILL NOT BE MARKED.
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7.5 Assignments
The assignments for 2021 are provided in the addendum as Addendum A to B for the first
semester and Addendum C to D for the second semester.
You will receive the correct answers automatically for multiple-choice questions – Assignment 01.
However, solutions to compulsory assignments will be put on the module webpage on myUnisa
for all students registered for this module by means of a tutorial letter, and not only to those
students who submitted the assignments.
As soon as you have accessed the solutions (Tutorial letter 201 for assignment 01 and Tutorial
letter 202 for assignment 2), please check your answers. The assignments and the solutions to
these assignments constitute an important part of your learning and should help you to be better
prepared for the next assignment and the examination.
Please note: Enquiries about assignments (e.g. whether or not the University has received your
assignment or the date on which an assignment was returned to you) must be addressed via e-
mail to (assign@unisa.ac.za). You might also find information on myUnisa. To go to the myUnisa
website, start at the main Unisa website, http://www.unisa.ac.za, and then click on the ‘login to
myUnisa’ link under the myUnisa heading on the screen. This should take you to the myUnisa
website. You can also go there directly by typing in http://my.unisa.ac.za.
Assignments for MAC2602 are supplied according to paragraph 10, the Addendum of this tutorial
letter. The assignments for 2021 are provided in Addendum A to B for the first semester and
Addendum C to D for the second semester. Assignments are also available on the myUnisa
module site.
8 EXAMINATION
To be admitted to the MAC2602 exam you need to submit the compulsory assignment 1 which
will also count 25% (maximum) towards your year mark and earn you entry to the exam. You also
need to submit assignment 2 (not compulsory) that will count 75% (maximum) towards your year
mark.
8.1 Examination period

This module is offered in a semester period of more or less fifteen weeks. This means that if you
are registered for the first semester, you will write the examination in May/June 2021 and the
supplementary examination will be written in October/November 2021. If you are registered for
the second semester you will write the examination in October/November 2021 and the
supplementary examination will be written in May/June 2022.
During the semester of the module, the Examination section will provide you with information
regarding the examination in general, online examination guidelines, examination dates and
examination times.
Date: May/June (First semester) and October/November (Second semester)

Marks: 100
Covers the whole syllabus (Topics 1 to 11)
Could be assessed using multiple-choice questions and/or written questions.
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Calculator policy:
Candidates may only use silent, electronic, battery driven pocket calculators subject to the
following conditions:
- Calculators must be cordless and may not have print-out facilities or alpha keys.
- Any financial calculator will be allowed.
- The calculator function on mobile telephones or any electronic device (i.e. laptops and/or
any Smartphone) may not be used.
8.2 Examination papers

Previous examination papers are available to students on myUnisa. However, NO
solutions/memorandums to previous examinations papers will be made available to students.
8.3 The importance of a positive study method

Examination statistics have proved that students who prepare their work thoroughly and who
complete all the assignments have a better chance of obtaining a pass in the examination than
those who are content with doing no more than the minimum work.
Only after you have acquired the necessary knowledge should you read through the assignment
for the first time, work out the solutions under examination conditions and submit your answers to
us so that they will reach the University on or before the due date of the assignment (not after the
due date).
The assignment should in effect constitute your first revision of the work which you have studied.
In other words, the assignment should not serve as a checklist of the work to be studied for the
completion of the assignment, but should, when the assignment is attempted, serve as a test of
the knowledge you have acquired by studying the work.
When you receive the solutions and compare the suggested solutions with your own, you are
provided with an opportunity of revising the work for a second time. If you persevere with such a
rigid program of study you will reap the benefit of sustained practice in answering questions and
will undoubtedly enjoy success in the examination.
8.4 Tutorial letter with information on the examination

To help you in your preparation for the examination, a tutorial letter (TL 103) will be made available
on the MAC2602 module page on myUnisa, that will explain the format of the examination paper.
9 FREQUENTLY ASKED QUESTIONS
Please refer to the Study@Unisa brochure as it contains an A-Z guide of the most relevant study
information.
16
MAC2602/101/3/2021
FAQ for MAC2602
What calculator can I use in the exam?

You may use any financial calculator, as long as it is a non-programmable calculator. Remember
that your answer using a calculator may differ from manual calculations. This is due to rounding.
In the study material we refer to the Sharp EL-748 and the HP10bII financial calculators. If you
use another make or model, you should study the manual thereof for instructions. We cannot
give instructions for all the different makes and models of financial calculators. (Also see the
calculator policy as stated under Examination above).
Do I have to know all the formulae in the study material or will they be given in the exam
paper?
No. They are not given in the exam paper. You will have to know them.
Are the factor tables A to D provided in the exams?

Yes. They are at the back of your exam paper.
What is important to study for the exam, are there sections that I can leave out?
No. All sections are examinable. Our examination covers the whole syllabus; therefore it is not
advisable to leave out any sections of the study material.
What tips can you give me for the exam?

We as lecturers are not allowed to give exam tips to students. It is unethical and not fair to other
students that have not spoken to us.
I have not received my study material yet?

You need to call the Despatch department, on +27 12 429 4950 or send a sms to 43579 or send
an e-mail to despatch@unisa.ac.za. You can also find your study material in electronic format
on myUnisa.
I have found a mistake in the study material?

Although we have put in our best effort to have our study material free of errors we will gladly
correct any that might have slipped through. Please contact us so that we can amend it.
What is expected from me in the answering of questions that require define, describe,
examine etc.?
Please refer back to the “Introduction and overview” section at the beginning of Study Guide 1.
Examples of some of the action words that you will come across in the examination and/or in
assignments together with their meanings are explained there.
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MAC2602/101/3/2021
10 ASSIGNMENTS FOR 2021
ADDENDUM A: COMPULSORY ASSIGNMENT 01/2021 FOR THE FIRST SEMESTER

ADDENDUM B: COMPULSORY ASSIGNMENT 02/2021 FOR THE FIRST SEMESTER
ADDENDUM C: COMPULSORY ASSIGNMENT 01/2021 FOR THE SECOND SEMESTER
ADDENDUM D: COMPULSORY ASSIGNMENT 02/2021 FOR THE SECOND SEMESTER
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MAC2602/101/3/2021
ADDENDUM A: COMPULSORY ASSIGNMENT 01/2021 FOR THE FIRST

SEMESTER
DUE DATE: 01 MARCH 2021
Before attempting this assignment, you should be fully conversant with the contents of topics 1 to
7.
The assignment contains 25 multiple choice questions which have to be answered via myUnisa.
Submission of this assignment is important to gain admission to the examination. Marks awarded
for this assignment contributes 25% towards your year mark (and your year mark, in turn,
contributes 20% towards your final mark).
MAC2602 - Unique number – 799319
19
MAC2602/101/3/2021
COMPULSORY ASSIGNMENT 01/2021 FOR THE FIRST SEMESTER
THIS ASSIGNMENT MUST BE COMPLETED THROUGH MYUNISA [DUE DATE 01 MARCH

2021]
MULTIPLE CHOICE QUESTIONS (50 marks) Unique number – 799319
Set your calculator on four decimal places for this

assignment.
1. Which of the following are considered to be elements of a strategy?
(a) The formulation of a strategy should display a broad conceptual knowledge of the
operating environment of the organisation.
(b) The activities that are chosen should fit one another in order to lead to success.
(c) The choice of activities should provide a competitive advantage.
(d) The strategies are based on the organisation’s core values.
(e) It necessitates that a decision also has to be made about which activities not to
choose. Trade-offs are made when choosing specific actions as opposed to other
actions
1) Statements (a), (d) and (c)

2) Statements (a), (c), (d) and (e)
3) Statements (b), (c), (d) and (e)
4) Statements (a), (b), (c), (d) and (e) (2)
2. Which one of the following statements is TRUE?
1) The government is a primary, internal stakeholder of a company and has a strong

influence on how the organisation is managed.
2) Pressure groups, such as workers unions, are secondary, external stakeholders that
act on behalf of people whose rights are adversely affected by a company.
3) Banks and lenders form part of the secondary, connected stakeholders of a company
and they are interested in the cash flows of that company.
4) Shareholders/owners are primary, internal stakeholders and their interests will mainly
be issues concerned with the growth and continued existence of the company. (2)
3. The development of an organisation’s strategy is influenced by different internal and external

environmental factors. Which one of the following combinations are factors that influence
the internal environment?
1) Corporate culture, technological environment, controls at organisation level and

political environment.
2) Social environment, economic environment, organisational leadership, HR policies and
corporate culture.
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3) HR policies, controls at organisation level, industrial relations and corporate culture.
4) Organisational leadership, political environment, competitive environment and social

environment. (2)
4. From the lists below, which combination of factors would serve as determinants of the
strength of a rival as per Porter’s five forces model?
1) Economies of scale, brand loyalty, cost advantage, ease of distribution, strong capital
base.
2) High retrenchment costs, potential upswing in economic conditions, substantial
investment in non-current assets.
3) Capacity of the industry, penalty clauses in supplier and rental contracts.
4) Absence of switching costs, demand conditions, amount of fixed costs, competitive
structure of the industry, global customers, extent of exit barriers, growth rate of
industry. (2)
5. Which handy tool reports performance measures across four dimensions, namely financial,
customer, internal business processes and learning and growth?
1) Value-based management (VBM)

2) SWOT analysis
3) SRI index
4) Balanced scorecard (2)
6. The functions of strategic financial management include amongst others:
a) The allocation of scarce capital resources among competing opportunities.

b) Identification of possible strategies capable of maximising the net present value of
the organisation.
c) The implementation and monitoring of the chosen strategy to achieve stated
objectives.
d) Compliance with laws, rules, codes and standards.
Which of the above statements refer to the functions of strategic financial management?
1) (a) and (b)

2) (b) and (c)
3) (a), (b) and (c)
4) (a), (b) and (d) (2)
7. When business people refer to the principle “cradle to the grave”, what business concept are
they referring to?
1) Porter’s five forces model

2) Life cycle stages of an organisation
3) SWOT analysis
4) Agency theory (2)
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8. R30 000 is invested for six years at 1% interest per quarter. Calculate the value of this
investment after six years, assuming that simple interest apply.
1) R35 400
2) R31 800
3) R51 600
4) R37 200 (2)
9. The present value of a future amount was calculated to be R207,54 at a discount rate of 5%
and the present value of the same future amount was calculated to be R183,30 at a discount
rate of 6%. Use extrapolation and calculate the discount rate that will achieve a present value
of R165,25.
[Round your final answer to two decimal places]
1) 5,57%
2) 6,57%
3) 6,75%
4) 5,50% (2)
10. A study friend of yours wants to know which interest rate factor to use in his calculation of
the present value of an annuity received from years 1 to 9 at an interest rate of 8%
1) Table B - 6,247
2) Table D - 12,488 3) Table A - 0,500
4) Table C - 1,990 (2)
11. Zenoplex (Proprietary) Limited has taken out a loan of R450 000. The loan agreement states
that the capital and interest of the loan will be repaid over the next four years, payable bi-
annually at an interest rate of 12% per annum. What will the half-yearly repayments on the
loan be?
1) R 31 500
2) R 72 117
3) R 63 000
4) R 132 853 (2)
12. Two types of market transactions can be distinguished, namely primary market transactions
and secondary market transactions. The following types of market transactions are given to
you.
Which one of the following alternatives is NOT a secondary type of market transaction?
1) Equity and bond securities are initially sold to investors. The money that flowed from
the investors to the organisation is invested by the organisation to exploit investment
opportunities.
2) This type of market makes the organisation’s securities more attractive to other
investors. This increases the price of the securities in the organisation.
3) Equity and debt securities can subsequently be sold by the holders of these securities
to other investors.
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4) The level of the organisation’s share price is set by this type of market transactions.
This will determine how much money can be raised by the future issue of shares. (2)
13. Covid-Detect Ltd had 10 300 000 issued shares. The company issued 1 150 000 new shares
to new investors during the current financial year. What will the shareholding of the original
shareholders be after the issue of the new shares to the new investors? [Round your final
answer to two decimal places.]
1) 91,10%
2) 111,00%
3) 100,00%
4) 89,96% (2)
The following information of Construct (Pty) Ltd is available and is applicable for questions
14 – 17. [Set your calculator on four decimal places for the calculations of this question.]
The current market price per share on 1 June 2021 is R14,82.

A dividend of R2,40 has been declared and paid during the previous financial year, ending
31 May 2021.
It is expected that dividends will grow at a constant rate of 5% per year for the foreseeable
future.
The market rate of return is 16%, the risk-free rate is 8,5% and the beta is 1,8.
The company holds R2 000 (face value) debentures which are redeemable after six years
at face value.
The annual interest payment on the debentures (coupon rate) is 12%.
The current market return for similar debentures with a life of six years is 11%. Assume
the current company tax rate is 28%
14. What will the current cost of equity for Construct (Pty) Ltd be? You have to use the capital
asset pricing module (CAPM). [Round your final answer to two decimal places.]
1) 20,00%
2) 22,00%
3) 29,50%
4) 37,30% (2)
15. What will the current cost of equity for Construct (Pty) Ltd be? You have to use the dividend
growth model. [Round your final answer to two decimal places.]
1) 16,95%
2) 21,19%
3) 22,00%
4) 37,30% (2)
16. What is the current market value of the debentures of Construct (Pty) Ltd? [Round your final
answer to the nearest rand.]
1) R 1 918
2) R 2 000
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MAC2602/101/3/2021
3) R 2 085
4) R 9 531 (2)
17. What will the effective after tax cost of debt (IRR/YTM) be? Calculate your answer by
mathematically computing the IRR by interpolating between 10% and 12%. The net present
value (NPV) at 10% was correctly calculated as R88 and at 12% at (R84).
1) 7,57%
2) 7,92%
3) 9,38%
4) 38,88% (2)
18. The following information of Lockdown Limited is given:

R
Equity 85 000 000
Debt 65 000 000
Total capital 150 000 000
What is the capital structure of Lockdown Limited? [Round your answer to two decimal
places.]
1) 43,33% : 56,67%
2) 56,67% : 43,33%
3) 1 : 76,47
4) 1,31 : 1 (2)
The following information of Dump-it (Pty) Ltd is applicable for questions 19 and 20:
Book value of long-term loan R1 150 000

Market value of debentures R 5 842 998
Market value of ordinary shares R15 150 000
Market interest rate of debentures (before tax) 11%
Market rate for similar long-term loans (before tax) 9%
Shareholders required rate of return 13%
19. What is the after tax cost for the debentures and the long-term loan respectively? [Round
your final answers to two decimal places.]
1) Debentures 11,00% and long-term loan 6,48%

2) Debentures 7,92,% and long-term loan 9,00%
3) Debentures 11,00% and long-term loan 9,00%
4) Debentures 7,92% and long-term loan 6,48% (2)
20. What is the weighted average cost of capital (WACC) for Dump-it (Pty) Ltd? Use the answer
obtained in question 19 for the calculations. [Round your final answers to the two decimal
places.]
1) 12,26%
2) 13,00%
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MAC2602/101/3/2021
3) 11,32%
4) 11,84% (2)
21. The following comparative statement of profit or loss and other comprehensive income of
MaskPro Limited is given to you:
2021 2020 2019

R’000 R’000 R’000
Revenue 5 550 4 552 3 605
Cost of sales (3 503) (1 999) (826)
Gross profit 2 047 2 553 2 779
Which one of the following represents the correct redrafted comparative statement of profit
or loss and other comprehensive income for Mask Pro Limited where the common size
statements technique is used? (2)
1) 2021 2020 2019

R’000 R’000 R’000
Revenue 154 126 100
Cost of sales (80) (34) 100
Gross profit 74 92 100
2) 2021 2020 2019

R’000 R’000 R’000
Revenue 100 100 100
Cost of sales (35) (20) (83)
3) 2021 2020 2019

R’000 R’000 R’000
Revenue 100 100 100
Cost of sales (63) (44) (23)
4) 2021 2020 2019

R’000 R’000 R’000
Revenue 271 178 130
Cost of sales (171) (78) (30)
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MAC2602/101/3/2021
The following information should be used to answer questions 22 and 23:
Globalvest Limited is an internationally listed company. It has an issued share capital of 5

million ordinary shares. Most of the shares are held by large financial institutions. The
current market price per share is R35.
The company currently has an overdraft of R90 million which is carrying an annual interest
rate of 15%. The company has no other borrowings.
Some line items from the statement of profit or loss and other comprehensive income for the
year ended 31 January 2021 of Globalvest Limited’s were as follows:
R’000
Operating profit 54 000
Interest paid 13 500
Profit before taxation 40 500
Taxation 6 000
Profit after taxation 34 500
Ordinary dividend paid 7 500
Retained profit for the year 27 000
22. What will the earnings per share be for Globalvest Limited as at 31 January 2021?
1) 19,71c
2) 540c
3) 690c
4) 1 080c (2)
23. What will the debt ratio for Globalvest Limited be as at 31 January 2021?
1) 51,43%
2) 1 : 0,34
3) 94,74%
4) 33,96% (2)
24. Shieldtech CC purchases an average of R500 000 of inventory from its supplier on an annual
basis. The credit terms of the supplier is 3/10 net 40 and is strictly enforced. The cost of
other short-term financing options (such as the bank overdraft) has an effective annual rate
of 15%.
What will the nominal annual cost of credit be for Shieldtech if they follow the policy of paying
for the purchases on the latest date allowed?
1) 37,63% - Rather make use of other financing option at an effective annual rate of
15%.
2) 37,63% - Make use of the policy of paying for purchases at the latest date allowed
rather than making use of other financing options.
3) 27,38% - Make use of the policy of paying for purchases at the latest date allowed
rather than making use of other financing options.
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4) 37,11% - Rather make use of other financing option at an effective annual rate of
15%. (2)
25. Covidsmart (Pty) Limited wants to know what the number of days credit taken by their
customers (receivable days) is. They asked you to assist them with the calculations. They
told you that the period of credit granted by their suppliers (payable days) is 51 days, the
cash conversion cycle is 152 days and the number of days inventory on hand (inventory
days) is 128 days.
What is the number of days credit taken by the customers (receivable days) of Covidsmart
(Pty) Limited?
1) 229 days
2) (27 days)
3) 27 days
4) 75 days (2)
TOTAL [50]
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MAC2602/101/3/2021
ADDENDUM B: COMPULSORY WRITTEN ASSIGNMENT 02/2021 FOR THE

FIRST SEMESTER
DUE DATE: 14 APRIL 2021 (No extension of time will be given for submission of this
assignment)
Before attempting this assignment, you should be fully conversant with the all the contents of
MAC2602.
Marks awarded for this assignment contributes 75% towards your year mark of 20% and 15%
towards your final mark.
This assignment contains longer type questions.
Please remember to also indicate the unique number on the document that you submit.
Important: See guidelines on how to submit written assignments electronically via

myUnisa under 7.3 of this Tutorial letter.
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MAC2602/101/3/2021
COMPULSORY ASSIGNMENT 02/2021 FOR THE FIRST SEMESTER
THIS ASSIGNMENT MUST BE COMPLETED IN FULL AND SUBMITTED ONLINE

(electronically) BEFORE OR ON THE DUE DATE OF 14 APRIL 2021.
LONGER TYPE QUESTIONS (100 marks) (120 minutes) Unique number – 656276

assignment.
QUESTION 1 (22 marks)
CoreOre Limited is financed as follows:

R’000
Non-distributable reserves 133 000
Long-term loans 98 500
200 million ordinary shares 200 000
Retained Income 9 555
Bonds 170 800
Their target capital structure is (D:E) 40:60.
The shares are currently trading at R320 per share. Investors expect earnings and dividends to
grow at a constant rate of 8% in the future. The previous dividend that was paid amounted to
R4,60 per share.
The cost of debt before tax is 13%. The risk-free rate is considered to be 8,5% and the market
return is 15%.
The current tax rate is 28% and their beta is 1,1.
REQUIRED:
a) Show the components of total equity financed amounts as well as the components of debt
financed amounts separately, then calculate the capital structure of CoreOre Limited
(based on book values). [Round your answer to the nearest full percentages.] (6)
b) CoreOre needs to raise R30 million for a project. Advise them on how they should finance
the new project keeping the target capital structure in mind.
(Show all the relevant calculations.) (4)
c) Calculate the cost of ordinary shares (cost of equity) by using the capital asset pricing model
(CAPM) approach. [Round your answer to two decimal places.] (4)
d) Calculate the WACC using the target capital structure. Use the cost of ordinary shares (cost
of equity, Ke) as calculated in (c). [Do not round the answer in (c) to the nearest full
percentage.] (8)
[22]
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MAC2602/101/3/2021
Green Tree (GT) Limited and Organic Products (OP) Limited are companies involved in the
production of health products. The financial statements of the 2 companies are shown below.
Organic Products
(OP)
Limited
Green Tree (GT) Limited
2021 2021
R’000 R’000
Revenue 548 200 515 960
Cost of sales (266 500) (225 620)
Gross profit 281 700 290 340
Operating costs (154 101) (156 630)
Net operating profit 127 599 133 710
Interest and other income 36 540 28 600
Earnings before interest and tax (EBIT) 164 139 162 310
Interest expense (15 669) (29 560)
Profit before tax 148 470 132 750
Income tax expense (44 541) (39 825)
Net profit 103 929 92 925
2021 2021
R'000 R'000
ASSETS
Total non-current assets 887 644 967 857
Inventories 55 602 45 200
Trade and other receivables 65 320 68 050
Cash and cash equivalents 15 362 10 220
TOTAL ASSETS 1023 928 1 091 327
EQUITY AND LIABILITIES

Total equity 789 425 804 127
Total non-current liabilities 189 203 231 000
Trade and other payables 45 300 56 200
TOTAL EQUITY AND LIABILITIES 1023 928 1091 327
• Both companies have an issued share capital of 10 million ordinary shares.

• The current market price per share for Green Tree (GT) Limited is R12 and R13,50 for Organic
Products (OP) Limited.
• The gearing ratio for Green Tree (GT) Limited is 22,90% and 26,32% for Organic Products
(OP) Limited.
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MAC2602/101/3/2021
• The non-current liabilities are consisting of long-term debt that is long-term interest bearing
debt with the current portions being nil.
REQUIRED:
(i) Show the formula and detailed calculations of the following ratios for 2021 for both
companies. [Use four decimals in your calculations and round your final answer to two
decimals.]
(ii) Briefly explain what the ratio means/indicates
(iii) Compare the ratios of the two companies, and
(iv) Discuss the indications and possible implications of the ratios.
a) Gross profit margin (5)

b) Current ratio (5)
c) Inventory turnover rate (5)
d) Interest cover ratio (5)
e) Debt to equity ratio (based on carrying values) (5)
f) Earnings per share (5)
g) Price/Earnings ratio (5)
[35]
The debtors ageing schedule of three businesses is supplied as at the end of April 2021. All
businesses have approximately the same (Rand) balance for accounts receivable.
Days
outstanding 0 - 15 16 - 30 31 - 60 60 + Total (R)
Lex 500 699 680 500 150 336 286 301 1 617 836
Rex 455 200 450 600 352 650 400 890 1 659 340
Tex 499 650 905 000 258 500 - 1 663 150
The credit terms offered to the customers of Lex are: 2,5/15 net 30
The credit terms offered to the customers of Rex are: 2/15 net 30. The
credit terms offered to the customers of Tex are: 4/30 net 60.
REQUIRED:
a) Calculate the percentage of the total for each period of days for all three businesses.
(4)
b) Analyse the three debtors ageing schedules and briefly explain what it indicates for each
of the businesses. (5)
c) Discuss four possible issues to be considered by each business by referring to the
four specific focus areas of the credit policy. (4)
[13]
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MAC2602/101/3/2021
Tucituc (Proprietary) Limited is a car manufacturing company that specialises in contemporary

battery operated cars. They realised that their current equipment does not comply with new safety
and security regulations. They have to purchase new equipment for their production process.
They have gathered information on two possible options, equipment Easy and equipment Peasy.
The following information regarding the equipment was gathered:
Equipment
Easy Peasy
R R
Cost price 160 000 195 000
Working capital required 15 000 15 000
Net operating income before tax* (year 1) 21 662 28 560
Realisable value at end of useful life-current 7 500 1 800
Useful life 4 years 4 years
Additional information:
1. Taxation:
• Normal income tax rate - 28%.
• Wear and tear allowances are calculated on the straight-line method at 20% per annum,
on the cost of the asset.
2. Depreciation is calculated on a straight-line basis over the useful life of the equipment.
3. *Depreciation is included in the net operating income before tax.
4. Management requires a 13% after-taxation return on all capital investments.
5. Assume that all cash flows occur at the end of each year, except the initial capital outlays,
which occur at the beginning of year 1.
6. The net present value (NPV) of Easy’s cash flows has already been correctly calculated as
R7 679 at 12% and -R4 085 at 15% and the IRR as 13,96% p.a.
REQUIRED:
a) Calculate the IRR of equipment Easy, using the information provided to calculate the
net present value at 12% and 15% respectively. Then interpolate between 12% and 15%.
[Work to three decimal places and round off all other calculations to the nearest rand.] (19)
b) Advise management which of equipment Easy or Peasy should be purchased and

motivate your recommendation. (1)
[20]
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MAC2602/101/3/2021
This question consists of five multiple-choice questions. Each question must be considered
independently, except where specific reference is made to information in another question. Each
question has only one correct answer, and the marks per question (5.1 – 5.5) are indicated in
brackets after each question.
Please answer the five questions by listing the question numbers below one another, from 5.1 –
5.5, with your corresponding answer next to it, for example:
5.1 (a)
5.2 (b)
The questions are as follows:
5.1 The following statements are definitions of different types of risks:
(1) The risk of not finding funding and for overtrading.

(2) The risk that can result in a financial loss for an organisation due to actions of
competitors or a change in the price of commodities and investments on stock
markets.
(3) The risk involving fluctuations in foreign currency transactions.
(4) The risk that is influenced by the organisation’s credit policy, proportion of credit
sales, credit terms offered and debt collection procedures.
(5) The risk that originate directly from the activities or non-activities in the normal
economy.
Which combination of the above statements refers to financial risk?

a) Statements (1), (2) and (5)
b) Statements (1), (3) and (4)
c) Statements (2), (3) and (4)
d) Statements (2), (3), (4) and (5) (2)
5.2 The following are descriptions of methods available to the risk management team or risk
management department to monitor the effectiveness of the risk management process.
Which ONE of the following is the correct description for scenario management?
a) Key trends are measured against a specific threshold and risks are highlighted when
the threshold is breached.
b) Losses are recorded and a loss report drafted to summarise loss events, values and
root causes. Risk responses are then implemented to prevent or reduce the likelihood
of similar events recurring.
c) It is a method to determine future risks, based on the views of experts.
d) It is an analysis of the organisation’s objectives and processes. A tool used to assess
management’s perception of perceived strengths, risks, weaknesses, within the
organisations processes and the adequacy and effectiveness of the controls designed
to mitigate the risks and achieve organisation objectives. (2)
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MAC2602/101/3/2021
5.3 This helps to identify possible legal exposure or contractual liabilities, indicate sources of
income and losses and/or identify values that are at risk. Which method to identify risk is
described above?
a) Results of quality control checks, inspection and audit reviews

b) Analysis of financial statements
c) Organisation charts and flow charts
d) Stakeholder consultation (2)
5.4 The process of selecting and implementing measures to reduce or mitigate risk to an
acceptable level is known as ______________?
a) Risk analysis
b) Risk monitoring
c) Risk response
d) Risk reporting (2)
5.5 Which ONE of the following statements does not relate to strategic risk?
a) Actions of the competitors.

b) Day-to-day operations of the organisation
c) The organisation’s position and relation with the external environment in the long-term.
d) Risk from the external environment that is not under the control of the organisation. (2)
TOTAL [100]
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MAC2602/101/3/2021
ADDENDUM C: COMPULSORY ASSIGNMENT 01/2021 FOR THE SECOND

SEMESTER
DUE DATE: 25 AUGUST 2021
Before attempting this assignment, you should be fully conversant with the contents of topics 1 to
7.
The assignment contains 25 multiple choice questions which have to be answered and submitted
via myUnisa.
Submission of this assignment is important to gain admission to the examination. Marks awarded
for this assignment contributes 25% towards your year mark (and your year mark, in turn,
contributes 20% towards your final mark).
35
MAC2602/101/3/2021
COMPULSORY ASSIGNMENT 01/2021 FOR THE SECOND SEMESTER
THIS ASSIGNMENT MUST BE COMPLETED AND SUBMITTED ONLINE THROUGH

MYUNISA [DUE DATE 25 AUGUST 2021]
MULTIPLE CHOICE QUESTIONS (50 marks) Unique number – 637771

assignment.
1. Which of the following statements describe a mission statement?
a) It defines the core purpose of an organisation, why an organisation exits.

b) It can contain figures, targets or time limits for achievement.
c) It is devised by the organisation’s top management.
d) It guides the priorities that direct an organisation’s behaviour.
1) Statements (a), (b) and (c)

2) All of the above statements
3) Statements (a), (c) and (d)
4) Statements (b), (c) and (d) (2)
2. Stakeholders are those persons and organisations that are affected by the activities of the
organisation and therefore have an interest in the strategy of an organisation. Which of the
following statements are TRUE regarding stakeholders?
a) The government’s sole interest as a stakeholder is the amount of tax the

organisation pays.
b) Banks are concerned with the security of loans and the compliance to the loan
agreements.
c) Large institutional shareholders have a high level of interest in an organisation.
d) Pressure groups can harm the public image of an organisation and even threaten
its existence.
e) Shareholders who own less than 50% of the shares in an organisation may even
decide to sell their shares to rival organisations, enabling the rival organisations to
take over the organisation.
f) An organisation’s customers are always key stakeholders.
1) Statements (a), (b) and (d)

2) Statements (b), (d) and (e)
3) Statements (b), (c), (d) and (f)
4) Statements (a), (b), (c), (d), (e) and (f) (2)
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MAC2602/101/3/2021
3. Which of the following statements are TRUE with regards to the purpose of doing a
competitor analysis?
a) Plan for diversification and expansion

b) Study the market, trends and patterns
c) Formulate a strategy
d) Study forthcoming trends in the industry
e) Increase the market share.
1) Statements (a), (c) and (e)

3) Statements (a), (c), (d), and (e)
4) Statements (a), (b), (c), (d), and (e) (2)
4. Which of the following statements relate to SWOT analysis?
a) A situational analysis entails the process of collecting and scrutinising information

as well as analysing the environment, external and internal that may have an
influence on the organisation.
b) This model identifies the core competencies of the organisation and builds on those
competencies.
c) It is one of the most useful instruments for strategic planning, because it views all
constructive and unconstructive internal and external factors that can have an effect
on the success of the organisation.
d) Managers should use this model to assist them in determining the competitive
structure of their industry before making strategic decisions.
1) Statements (a), (b) and (c)

3) Statements (b), (c) and (d)
4) Statements (a), (b), (c) and (d) (2)
5. A set of processes, customs, policies, laws and institutions affecting the way that a business
is managed, and includes the relationships among the many stakeholders involved with an
organisation and the goals of the business is known as______?
1) Memorandum of incorporation (MOI)

2) Corporate governance
3) Sustainability for businesses
4) Strategic financial management (2)
6. The functions of financial management include amongst others:
a) Direct involvement in the development of strategy.

b) Direct involvement in the implementation of strategy.
c) Managing business performance.
d) Managing business risk.
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MAC2602/101/3/2021
Which of the above alternatives refer to the functions of financial management?
1) Alternative (a) and (b)

2) Alternative (c) and (d)
3) Alternative (a), (b) and (d)
4) Alternative (a), (b), (c) and (d) (2)
7. Conflict can develop between the self-interest of the agents (managers) and their task to
maximise long-term wealth for the shareholders (owners). This is known as?
1) Limited liability theory

2) Life cycle concept.
3) Conflict theory
4) Agency theory (2)
8. A loan has a nominal interest rate of 14% per annum. Interest is compounded every three
months.
Which one of the following alternatives reflects the effective annual interest rate on the loan?
[Round the final interest rate to two decimal places.]
1) 14,75%
2) 14,67%
3) 13,80%
4) 13,32% (2)
9. You have calculated the present value of a future amount to be R207,54 by using a discount
rate of 5% and a present value of the same future amount to be R183,30 by using 6% as
the discount rate. By using interpolation calculate the discount rate that will achieve a present
value of R192,00.
[Round your final answer to two decimal places.]
1) 5,64%
2) 6,36%
3) 4,64%
4) 6,64% (2)
10. While sitting in the library a fellow student has asked you for help with the following question
that he is working on: A company takes out a bank loan of R110 000 at 8% per annum on
the 1st of January. The company will pay back the loan over 3 years in equal quarterly
payments. The student wants to know which interest factor he should use in order to
calculate the loan payments for each quarter.
Which table and factor will you advise him to use in his calculation.
1) Table B - 2,577
2) Table D - 3,2464
3) Table B - 10,575
4) Table A - 0,788 (2)
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MAC2602/101/3/2021
11. What are the quarterly payments for a loan of R1 540 000 bearing interest at 14% per annum,
repayable in equal quarterly payments over the next 10 years. [Allow for a slight rounding
difference and choose the alternative that is the closest to your answer.]
1) R 70 000
2) R 72 117
3) R185 160
4) R295 239 (2)
12. When a company applies to be listed on a stock exchange for the first time it is known
as______?
1) Strategic financial management

2) Close corporation
3) Take-over
4) Initial public offering (2)
13. The extent to which debt and redeemable preference shares are used in the capital structure
of an organisation is referred to as _______?
1) Financial leverage
2) Retained income
3) Weighted average cost of capital (WACC)
4) Capital asset pricing model (CAPM) (2)
14. The following information with regards to Oribi Limited is presented to you:
(I) (II)
Total assets R400m : Equity R300m Total assets R400m : Equity R200m
: Debt R100m : Debt R200m
Capital structure = D:E = 25:75 Capital structure = D:E = 50:50
R R
Earnings before interest (EBIT) 80,0m Earnings before interest (EBIT) 80,0m
Interest (10% x R100m) (10,0m)
Interest (10% x R200 m) (20,0m)
Profit before tax 70,0m
Profit before tax 60,0m
Income tax expense (19,6m) Income tax expense (16,8m)
Net profit 50,4m Net profit 43,2m
Return on assets (ROA) = x Return on assets (ROA) == x
= 20%
= 20%
Return on equity (ROE) = x x

Return on equity (ROE) =
= 16,8% = 21,6%
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MAC2602/101/3/2021
Which of the statements are TRUE with regards to the situations presented in table (I) and
table (II)?
a) The capital structure in table (I) is D:E = 50:50.

b) The difference between table (I) and table (II) is that in table II, 50% of the asset
funding is with debt whereas in table I, only 25% is debt funding.
c) The increase in the debt funding in table (II) resulted in an increase in the interest
expense that decreased the profit before tax as well as the income tax expense and
therefore the net profit also decreased.
d) The ROE in table (I) increased as a result of the decrease in the net profit and a
decrease in the equity amount.
e) From the above it can be said that the increase in the debt funding resulted in an
increase in the ROE, therefore the wealth of the equity holders increased.

2) Statements (a), (b) and (e)
4) Statements (a), (b), (c), (d) and (e) (2)
The following information is applicable for questions 15 – 19:
Super-Sanitation (Proprietary) Limited has the following funding structure:
7 500 bonds issued with a nominal value of R1 500 each and time to maturity of 15 years. It
pays an annual coupon rate of 11% per annum and the current market return on similar
bonds with a maturity date of 15 years is 12% per annum.
500 000 ordinary shares are in issue with a nominal value of R45 per share. The next
dividend payable will be R9 per share. It is expected that dividends will have a long-term
sustainable growth rate of 5%. The shares have a current market value of R80 per share.
The corporate tax rate is 28%
15. What is the cost of debt (bonds) for Super-Sanitation (Proprietary) Limited?
1) 8,64%
2) 3,36%
3) 11,72%
4) 12,00% (2)
16. What is the cost of equity for Super-Sanitation (Proprietary) Limited?
1) 11,00%
2) 11,24%
3) 16,25%
4) 16,81% (2)
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MAC2602/101/3/2021
17. What is the total market value of equity for Super-Sanitation (Proprietary) Limited?
1) R 600 000
2) R3 000 000
3) R22 500 000
4) R40 000 000 (2)
18. What is the total market value of debt (bonds) for Super-Sanitation (Proprietary) Limited?
1) R 11 250 000
2) R 10 485 000
3) R 93 711 428
4) R339 129 450 (2)
19. What is the weighted average cost of capital (WACC) for Super-Sanitation (Proprietary)
Limited?
1) 12,00%
2) 14,67%
3) 15,32%
4) 20,36% (2)
20. The major limitations of financial information are given below:
(a) The financial statements are to an extent, subjective or reflective of the judgement
of the accountants who prepared it. Although the IFRS helps to align the accounting
policies of an organisation, there are still certain industry specific transactions that
may have an effect on the way the financial information is accounted for, or technical
errors may occur.
(b) The financial information is the responsibility of the directors. Independent auditors
then state their opinion regarding the fairness of the financial performance, position
and cash flows in the financial statements. The audit guarantee total fairness and
an exact level of assurance that the figures presented are in accordance with IFRS.
(c) There is limited guidance on forward-looking information of an organisation.
Organisations can be sued if they do not achieve specific targets.
(d) Financial statements represent past results which will not necessarily predict what
the future results will be. The annual report also has a tendency not to reflect all the
failures and mistakes and can exaggerate achievements of management.
(e) In some instances, financial statements still reflect information on a historical cost
basis, and thus do not include the effect of inflation or changes in, for example, an
asset’s value.
Which statement/(s) listed above is FALSE?
1) Statements (a) and (c)

2) Statement (b)
3) Statements (c), (d) and (e)
4) Statement (e) (2)
41
MAC2602/101/3/2021
The following information is applicable for questions 21 - 22:
Some line items from the statement of profit or loss and other comprehensive income
for the year ended 31 March 2021 of Anti-Corrupt Limited:
R’000
Sales 150
Cost of sales 80
Other expenses 15
Depreciation 5
Total operating cost (100)
Earnings before interest and tax 50
Interest paid (2)
Profit before tax 48
Tax (16)
Net profit 32
Dividend (12)
Retained profit 20
Some line items from the statement of financial position as at 31 March 2021 of Anti-
Corrupt Limited:
R’000
ASSETS
Property, plant and equipment 90
Inventories 30
Trade and other receivables 15
Cash and cash equivalents 17
Total assets 152
EQUITY AND LIABILITIES

Share capital 64
Retained earnings 55
Interest bearing borrowings 20
Trade and other payables 13
Total equity and liabilities 152
21. What is the interest cover ratio for Anti-Corrupt Limited as at 31 March 2021?
1) 75 times
2) 50:2
3) 25%
4) 25 times (2)
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MAC2602/101/3/2021
22. What is the return on equity for Anti-Corrupt Limited as at 31 March 2021?
1) 18%
2) 29%
3) 23%
4) 29 times (2)
23. Q-Tiles Limited is preparing its cash flow budget for the year ending 30 June 2022. An
extract of its sales budget is as follows:
R
July 2021 50 000
August 2021 45 000
September 2021 60 000
October 2021 55 000
November 2021 48 000
December 2021 60 000
20% of the monthly sales are for cash.
The payment pattern of the credit sales is expected to be as follows:

• 50% in the month after the sale
• 25% in the month 2 months after the sale
• 20% in the month 3 months after the sale
• The remainder is expected to be bad debt.
What is the budgeted amount to be received from their customers for November 2021?
1) R208 000
2) R89 200
3) R61 100
4) R50 800 (2)
24. Which one of the following would NOT normally be considered a cost of holding inventory?
1) Inventory obsolescence
2) Loss of sales from being out of inventory
3) Loss of interest on cash invested in inventory
4) Insurance costs of inventory (2)
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MAC2602/101/3/2021
25. A retail organisation has an annual turnover of R75 million. The organisation earns a
constant mark-up of 20% on sales. All sales and purchases are on credit and are spread
evenly over the year. The following amounts are maintained at a constant level throughout
the year:
Inventories R13 million

Receivables R18 million
Payables R7 million
What is the organisation’s cash cycle? (Round your answer down to the nearest day.)
1) 50 days
2) 34 days
3) 124 days
4) 208 days (2)
TOTAL [50]
44
MAC2602/101/3/2021
ADDENDUM D: COMPULSORY WRITTEN ASSIGNMENT 02/2021 FOR THE

SECOND SEMESTER
DUE DATE: 15 SEPTEMBER 2021 (No extension of time will be given for submission of
this assignment)
Before attempting this assignment, you should be fully conversant with the all the contents of
MAC2602.
Marks awarded for this assignment contributes 75% towards your year mark and 15% towards
your final mark.
This assignment contains longer type questions.
Please remember to indicate the unique number on your assignment cover page.
Important: See guidelines on how to submit written assignments electronically via

myUnisa under 7.3 of this Tutorial letter.
45
MAC2602/101/3/2021
COMPULSORY ASSIGNMENT 02/2021 FOR THE SECOND SEMESTER
THIS ASSIGNMENT MUST BE COMPLETED IN FULL AND SUBMITTED ONLINE BEFORE

OR ON THE DUE DATE OF 15 SEPTEMBER 2021.
LONGER TYPE QUESTIONS (100 marks) (120 minutes) Unique number - 866949

assignment except where specifically indicated
otherwise.
The following information regarding SAA Engineering Limited’s current financial situation is
available:
Cost of equity 14%

Ordinary shares issued 700 000
Share price per share R35
EBIT R3 600 000
Market value of debt R2 500 000
Cost of debt 9% (pre-tax)
The company’s market is stable and they expect no growth. All earnings are paid out as dividends.
If they increase their debt so that their capital structure has 50% debt, the cost of equity will rise
to 17,3% and the interest rate on all debt will rise to 11,5% (pre-tax).
The current tax rate is 28%.
REQUIRED:
a) Calculate the total market value (market capitalisation) of SAA Engineering

Limited’s issued ordinary shares. (2)
b) Calculate the total market value of SAA Engineering Limited. (2)
c) Calculate the current weighted average cost of capital (WACC) of the company. (6)
d) Calculate the weighted average cost of capital of the company if they
increase their debt to 50% of their capital structure. (6)
e) Calculate the value of the 50% equity (Guidance: use the dividend growth model to
determine the market value of the shares, P0) (4)
[20]
The Prime Construction Company Limited is a public company and listed on the Johannesburg
Stock Exchange. Their statement of profit or loss and other comprehensive income for the year
ended 31 May 2021, as well as their statement of financial position as at 31 May 2021 are as
follows:
46
MAC2602/101/3/2021
2021
R’000
Revenue 356 005
Cost of sales (98 500)
Gross profit 257 505
Operating costs (66 203)
Distribution costs (9 500)
Administration expenses (6 690)
Other expenses (8 865)
Net operating profit 166 247
Interest and other income 15 662
Earnings before interest and tax (EBIT) 181 909
Interest expense (8 556)
Profit before tax 173 353
Income tax expense (52 006)
Net profit 121 347
2021
R'000
ASSETS
Non-current assets
Property, plant and equipment 958 900

Other investments 36 522
Total non-current assets 995 422
Current assets
Inventories (closing stock) 30 998
Trade and other receivables 15 440
Cash and cash equivalents 22 365
Total current assets 68 803
1 064 225
TOTAL ASSETS EQUITY AND LIABILITIES
Capital and reserves
Share capital 500 000
Retained earnings 289 425
Total equity 789 425
Non-current liabilities
Interest-bearing borrowings 131 850
Total non-current liabilities 131 850
Current liabilities
Trade and other payables 55 900
Current tax payable 23 500
Current provisions 63 550
Total current liabilities 142 950
TOTAL EQUITY AND LIABILITIES 1 064 225
47
MAC2602/101/3/2021
• The company has an issued share capital of 50 million ordinary shares.

• The current (2021) market price per share is R16.
• The dividend per share is 5 cents.
• The gross profit (GP) margin for 2021 is calculated as 70,55%
• Value added tax (VAT) is currently 15%.
• The amount of sales on credit is 60% of revenue.
• All purchases are on credit. Purchases must be calculated by using cost of sales, closing
stock (inventory) and opening stock (inventory).
• The opening balance of inventory for 2021 is R22 528 000.
• The industry norm for receivable days is 30 days.
• Assume that the market value of all liabilities (debt) equals the carrying value (book value)
thereof.
• Assume 365 days per year.
REQUIRED:
(i) Show the formula and detailed calculations of the following ratios for the year 2021.
(ii) Briefly explain what each ratio means/indicate, and
(iii) Discuss your findings after your calculation of each ratio. Is the ratio good or bad? Why do
you say this? Motivate your finding.
a) Operating profit margin (4)

b) Receivable days (5)
c) Payable days (6)
d) Inventory days (4)
e) Cash conversion cycle days (6)
f) Dividend pay-out ratio (4)
[29]
The management of Ceramics Pro Limited are in process of restructuring their business. They
consider their comparative financial statements, but they need to see a good overview of the
growth and decline of items through the years.
The following is an extract of the comparative statement of profit or loss and other comprehensive
income of Ceramics Pro Limited for five years:
2020 2019 2018 2017 2016
R'000 R'000 R'000 R'000 R'000
Revenue 15 223 12 225 13 556 9 986 7 056
Distribution costs (850) (989) (776) (678) (569)
Earnings before interest and tax

(EBIT) 5 333 3 765 4 155 2 314 1 415
48
MAC2602/101/3/2021
1. Ceramics Pro Limited is a company that sell and distribute roof tiles to building equipment
suppliers and has a few large clients.
2. Ceramics Pro Limited purchased and sold roof tiles with defects in 2016. These sales were
lost because the roof tiles had been returned to them. After that, they had to convince their
clients that they will do detailed inspections of the roof tiles before they deliver.
3. Tiles 4U Limited, a client of Ceramics Pro Limited, was liquidated in July 2019. This was due
to poor market conditions as well as fraudulent actions by their management.
4. Ceramics Pro Limited is currently under new management. They have been appointed in
2020.
REQUIRED:
a) Redraft the extract of the comparative statement of profit or loss and other comprehensive
income of Ceramics Pro Limited by using the following techniques: (14)
i) Indexed statements [Round your answer to the full percentage.]
ii) Common size statements [Round your answer to one decimal place.]
b) Use the strategic or non-financial information as provided in the additional information and
provide context to the financial analysis in (a). (6)
[20]
Concrete-Mix Limited is considering whether to continue with their production with its’ existing
cement mixing machine or to replace it with a new improved cement mixing machine which is
expected to speed up the mixing process.
Information regarding the existing mixing machine:
Cost price: R660 000 Current book value: R396 000
Current market value: R200 000 Initial useful life: 5
Current tax value: R220 000 Remaining years: 3
Realisable value at end of useful life: Nil Maximum annual production capacity: 5 600
batches
Information regarding the new improved mixing machine:
Cost to purchase new improved mixing machine R840 000

Useful life of new improved mixing machine Realisable 3 years
value at end of useful life:
Nil
Maximum annual production capacity 6 700 batches
49
MAC2602/101/3/2021
The following expected economic conditions and additional information will have to be considered:
Year
1 2 3
Estimated demand for products - batches 4 500 5 600 6 660

Selling price - per batch (R) 170 196 225
Variable manufacturing cost - per batch (R) 89 105 156
Fixed cost per annum - to be incurred excluding
22 000 13 000 20 000
depreciation (R)
1. The depreciation policy of the company is to depreciate assets on the straight line method
over the useful life, while the wear and tear policy of the South African Revenue Service
makes provision for assets to be written-off over a period of three years on the straight line
method, with no realisable value at the end of the period.
2. The company’s cost of capital is 14% per annum and the current rate of normal taxation is
28%.
3. All the estimated cash flows will arise at the end of the year to which they are applicable,
except the initial outlays which occur at the beginning of the year.
4. The net present value (NPV) of the new improved mixing machine was correctly calculated
by the company to be R46 809.
REQUIRED:
(a) Name two factors that can affect the capital budgeting decision. (1)
(b) Determine the net present value of the existing mixing machine by using the net present
value method. Advise whether the company should keep the existing mixing machine or
purchase the new improved mixing machine and motivate your recommendation.
[Work to the nearest rand, round off all your factors to three decimal places and show all
your calculations.] (20)
[21]
This question consists of five multiple-choice questions. Each question must be considered
independently, except where specific reference is made to information in another question. Each
question has only one correct answer, and the marks per question (5.1 – 5.5) are indicated in
brackets after each question.
Please answer the five questions by listing the question numbers below one another, from 5.1 –
5.5, with your corresponding answer next to it, for example:
5.1 (a)
5.2 (b)
50
MAC2602/101/3/2021
The questions are as follows:
5.1 Which ONE of the following alternatives is not a method to identify risk?
a) Brainstorming
b) Organisation charts and flow charts
c) WACC
d) SWOT-analysis (2)
5.2 Which ONE of the following alternatives is not one of the four risk objectives as defined by
COSO?
a) Financial objective
b) Strategic objective
c) Compliance objective
d) Reporting objective (2)
5.3 Which ONE of the alternatives is false regarding risk identification and the risk register?
a) Risk or event identification is the process to identify internal and external events, which
could affect the achievement of the organisation’s objectives.
b) Brainstorming, PESTEL analysis, Diagnostics and Benchmarking are a few of the
methods that can be used to identify risks.
c) The King III report and Code are used in South Africa to guide the process of
identification of risks in organisations.
d) The risk register, done by the risk management department, is a summary of identified
risks, which are listed, described and assessed/measured. (2)
5.4 Which ONE of the following standards or approaches relates to risk management
approaches?
a) KING III’s risk management model, Australia/New Zealand standard, CIMA’s risk
management cycle, IRM risk management standard.
b) USA standard, CIMA’s risk management cycle, IRM risk management standard,
COSO’s risk management model.
c) CIMA’s risk management cycle, COSO’s risk management model, Australia/New
Zealand standard, IRM risk management standard.
d) COSO’s risk management model, USA standard, CIMA’s risk management cycle,
ERM risk management standard. (2)
51
MAC2602/101/3/2021
5.5 The following are statements regarding factors that will influence risk:
(1) The non-compliance with regulations or internal procedures

(2) Research and development capacity with the ability to innovate
(3) Business interruptions, such as those due to power failures and no back-up power
generators
(4) The flexibility of production processes when product specifications alter
(5) Actions of competitors
(6) Significance of new technology
Indicate which combination of the above statements are factors influencing strategic risk.
a) Statements (2), (4), (5) and (6)
b) Statements (1), (2), (5) and (6)
c) Statements (2), (3), (4) and (5)
d) Statements (1), (3), (4), (5) and (6) (2)
TOTAL [100]
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Unisa 2021
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MAC2602/101/3/2021

Tutorial letter 101/3/2021

Principles of strategy, risk and financial

Department of Management Accounting

• Study Guide 1 and Study Guide 2

2 PURPOSE OF AND OUTCOMES FOR THE MODULE

Pre-requisite: FAC1502 & co-requisite: (either BNU1501 or QMI1500 or DSC1630)

3 LECTURERS AND CONTACT DETAILS

Lecturer: L Jonker (Mr)

Lecturer: J Bam (Mr)

Lecturer: M Lötter (Mrs)

E-mail: 1st Semester: MAC2602-21-S1@unisa.ac.za

How to contact Unisa:

For brief information, go to: www.unisa.ac.za/brochures/studies.

5 STUDENT SUPPORT SERVICES

Free computer and internet access

registration; online submission of assignments; engaging in e-tutoring activities and signature

Contact with fellow students - Study groups

Study the following topics in the study material:

• Topic 2 – Introduction to financial management;

Second Priority – Assignment 02 (contributing 75% towards your year mark)

• Topics 1 – 7 as for assignment 1, as well as;

Module specific suggested study programme: Semester 1

02/01/2021 Topic 1 – Development of the organisation’s strategy 01/03/2021

Suggested study programme: Semester 2

08/07/2021 Topic 1 – Development of the organisation’s strategy 25/08/2021

7.2 Assessment plan

Admission to the examination will therefore only be obtained by submitting compulsory

How will it work in practice?

Your year mark will be taken into account as follows:

All assignments have their own unique assignment number.

Assignment number Due date – Due date –

02 (Contributes to your year mark) 14/04/2021 15/09/2021

7.4 Submission of assignments

GUIDELINES ON HOW TO COMPLETE AND SUBMIT WRITTEN ASSIGNMENTS ONLINE VIA

DO NOT upload pages as photo images.

(ii) Assignments completed in Excel:

(iii) Assignments completed in Word:

IN ORDER TO SUBMIT WRITTEN ASSIGNMENTS ONLINE, YOU MUST:

* HOW TO SUBMIT ASSIGNMENT 02 (WRITTEN ASSIGNMENTS) VIA MYUNISA:

YOU SHOULD ALWAYS TAKE COGNISANCE OF THE FOLLOWING GENERAL ADVICE:

8.1 Examination period

Date: May/June (First semester) and October/November (Second semester)

8.2 Examination papers

8.3 The importance of a positive study method

8.4 Tutorial letter with information on the examination

9 FREQUENTLY ASKED QUESTIONS

FAQ for MAC2602

What calculator can I use in the exam?

Are the factor tables A to D provided in the exams?

What tips can you give me for the exam?

I have not received my study material yet?

I have found a mistake in the study material?

10 ASSIGNMENTS FOR 2021

ADDENDUM A: COMPULSORY ASSIGNMENT 01/2021 FOR THE FIRST SEMESTER

ADDENDUM A: COMPULSORY ASSIGNMENT 01/2021 FOR THE FIRST

DUE DATE: 01 MARCH 2021

MAC2602 - Unique number – 799319