FINANCIAL MANAGEMENT IV
FMA401V
Department of Finance,
Risk Management and Banking
IMPORTANT INFORMATION:
Please register as a user of myUnisa as soon as possible. It is free of charge. Visit
https://my.unisa.ac.za for details. At myUnisa you will be able to get in touch with fellow
students, submit your assignments, update your details, find self-assessment questions
and participate in discussion forums.
It is also important that you provide Unisa with your cellular number because important
announcements may be sent to you by SMS.
Please note that this module carries 24 credits and requires at least 240 hours of study,
including the time required to complete the assignments and the examination. Devote at
least 240 hours to this module in order to ensure your success.
Take note of rule 12 in the brochure my Registration @ Unisa. You must pass at least 4
modules of 12 credits each or 2 modules of 24 credits each per year. Students who do
not comply with this requirement will be excluded from further admission to the
university.
CONTENTS
Page
1 INTRODUCTION .......................................................................................................................... 3
1.1 Tutorial matter............................................................................................................................... 3
2 OUTCOMES FOR THE MODULE ................................................................................................ 3
3 LECTURER(S) AND CONTACT DETAILS................................................................................... 5
3.1 Lecturers....................................................................................................................................... 5
3.2 Department ................................................................................................................................... 5
3.3 University ...................................................................................................................................... 5
4 MODULE-RELATED RESOURCES ............................................................................................. 6
4.1 Prescribed book ............................................................................................................................ 6
4.2 Recommended books ................................................................................................................... 6
4.3 Electronic reserves (e-reserves) ................................................................................................... 6
5 ADDITIONAL RESOURCES ON myUnisa .................................................................................. 6
6 STUDENT SUPPORT SERVICES FOR THE MODULE ............................................................... 6
7 MODULE-SPECIFIC STUDY PLAN ............................................................................................. 6
8 ASSESSMENT ............................................................................................................................. 7
8.1 Assessment plan .......................................................................................................................... 7
8.2 General assignment numbers ....................................................................................................... 8
8.3 Unique assignment numbers ........................................................................................................ 8
8.4 Due dates for assignments ........................................................................................................... 8
8.5 Submission of assignments .......................................................................................................... 9
8.6 Assignments ............................................................................................................................... 10
9 EXAMINATION ........................................................................................................................... 34
10 FREQUENTLY ASKED QUESTIONS ........................................................................................ 34
11 CONCLUSION............................................................................................................................ 40
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1 INTRODUCTION
Dear Student
Welcome to the module for Financial Management IV (FMA401V).
On completion of this module you should be able to assess, calculate and interpret a range of
financial topics.
A tutorial letter that you will receive shortly after the closing date of each assignment,
which will contain the suggested solutions to the assignment questions
(2) explain the concept of time value of money and do calculations, including:
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(3) advise management on investment decisions, including investment in long-term
assets and capital projects. This includes:
credit policy
credit terms
collection policy
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(8) explain cost, break-even analysis and leverage in financial management and do
calculations, including:
costs
break-even point and break-even value
operating leverage
financial leverage
the combined leverage or the total leverage
3.2 Department
This module is offered by the Department of Finance, Risk Management and Banking (DFRB).
Please note that you may get in touch with fellow students, download study material, submit
assignments, change your address and/or examination venue, view your assignment marks,
download previous examination papers, find self-assessment questions (only if applicable) and
get in touch with your lecturer at https://my.unisa.ac.za
3.3 University
Administrative queries may be directed to the appropriate department as indicated in the
brochure my Registration @ Unisa. Examples of administrative queries are registration matters,
study material matters, account queries and graduation issues. Registration matters must be
directed to econ@unisa.ac.za
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4 MODULE-RELATED RESOURCES
4.1 Prescribed book
You must acquire the following prescribed book from one of the official Unisa bookstores (a list
of bookstores is available on myUnisa):
Marx, J & De Swardt, C. 2013. Financial Management in Southern Africa. 4th edition. South
Africa: Pearson Education.
4.2 Recommended books
None.
4.3 Electronic reserves (e-reserves)
None.
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8 ASSESSMENT
8.1 Assessment plan
Assignments are seen as part of the learning material for this module. When you do the
assignments, study the reading texts, consult other resources, discuss the work with fellow
students or tutors or do research, you are actively engaged in learning. Paying attention to the
assessment criteria for each assignment will help you to understand more clearly what is
required of you.
You may submit written assignments and assignments completed on mark-reading sheets
either by post or electronically via myUnisa. Assignments may not be submitted by fax or e-
mail. For detailed information and requirements as far as assignments are concerned, see the
brochure my Studies @ Unisa that you received with your study material.
Compulsory assignment
For this module, you must complete two compulsory assignments in the form of one multiple-
choice question assignment and one written assignment. Submission deadlines for each of the
assignments for this module are non-negotiable and you must submit these assignments if you
wish to gain entry to the examination. The assignments contribute to your year mark.
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Year marks
Your year mark, based on the mark obtained for the two compulsory assignments, contributes
20% towards your final mark, while your examination mark contributes 80%.
The combined weighted average of your year mark and examination mark must be 50% or
higher for you to pass the module. However, you must also obtain a minimum of 40% in the
examination, regardless of your year mark. If you obtain less than 40% in the examination, your
year mark will not be taken into account and you will fail.
For example:
Assignment 01 mark = 50% Assignment 02 mark = 90%. These marks each contribute 50%
towards the final 20% year mark.
70 x 20% of final = 14
For example:
Assume an examination mark of 55%
80% of the examination mark = 44%
You will need a final mark of at least 40% in order to qualify for a supplementary examination.
For general information and requirements as far as assignments are concerned, see the
brochure my Studies @ Unisa.
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Technical problems with the computer servers of myUnisa may prevent you from submitting
your assignment at the last minute.
If you are unable to submit your assignments via myUnisa and need to mail them to us in hard
copy format, please ensure that your assignments reach the Unisa main campus by the due
dates. Requests for extension of due dates for assignments will not be granted. These due
dates have been set to allow you sufficient time for the completion of other assignments and
your preparation for the examination.
Information about whether Unisa has received your assignment and the mark attained for an
assignment can be obtained from https://my.unisa.ac.za.
Go to myUnisa at https://my.unisa.ac.za
Log in with your student number and password.
Select the module.
Click on assignments in the left-hand menu.
Click on the assignment number you want to submit.
Follow the instructions on the screen.
You should only submit your assignment by means of a mark-reading sheet (for MCQs) or hard
copy (for essay-type questions) and mail it to Unisa if you do not have access to the internet. If
you are using a mark-reading sheet, remember to:
use an HB pencil.
indicate your student number and the above-mentioned unique number on the mark-
reading sheet.
follow the instructions for completing mark-reading sheets. Incomplete mark-reading
sheets will be returned to you unmarked.
submit the assignment in good time. It must reach the Unisa Main Campus by the
dates indicated below, otherwise it might not be in time to be marked by the
Assignment Section.
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8.6 Assignments
There are two compulsory assignments, one consisting of multiple-choice questions and one
written that you have to hand in and one self-assessment assignment consisting of essay-type
questions that you will not hand in.
Please note: For all calculative questions, you should choose the nearest correct option, as
there may be slight rounding differences between the answers. The use of financial calculators
and the financial tables will influence the rounding on your answers. For assignment two it is
important to show your calculations where applicable.
QUESTION 1
QUESTION 2
QUESTION 3
If the inflation rate increases, what would one expect to happen to interest rates?
1. decrease
2. double
3. increase
4. stay the same
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QUESTION 4
QUESTION 5
Which of the following types of business entities would be best positioned to obtain large
amounts of financing from public sources (i.e. not banks)?
1. sole proprietorship
2. public company
3. private company
4. partnership
QUESTION 6
Calculate the future value of R13 500 if it was saved in a bank account that pays 4% compound
interest per annum for a period of 8 years.
1. R 4 975
2. R 9 864
3. R 17 820
4. R 18 475
QUESTION 7
You want to open a savings account for a young relative so that he will have some money to
start out with when he turns 18.
At the moment he is 8 years old. You want him to receive R95 000 when he turns 18. If you
were to invest a lump sum in a savings account for your relative, how much would you need to
invest if the account pays 6% compound interest per annum?
1. R 33 283
2. R 53 048
3. R 56 230
4. R 170 131
QUESTION 8
You borrowed R5 000 from a friend six years ago. She asked for 7% simple interest per year on
the loan.
You now have to repay the loan with the interest, as agreed. How much interest will you pay?
1. R 2 100
2. R 2 504
3. R 7 100
4. R 7 504
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QUESTION 9
You are presented with two investment options, one where interest is compounded monthly and
the other where interest is compounded annually.
The first option (Option A) is over 2 years and pays 12% interest compounded monthly.
The second option (Option B) is over 2 years and pays 12% interest compounded annually.
Calculate the future value of both investments and choose the most correct option below if you
have R1500 000 to invest.
1. Option B should be chosen as it has a future value of R1881 600, which is higher
than Option A.
2. Option A should be chosen as it has a future value of R1904 602, which is higher
than Option B.
3. Option B should be chosen as it has a future value of R1881 600, which is lower than
Option A.
4. Both options are equal as the interest rate is the same.
QUESTION 10
If a person invested R200 000 ten years (all full years) ago and it is worth roughly R430 000
today, what was the growth rate on the investment?
(Choose the nearest option, rounded to the nearest full percentage. Assume annual
compounding.)
1. 1%
2. 8%
3. 9%
4. 12%
QUESTION 11
What will the future value of an annuity be if it has yearly payments of R10 000 for 8 years at an
interest rate of 5% compounded annually?
1. R 14 775
2. R 80 000
3. R 84 000
4. R 95 491
QUESTION 12
What is the present value of an annuity that has payments of R5 000 each year over a period of
10 years at an interest rate of 7% compounded annually?
1. R 2 542
2. R 35 118
3. R 50 000
4. R 69 082
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QUESTION 13
A share of Pigeon Soup Limited was given to you by a benefactor. You expect that you will be
able to sell it for R180 in three years time. It is expected that the share will pay dividends as
follows: In year 1, R10; year 2: R12; year 3: R15.
How much would the share be worth today if you were to buy it, assuming a required rate of
return of 10%? (Hint: Calculate the NPV of the cash flows.)
1. R 135,24
2. R 165,52
3. R 182,10
4. R 217,00
QUESTION 14
Which one of the following statements describes the process of capital budgeting best?
The company has a cost of capital of 5% and also uses this as its discount rate.
QUESTION 15
Calculate the net present value (NPV) for machine A and choose the nearest correct option.
1. R 42 886
2. R 175 000
3. R 242 886
4. R 542 886
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QUESTION 16
Calculate the net present value (NPV) for machine B and choose the nearest correct option.
1. R 61 792
2. R 200 000
3. R 211 792
4. R 661 792
QUESTION 17
Calculate the internal rate of return (IRR) for both machines and choose the correct option,
indicating the IRRs and which of the two options would be preferable based on IRR only.
QUESTION 18
Parrot Pies Limited is considering purchasing a new machine that fills pies with meat products.
The company believes that an acceptable payback period for any investment should be less
than five years.
The financial manager has estimated that the machine will generate the following cash inflows:
If the machine costs R150 000 today, what will the payback period for the machine be and
should the company buy the machine?
QUESTION 19
Project 1 Project 2
Year 0 (purchase price) R 500 000 R 600 000
Average yearly inflow (for 20 years) R 75 000 R 90 000
The company has a policy of only accepting projects with a payback period of less than 6 years.
Calculate the payback period for both projects and choose the correct option, indicating the
answers and indicating which project/s the company should choose.
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1. Project 1: 6,67 years; Project 2: 6,67 years. Both projects are acceptable.
2. Project 1: 6,67 years; Project 2: 6,67 years. None of the projects are acceptable.
3. Projects 1: 20 years; Project 2: 20 years. Both projects are acceptable.
4. Project 1: 20 years; Project 2: 20 years. None of the projects are acceptable.
The financial manager of the business expects the following sales over the next four months:
The financial manager has compiled the following information from past sales data:
15% of sales are done in cash and the remainder is sold on credit
Credit sales are collected as follows:
10% in the month of sale
20% one month after the month of sale
50% two months after the month of sale
20% three months after the month of sale
QUESTION 20
How much was the cash sales for the month of February 2015 only?
1. R 12 000
2. R 18 000
3. R 22 500
4. R 30 000
QUESTION 21
Calculate the credit sales from March 2015 that will be collected in May 2015.
1. R 27 000
2. R 30 600
3. R 76 500
4. R 90 000
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QUESTION 22
Calculate the credit sales from April 2015 that will be collected in May 2015.
1. R 30 000
2. R 34 000
3. R 44 000
4. R 85 000
QUESTION 23
1. R 36 000
2. R 187 000
3. R 204 000
4. R 240 000
QUESTION 24
Calculate the total cash collections from credit sales for the month of March 2015.
1. R 15 300
2. R 27 000
3. R 133 450
4. R 160 450
QUESTION 25
Calculate the total amount of cash collected in June 2015 (from cash and credit sales).
1. R 20 400
2. R 36 000
3. R 173 400
4. R 209 400
QUESTION 26
What percentage of cash from the credit sales of February 2015 will be collected in May 2015?
1. 0%
2. 15%
3. 20%
4. 50%
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Parrot Pies Limited has the following information pertaining to the compilation of their cash
budget. Use this information to answer questions 27 to 29.
QUESTION 27
What amount of cash will be paid in April for credit purchases made in March?
1. R 112 000
2. R 168 000
3. R 280 000
4. R 283 000
QUESTION 28
What amount of cash will be paid in April for purchases made in April?
1. R 76 000
2. R115 000
3. R 168 000
4. R 190 000
QUESTION 29
1. R 115 000
2. R 168 000
3. R 244 000
4. R 359 000
QUESTION 30
If a business has a cash balance of R200 000 on 1 January 2016, what will the closing balance
at the end of January 2016 be if the business had the following cash income and expenses
during the month?
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Total cash income R 500 000
Total cash expenses R 400 000
1. R 300 000
2. R 400 000
3. R 700 000
4. R1 100 000
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Answer the following questions and submit your assignment at https://my.unisa.ac.za or in hard
copy.
This is a written assignment comprising six questions that are in total worth 50 marks.
[Questions 1 to 3 revise the study units covered in Assignment 01. The reason for the
inclusion is so that feedback can be given on the topics, as Assignment 01 consists of
MCQs while the exam paper has to be answered in writing.]
QUESTION 1 (4,5)
Pigeon Proofing Limited sells pigeon deterrents. All of its sales are on credit.
Sales for the past three months were as follows:
It is expected that sales for the next three months will be as follows:
Required:
Calculate the cash receipts from credit sales for the months of July, August and September.
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QUESTION 2 (2)
QUESTION 3 (1,5)
You are faced with two investment options for a fixed deposit that you want to make over a term
of 8 years:
Which of the two investment options would pay more over time and why?
QUESTION 4 (11)
Francois expects some changes if he changes his credit standards and expects the situation
regarding his credit customers to change as follows:
Sales are expected to increase to R380 000 under the proposed standards.
Variable costs will still be 70% of sales.
The ACP should increase to 60 days.
Bad debts will increase to 6% of sales.
Required:
Calculate the effect this will have on earnings before interest and tax, and advise whether you
think it is a good idea or not. (Assume a 365-day year.)
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QUESTION 5 (18)
Donald started a new business last year. Currently he is working on estimates for the coming
year, taking into account what he has learned so far.
His business sells tractor tires to farmers and industrial clients. He is currently determining key
factors for his inventory management for the coming year.
He expects sales of R8 400 000 in the coming year. His tractor tires sell for R14 000 each and
the variable costs associated with each sale are expected to be R10 000.
Donald has added together the total cost of placing an order with a supplier and estimates the
cost to be R5 000 per order.
He has also looked at past invoices and delivery notes and determined that his supplier takes
15 days to deliver new stock after it was ordered.
As the tires are very big, it costs the business R500 to carry one unit of stock per year.
Donald has also estimated that his fixed costs for the coming year will be R1 950 000.
Calculate the degree of operating leverage for Donald's business using the information given.
(Use his expected sales point.)
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QUESTION 6 (13)
Required:
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ASSIGNMENT 03 SELF-ASSESSMENT
Question 1 (13)
1.1 Sit Tight Limited, a company that manufactures chairs, is considering the purchase of a
machine for R65 000.
After the 5-year period the machine is expected to have a scrap value of R5 000.
Required:
Advise Sit Tight Limited on whether or not it should purchase the machine.
Base your recommendation on the net present value (NPV) of the investment. (5)
1.2 R14 000 is invested in retail bonds at 15% per annum compound interest for 5 years.
Calculate the value of the investment at the end of year 5. (2)
1.3 Calculate the present value of R450 000 over 3 years, assuming a discount rate of 12%.
(2)
1.4 If you save R5 000 each year for the next 13 years in a savings account that pays 11%
interest per annum, how much would you have saved? (2)
1.5 Calculate the present value of R22 000 received annually at the end of every year for 8
successive years using a discount rate of 13%. (2)
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Question 2 (7)
2.1 Jersey Limited is a manufacturer of milk bottles. The following information is obtained from
its records.
Annual sales amount to 500 000 units. The purchasing price per unit is R3.
The carrying cost of inventory is equal to 20% of the purchase price of goods.
The ordering cost is R100 per order. Four days are required for delivery.
The desired safety stock for the firm is 4 000 units.
Required:
Calculate the economic order quantity (EOQ) for Jersey Limited . (4)
2.2 Determine the reorder point for Jersey Limited. Assume a 360-day year. (3)
Question 3 (5)
Sun Manufacturing Limited produces light bulbs. The firm's variable costs per light bulb amount
to R4 and total fixed costs for the firm are R1 600 000.
Sales of R6 000 000 are expected for the current year. The selling price per bulb is R15.
Required:
3.1 Calculate the expected marginal income for the year. (2)
3.2 What will the breakeven point (in units) of Sun Manufacturing Limited be for the year? (3)
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Question 4 (24)
Use the following information to answer questions 4.1 to 4.8.
The balance sheet and income statement of Elephant Limited are as follows:
Balance sheet as at 31 December 2012:
2012
R'000
ASSETS
Non-current assets
Property, plant and equipment 99 784
Current assets 224 586
Inventories 159 376
Trade receivables 30 358
Prepayments 1 952
Cash and cash equivalents 32 900
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Income statement for the year ended 31 December 2012
2012
R'000
Required:
Using the above information, calculate the following ratios for 2012:
Assume 365 days in a year throughout and round off to the nearest one decimal place.
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Question 5 (21 )
Seal Limited had sales of R100 000 in January, R80 000 in February and R90 000 in March.
Additional information:
The company had a cash balance of R20 000 on 1 April.
40% of the company's sales is cash.
Trade debtors (credit sales) are collected as follows:
50% of credit purchases are paid in the month of purchase and the balance is paid the following
month.
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Rent paid amounts to R5 000 per month.
Salaries and wages amount to R20 000 per month.
An interest payment of R5 000 is due in May.
Equipment valued at R7 500 will be purchased in cash, in April.
A trading fine of R10 000 is payable in June.
Required
Prepare the cash budget for Seal Limited for the months of April, May and June. (21)
DO NOT TURN OVER TO THE NEXT PAGE BEFORE YOU HAVE ATTEMPTED THE
EXERCISE. PLEASE TRY THE EXERCISE FIRST BEFORE YOU CHECK THE ANSWERS.
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SOLUTION TO ASSIGNMENT 03
The mark allocation has been included so that you can see how marks may typically be
allocated in a written assessment. The mark allocation included is for illustrative purposes and
may not have been worked out in exactly the same manner as it would be allocated for an
exam. Use this allocation to gauge your preparedness for the exam.
Question 1.1
Question 1.2
Calculator: Tables:
PV = R14 000 R14 000 x 2.011 R28 154
I = 15
N=5
so
FV = R28 159
Question 1.3
Calculator: Tables
FV= R450 000 R450 000 x 0.712 R320 400
N=3
I = 12
so
PV = R320 301,11
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Question 1.4
Calculator: Tables:
PMT = R5 000 R5 000 x 26.21 R131 050
N = 13
I = 11
FV = R131 058,19
Question 1.5
Calculator: Tables:
PMT = R22 000 R22 000 x 4.799 R105 578
N= 8
I= 13
so
PV = R105 572,95
Question 2.1
EOQ =
or
EOQ =
EOQ = = =
= 12 909, 95 12 910
Question 2.2
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Question 3.1
Question 3.2
Question 4.1
Question 4.2
Question 4.3
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Question 4.4
Question 4.5
Question 4.6
Question 4.7
Question 4.8
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Question 5
Credit sales
April May June
January 6000half
February 9600half 4800half
March 27000half 10800half 5400half
April 13200half 33000half 13200half
May 12000half 30000half
June 14400half
Total 55800 60600 63000
Credit purchases
April May June
March 30000half
April 25000half 25000half
May 20000half 20000half
June 20000half
Total 55000 45000 40000
Sales: cash
April May June
April R 110 000 44000
May R 100 000 40000
June R 120 000 48000
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9 EXAMINATION
Examination admission will be granted to all students who submit the compulsory assignment.
Students who do not submit the assignment will NOT be allowed to write the examination.
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The assignment marks do count towards the final marks, as explained in this tutorial
letter.
Who do I contact to find out if Unisa received my assignment(s) that I sent by mail?
Preferably, submit your assignments via myUnisa. If you do not have access to the
internet and have mailed your assignments to Unisa, SMS 43584 in order to determine if
Unisa received your assignment(s).
What do I do if my assignment goes missing in the mail?
Preferably, submit your assignments via myUnisa. Always make a copy of your
assignment and keep it in a safe place in case you need to submit a duplicate copy.
Can I submit my assignments by e-mail?
No, all assignments must either be submitted via myUnisa or posted. Assignments e-
mailed to lecturers will not be marked.
How long will I have to wait before I can expect my assignment(s) results?
We aim to have assignments marked within three weeks after each due date. Visit
https://my.unisa.ac.za to determine what mark you achieved. Allow an additional week or
two for the post office to deliver the results to your postal address. The assignment
results will be returned to the postal address that you indicated. Please do not call us to
make enquiries about your assignment earlier than four weeks after the due date has
elapsed.
Can I expect my assignment to be returned sooner if I submit it well before the due date?
The marking of assignments normally starts on the due dates indicated in this tutorial
letter. Assignments are not marked or returned prior to the due dates.
What mark did I obtain for my assignment(s)?
Register as a user of the myUnisa facility and visit https://my.unisa.ac.za to find out the
mark you received for your assignment(s).
3 EXAMINATION
What happens if I am unable to write the examination because of ill health, work
commitments or any other crisis?
Any requests for aegrotat examinations must be done in writing and directed to the Head:
Examinations, Box 392, Unisa, 0003 or exams@unisa.ac.za. A fee is payable for such
requests. The amount payable is determined by the Examination Section.
What happens if I fail any papers?
Students who fail any of the papers may be granted admission to write the
supplementary examination scheduled for the next examination, provided they have
achieved a final mark of at least 40%. Any enquiries in this regard must be directed to the
Head: Examinations, Box 392, Unisa, 0003 or exams@unisa.ac.za
What will happen if I do not write any of the papers during the supplementary
examination?
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In such a case you will have to obtain a registration form, complete it, pay the required
fees and register again.
What do I need to bring to the examination venue?
Bring your identity document (ID), student card, HB pencil, black pen, financial calculator,
ruler, eraser and pencil sharpener.
Will it be an open-book examination?
No.
Could you give me an idea of the scope of the examination paper?
The examination paper is based on your prescribed book and the learning outcomes
provided in your study guide. Each learning outcome statement and assessment criterion
may be used to set examination questions. Please do not call us to enquire about the
scope of the examination paper.
4 ALTERNATIVE ASSESSMENT: FI CONCESSIONS
Do I qualify for a FI concession?
Only if you fail the examination and FMA401V is one of the last two modules that you
need to complete your degree, will an alternative assessment method be considered.
You will be contacted by your lecturer or the Examination Section if you qualify for this
opportunity.
You will be given the opportunity to sit for the next formal, written examination at the next
exam opportunity or, if you require a later opportunity, your lecturer can give you a
portfolio of evidence to complete. Please note that due to the time frame in early January
before the supplementary examination, students who qualify for both the FI concession
and the supplementary examination are usually referred to the supplementary
examination. If you prefer to do the portfolio, you will need to contact your lecturer and
the Examination Section as soon as you are notified that you qualify for an FI
concession.
Will I still be able to get support from my lecturer regarding the content of the module?
Yes, your lecturer will be available to provide support to you regarding the content of the
module. Arrangements regarding support from your lecturer will be communicated to you
in an e-mail to your myLife e-mail account if you choose the portfolio of evidence.
Will the alternative assessment be easier than writing the exam?
Please note that this alternative assessment opportunity will not be an easier option. The
portfolio is a large assignment that you need to complete on your own and it entails a
large amount of work.
What if I fail my FI concession opportunity?
The policy on FI concessions states that students get a maximum of two exam
opportunities; this includes your normal exam sitting. In other words, this means that you
will write the main exam for the module, usually the October / November exam, then as a
FI concession student you get one more opportunity for assessment, by means of either
the supplementary examination or the portfolio. If you fail the supplementary examination
or portfolio, you need to register for the module again. Remember, the FI concessions
are not a guaranteed pass; in fact, many students are unsuccessful.
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5 RESULTS
I will be away when the examination results are due to be released. Could you please tell
me what mark I obtained for this paper?
The results should be available four weeks after completion of the examination period.
Please do not call the lecturers to request your results.
How will the results be announced?
The results are normally mailed to students. They are also published at myUnisa
https://my.unisa.ac.za and the MTN results facility, cellular number 083 1234.
6 STUDY GUIDE AND TUTORIAL LETTERS
I have lost my study guide and tutorial letters. Could you please mail or fax me a copy?
Please download a copy from myUnisa. Register as a user at https://my.unisa.ac.za. The
lecturers do not mail or fax copies of study guides to students. You may also order
replacement copies of study guides from Unisas Despatch Department. Please send an
e-mail to despatch@unisa.ac.za or a letter to The Head, Despatch, PO Box 392, Unisa,
0003.
7 CHANGES IN REGISTRATION DETAILS
What do I need to do if I want to add or cancel any of the modules?
Please update your details at myUnisa. Alternatively, send an e-mail, fax or letter to
indicate any changes that need to be made to your registration. Any such changes must
be completed two months before the examination. Please send an e-mail to
econ@unisa.ac.za. Alternatively, mail a letter addressed to The Registrar, Box 392,
Unisa, 0003. Please remember to quote your student number in all correspondence.
8 ACCOUNTS
What do I do if I do not agree with my account statement?
Please send a letter addressed to The Head, Student Accounts, Box 392, Unisa, 0003.
Alternatively, send an e-mail to finan@unisa.ac.za.
Please provide a copy of your receipt(s), deposit slips or electronic funds transfer (EFT)
as proof of payment as well as your student number.
Will the payment immediately appear on my account statement?
Your payment will only reflect on your next account statement.
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SECTION B: ACADEMIC MATTERS
1 THE PRESCRIBED BOOK
May I use any alternative books?
We strongly recommend the use of the prescribed book. You are welcome to consult
additional reading material, but the examination paper is based on the prescribed book.
Which specific pages do I need to study and which can I leave out?
The chapters that need to be studied are indicated in your study guide. The study guide
will indicate if any pages may be left out. You need to focus on achieving the learning
outcome statements.
Could you highlight the most important aspects of each chapter?
Some students are inclined to study only the most important aspects. This may prove to
be disastrous in the examination. All aspects of the prescribed chapters identified by
means of the learning outcome statements should be regarded as important for the
examination.
2. CALCULATORS
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FMA401V/101
Contact may be established with fellow students at the discussion forum at myUnisa. Due
to the constitutional right to privacy, we may not disclose the details of students to their
fellow students.
5 EXAMINATION
Are any previous examination papers available?
Previous examination papers are available on myUnisa, but no memoranda are made
available to students. Questions that appeared in previous papers will not necessarily be
repeated in subsequent examination papers, and students are warned not to rely on
previous examination papers in order to pass the module.
What will the format of the examination paper be?
The format of the examination paper will be confirmed in one of the tutorial letters
(normally Tutorial Letter 201) which will be sent to you during the semester.
Will the examination paper contain any theory questions or will there only be calculations
and interpretations?
Most of the questions involve theory, applications, calculations and interpretations.
Will all the equations be provided as an annexure to the examination paper?
The equations will not be provided as part of the examination paper. You must be able to
apply the equations in the exam. No marks are awarded for quoting equations in the
examination script.
If I study only the assignment questions, will I be adequately prepared for the
examination?
No. It is unlikely that you will be adequately prepared by studying only the assignment
questions. These questions represent a sample of the work and cannot be regarded as
being representative of all the study material.
Can you give me the scope of or any hints for the exam?
No hints are provided to students. Please do not call the lecturers about the scope of
or hints for the exam. Base your preparation for the examination on the learning
outcome statements.
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11 CONCLUSION
This tutorial letter provides you with the purpose and outcomes of the module, the contact
details of the lecturer(s), module-related resources and student support services.
It is important that you now prepare a study plan and devote 240 hours to this module in order
to achieve success in the examination.
Details of your assessment have been provided, including your assignments for the
semester/year.
Some frequently asked questions (FAQs) have been provided in order to save you a telephone
call or e-mail.
Best wishes
Your lecturers
UNISA 2014
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