CourseOutline HFMN331 1 Jul Dec2021 CW V1 05082021

BOSTON CITY CAMPUS
COURSE OUTLINE
Application of Financial Management
Techniques
(HFMN331-1)
Assessment Strategy (AS5)
July - December 2021
About the Institution

Boston City Campus (Pty) Ltd, Reg. No. 1996/013220/07, is registered with the Department of Higher
Education and Training (DHET), as a private higher education institution, No. 2003/HE07/002, in terms
of Section 54(1)(c) of the Higher Education Act, 1997 (Act No 101 of 1997), and Regulation 16(4)(a) of
the Regulations for the Registration of Private Higher Education Institutions, 2002.
Disclaimer
This Course Outline forms part of the ‘Boston Student Rules and Regulations’ and is accurate at the
time of publication. Boston City Campus (Pty) Ltd reserves the right to alter any of the content due to
changes in regulations, market requirements and other reasons.
Website: www.boston.co.za
1 CourseOutline-HFMN331-1-Jul-Dec2021-ES-V1-04082021
CONTENTS
1. COURSE INTRODUCTION 4
1.1 Overview
1.2 The Module
1.3 Notional Hours
1.4 Introduction to SAQA, QCs and the NQF
2. CRITICAL OUTCOMES OF THE LEARNING PROGRAMME 8
3. TEACHING, LEARNING AND ASSESSMENT 11

3.1 Learning Philosophy
3.2 Learning Methodology
3.3 Assessment Strategies and Types of Assessments
3.3.1 Self-Assessment and Recommended Reading
3.3.2 Report Writing
3.3.3 True-False Tests
3.3.4 Open-Book Test/Assignment
3.3.5 Multiple-Choice Question Examination
3.3.6 Student-Centred Interaction
3.3.7 Sample Assignment and Examination Papers and Memoranda
3.4 Feedback to Students
4. STUDENT ACCESS TO IT, LIBRARY AND OTHER RESOURCES 16

4.1 Distance Learners and Support Centres
4.2 Hours of Operation
4.3 Head Office Resource Centre
5. COMMUNICATION AND SUPPORT 18

5.1 Student Support
5.2 General and Administrative Support (Administrative – Not course related)
5.3 Academic Support (Course related – Not administrative)
5.4 Student Wellness
5.5 Summary of Contact Procedure
6. REQUIREMENTS TO COMPLETE THE MODULE SUCCESSFULLY 22

6.1 General
6.2 Comments on the Study Guide and/or Prescribed Textbook
6.3 Prescribed Course Material
6.4 Recommended Reading
6.5 Additional Teaching and Learning Activities
7. MODULE STRUCTURE AND ASSESSMENT SPECIFICS 25

7.1 Module Structure
7.2 Formative Assessments
7.3 Summative Assessments
8. GRADE REQUIREMENTS 27
8.1 General
8.2 Summative Assessment (Examination) Entry Requirements
8.3 Requirements for Promotion and Distinction
8.4 Supplementary Assessments
9. STUDY PROCEDURE AND GUIDELINES FOR COMPLETING ASSESSMENTS 28
10. PLAGIARISM 29
11. CONCLUSION 29
ANNEXURES:
A. EXPLANATION OF ACTION VERBS REQUIRED FOR COMPLETING ASSESSMENTS 30
B. PROPOSED STUDY PROGRAMME 31
C. BREAKDOWN OF PROPOSED COURSE MATERIAL 46
D. ACADEMIC CALENDAR FOR 2021 47
E. PLAGIARISM INFORMATION SHEET 55
F. FORMATIVE ASSESSMENT 1 60
G. SAMPLE FORMATIVE ASSESSMENT 1 73
H. SAMPLE FORMATIVE ASSESSMENT 1: MEMORANDUM 85
I. FORMATIVE ASSESSMENT 2 97
J. SUMMATIVE ASSESSMENT 2 113
K. SAMPLE SUMMATIVE ASSESSMENT 1 117
L. SAMPLE SUMMATIVE ASSESSMENT 1: MEMORANDUM 129
1. COURSE INTRODUCTION
1.1 Overview
Welcome to the Application of Financial Management Techniques (HFMN331-1) module. This

Course Outline is intended to assist students by providing a detailed support document to
help you with navigating this specific module.
Students are regarded as adult learners who are self-motivated and are treated as such.
Boston places students at the centre of the learning process, emphasising learning as an
“individual act”, thus students take full responsibility for their own learning. Educators will
facilitate learning to enable students to achieve the learning outcomes required in each
module.
The purpose of Application of Financial Management Techniques is to provide students

with knowledge on financial statement analysis, capital budgeting, further issues in capital
budgeting, capital budgeting risk analysis, working capital, current asset management and
short term financing, dividends and share buy-backs, mergers, acquisitions and corporate
restructuring, risk management and derivatives, international financial management,
business planning and financial modelling, corporate strategy and business models.
1.2 The Module
This module is part of a learning programme or qualification that is registered by the South
African Qualifications Authority (SAQA) on the Higher Education Qualifications Sub-
Framework (HEQSF), which is a sub-framework of the National Qualifications Framework
(NQF) and is structured as follows.
• Module name: Application of Financial Management

Techniques (HFMN331-1)
• Learning type: Core
• Course level: 7
• Module credits: 14
• Notional hours: 140
1.3 Notional Hours
The South African Qualifications Authority (SAQA) introduced the model of credits related to
notional hours as part of Outcomes-Based Education (OBE). Notional hours are defined as the
amount of time it takes the average student to achieve the learning outcomes as defined for
each course. The model of notional hours prescribes for this 14 credit module, the notional
hours will be 140.
Notional hours can consist of any combination of the following activities: reading, tasks or
self-evaluation exercises, listening or viewing of tapes and videos, attendance of tutorial or
lecture sessions, participation in discussions or online forums, undertaking experiential or
collaborative learning, completing assignments and research work, conducting interviews,
and preparing for and sitting of examinations. It is important to note that this model considers
workload from a student’s perspective and how much time it would take the average student
to comprehend the knowledge, skills, attitudes and values that are embodied in a particular
course (Kilfoil, 2009)1.
Within Annexure B of each Course Outline is a detailed Proposed Study Programme to assist
students with the planning of their studies according to a specific academic workload model,
to ensure success in meeting the required learning objectives and activities within the
required timelines as stipulated in the Academic Calendar (Annexure D).
1.4 Introduction to SAQA, QCs and the NQF
Who is the South African Qualifications Authority (SAQA)?
In terms of the NQF Act 67 of 2008, the South African Qualifications Authority (SAQA) is a
juristic person, given a legal personality by law. SAQA has a Board, whose members are
appointed by the Minister of Higher Education and Training. Identified stakeholders in
education, training and related support practices, nominate these members. SAQA's role is
to:
• Advance the objective and oversee the further development of the NQF;
• Coordinate with the Quality Councils, three sub-frameworks of the NQF; and
• Regulate professional bodies.
In terms of qualifications and professional bodies, SAQA must:

• Develop and implement policy and criteria, after consultation with the QCs, for the
development, registration and publication of qualifications and part-qualifications.
• Develop policy and criteria, after consultation with the QCs, for assessment,
recognition of prior learning and credit accumulation and transfer.
• Develop and implement policy and criteria for recognising a professional body and
registering a professional designation.
What are Quality Councils (QCs)?
Quality Councils (QCs) are sector-based structures responsible for the development and
quality assurance of qualifications on the NQF. There are three QCs for the three main sectors,
namely:
• General and Further Education and Training;
• Higher Education; and
• Trades and Occupations.
The three QCs are:

• UMALUSI, the QC for General and Further Education and Training, which encompasses
schools, and public and private TVET Colleges.
• The Council on Higher Education (CHE), the QC for Higher Education and concerns
itself with universities and private higher education institutions.
1
Kilfoil. W.R. 2009. Credits, Notional Hours and Workload. [Web Access] http://www.unisa.ac.za/ [Access Date:
27 June 2011].
• The Quality Council for Trades and Occupations (QCTO), the QC for occupations, which
deals with workplace learning and skills development. Such an example is a
learnership.
What is the National Qualifications Framework?
The National Qualifications Framework (NQF) is a comprehensive system for the classification,
registration, publication and articulation of quality assured national qualifications. The NQF is
the set of principles and guidelines that enables national recognition of acquired skills and
knowledge, thereby ensuring an integrated system that encourages life- long learning.
NQF Objectives
The objectives of the NQF, as outlined in the NQF Act 67 of 2008, are as follows:
• To create an integrated national framework for learning achievements;
• To facilitate access to, and mobility and progression within, education, training and
career paths;
• To enhance the quality of education and training;
• To accelerate the redress of past unfair discrimination in education, training and
employment opportunities; and
• To contribute to the full personal development of each citizen/learner and the socio-
economic development of the nation at large.
What Does the NQF Look Like?
The NQF is organised as a series of levels of learning achievement, arranged in ascending
order from one to ten. A statement of learning achievement, known as a level descriptor,
describes each level on the NQF. A level descriptor provides a broad indication of learning
achievements or outcomes that are appropriate to a qualification at that level. The content
of the level descriptors are developed and determined by SAQA, in agreement with the three
QCs.
2. CRITICAL OUTCOMES OF THE LEARNING PROGRAMME
The generic, cross-curricular outcomes of a programme supports all aspects of the learning
process, and a disciplinary specialist within Boston’s Faculty formulates them.
The table below provides information about the critical cross-field outcomes, an explanation
thereof, the associated assessment criteria, and their alignment with the appropriate NQF
standards, which inform all of the teaching and learning within this module.
This ensures that the intended purpose of the qualification is realised with the intended type
of graduate by providing:
• A well-rounded, broad education.
• Knowledge that emphasises the theory and methodology of disciplines in the
professional context.
• Principles and theory that are emphasised as a basis for entry into professional
practice, in a wide career range.
NQF LEVEL DESCRIPTORS:
Description NQF 5 NQF 6 NQF 7 NQF 8

SCOPE OF KNOWLEDGE Demonstrate an informed Detailed knowledge of main areas in Integrated knowledge of the central areas Demonstrate knowledge of and
understanding of the core areas of one or more fields. An of one or more fields. The ability to apply engagement in an area at the forefront of
one or more fields… an informed understanding and the ability to and evaluate the key terms, concepts, a field. An understanding of the theories,
understanding of the key terms, apply the key terms, concepts, facts, facts, principles, rules and theories of that research methodologies, methods and
concepts, facts, general principles, principles, rules and theories to field. techniques relevant to the field, discipline
rules and theories of that field. unfamiliar but relevant contexts. or practice. Understand how to apply such
knowledge in a particular context.
KNOWLEDGE LITERACY Demonstrate awareness of how Demonstrate an understanding of Demonstrate an understanding of Demonstrate the ability to interrogate
knowledge or a knowledge system different forms of knowledge, knowledge as contested and the ability to multiple sources of knowledge in an area
develops and evolves within the schools of thought and forms of evaluate types of knowledge and of specialisation and to evaluate
area of study or operation explanation within a specific study explanations typical within the area of knowledge and processes of knowledge
area, and an awareness of study. production.
knowledge production processes.
METHOD AND PROCEDURE Demonstrate the ability to select Demonstrate an ability to evaluate, Understanding of range of methods of Understanding of the complexities and
and apply standard methods, select and apply appropriate enquiry in a field, and their suitability to uncertainties of selecting, applying or
procedures and techniques to a methods, procedures and specific investigations, and the ability to transferring appropriate standard
particular field, and to plan and techniques in investigation or select and apply a range of methods to procedures, processes or techniques to
manage such implementation. application of processes within a resolve problems or introduce change unfamiliar problems in a specialised field.
defined context. within a practice.
PROBLEM SOLVING Ability to identify, evaluate and Ability to identify, analyse and solve Ability to identify, analyse, evaluate, Ability to use a range of specialised skills
solve defined, routine and new problems in unfamiliar contexts, critically reflect on and address complex to identify, analyse and address complex
problems within a familiar context. gathering evidence and applying problems, applying evidence-based or abstract problems drawing
Ability to apply solutions based on solutions based on evidence. solutions and theory-driven arguments. systematically on the body of knowledge
relevant evidence, demonstrating and methods appropriate to a field.
an understanding of the
consequences.
ETHICS AND PROFESSIONAL PRACTICE Ability to take account of, and act Demonstrate an understanding of Ability to take decisions and act ethically Ability to identify and address ethical
in accordance with, prescribed the ethical implications of decisions and professionally and the ability to justify issues based on critical reflection on the
organisational and professional and actions within an organizational those decisions drawing on appropriate suitability of different ethical value
ethical codes of conduct. or professional context. ethical values. systems to specific contexts.
ACCESSING, PROCESSING, MANAGING Ability to gather information from Ability to evaluate different sources Ability to develop appropriate processes of Ability to critically review information
INFORMATION a range of sources and to select of information and to select information gathering for a given context of gathering, synthesis of data, evaluation
information appropriate for the information appropriate for the task use, and the ability to independently and management processes in specialised
task. and to apply well-developed validate the sources of information and contexts in order to develop creative
processes of analysis, synthesis and evaluate and manage information. responses to problems and issues.
evaluation of that information.
PRODUCING AND COMMUNICATING Ability to communicate Ability to present and communicate Ability to develop and communicate his or Ability to present and communicate
INFORMATION information reliably, accurately complex information reliably and her ideas and opinions in well- formed academic, professional or occupational
and coherently, using conventions coherently using appropriate arguments, using appropriate academic, ideas and texts effectively to a range of
appropriate to the context… an academic and professional or professional and occupational discourse. audiences, offering creative insights,
understanding of and respect for occupational conventions. rigorous interpretations and solutions to
the conventions around problems and issues appropriate to the
intellectual property, copyright context.
and plagiarism
CONTEXT AND SYSTEMS Ability to operate in a range of Ability to make decisions and act Ability to manage processes in unfamiliar Ability to operate effectively within a system,
familiar and new contexts, appropriately in familiar and new and variable contexts, recognising that or manage a system based on an
demonstrating an understanding of contexts, demonstrating an problem solving is context and system understanding of the roles and
different systems, their parts and understanding of the relationship bound relationships between elements within
the relationships between these between systems and how one the system.
parts. impacts on another.
MANAGEMENT OF LEARNING Ability to evaluate his or her Ability to evaluate performance Ability to identify, evaluate and address his Ability to apply, in a self-critical manner,
performance and the performance against given criteria, and or her learning needs in a self-directed learning strategies which effectively
of others; and to take appropriate accurately identify and address his manner and to facilitate a collaborative address his or her professional and
actions where necessary and to or her task- specific learning needs learning process. ongoing learning needs and the
take responsibility for his learning in a given context. And to provide professional and ongoing learning needs
within a structured learning support for others where of others.
process. appropriate.
ACCOUNTABILITY Ability to take account for his or Ability to work effectively in a team Ability to take full responsibility for his or Ability to take full responsibility for his or
her actions, to work effectively or group and take responsibility for her work, decision making and use of her work, decision-making and use of
with and respect others and to his or her decisions and the actions resources… and limited accountability for resources, and full accountability for the
take supervisory responsibility in a of others in well-defined contexts. the decisions of others in varied or ill- decisions and actions of others where
well- defined context. defined contexts. appropriate.
3. TEACHING, LEARNING AND ASSESSMENT
3.1 Learning Philosophy
As an accredited and registered private higher education institution, Boston is committed to

the implementation of Outcomes-Based Education (OBE), and as such the learning and
assessment approach and methodology that facilitate the appropriate execution thereof.
Boston views learning as a complex interaction between students’ personal purpose, which
is to improve their knowledge and ability, their prior knowledge and disposition, and
requirements for specific subject matter enquiry. Therefore, Boston subscribes to an
approach that learning:
• Should be action-orientated and communicative

• Is not transferred but constructed
• Is the making of meaning and could be propositional or presentational
• Is a process shaped by learning perspectives and learning schemes
• Occurs through refinement and elaboration
• Should be authentic and true, instrumental, communicative and reflective
• Should be active and based on a reflective decision to act
• Should result in an acquisition of instrumental and communicative competence via
critical reflection and self-reflection on assumptions.
3.2 Learning Methodology
Teaching and learning at Boston is integrated into every aspect of the development,
evaluation and delivery of each module and learning programme.
Boston has moved from the traditional presentation of learning support materials i.e.
textbook and study handbook based only, which has a traditional instructor-centred
curriculum, to a student-centred approach that mandates the faculty and academic support
staff to:
• Encourage students to develop the ability to think critically and solve problems
creatively.
• Promote an understanding of the relevance of the intended learning outcomes.
• Encourage students to develop enquiring minds and to investigate relevant topics
further in order to enrich their learning experiences.
• Provide students with the opportunity to experience the demands of the working
world.
• Promote a positive and supportive learning environment where students, faculty and
support staff work towards common objectives.
• Encourage students to grasp the practical application behind the theory.
• Promote a sense of responsibility for learning and assessment.
Teaching at Boston consists of:
• Faculty and information, communication and technology (ICT) equipment
• Describing and unpacking of specific knowledge components
• Discussing examples within industry and/or the workplace
• Relating these with the purpose and objectives of the module and learning
programme
• Interaction with students
• Outcomes-based learning materials, filmed lectures on TMS2, online assessments,
course outlines, prescribed textbooks, study guides/workbooks, study plans and
sample assessments and memoranda
• Evaluation and feedback.
Learning consists of:

• Student access to information, communication and technology (ICT)
equipment/programme
• Readings, discussions and participation sessions of knowledge components and
practical application thereof
• Independent study and investigation into knowledge and practical components
• Interaction with faculty
• Experiential, peer and collaborative learning, self-evaluation exercises and learning
activities
• Outcomes-based learning materials, prescribed and recommended readings,
assessments and feedback.
3.3 Assessment Strategies and Types of Assessments
The following are examples of assessment strategies used:
Assessment Strategy C (ASC): Formative assessments (FA1 and FA2), also known as quizzes,
will count fifty percent (50%) – twenty five percent (25%) each - towards the overall mark. A
summative assessment in the form of a final exam (SA1), will count fifty percent (50%)
towards the overall mark.
Assessment Strategy 2 (AS2): The formative assessment (FA1), also known as an assignment
or test, will count fifty percent (50%) towards the overall mark. The summative assessment
in the form of a final exam or capstone project (SA1), will count fifty percent (50%).
Assessment Strategy 3 (AS3): The formative assessment (FA1), also known as an assignment
or test, will count forty percent (40%) towards the overall mark. Summative assessments in
the form of a final exam or capstone project (SA1), will count fifty percent (50%), and a
research or reflective essay (SA2) will count ten percent (10%) towards the overall mark.
Assessment Strategy 4 (AS4): Formative assessments (FA1 and FA2), also known as
assignments or tests, will count forty percent (40%) - twenty percent (20%) each - towards
the overall mark. Summative assessments in the form of a final exam or capstone project
2
TMS [Training/Telematic Management System incorporating a Learning Management System (LMS)]
(SA1), will count fifty percent (50%), and a research or reflective essay (SA2) will count ten
percent (10%) towards the overall mark.
Assessment Strategy 5 (AS5): Formative assessments (FA1 and FA2), also known as
assignments or tests, will count thirty percent (30%) - fifteen percent (15%) each - towards
the overall mark. Summative assessments in the form of a final exam or capstone project
(SA1), will count sixty percent (60%), and a research or reflective essay (SA2) will count ten
percent (10%) towards the overall mark.
Assessment Strategy W (ASW): Formative assessments (FA1 and FA2), also known as
assignments, will count forty percent (40%) - twenty percent (20%) each - towards the overall
mark. Summative assessments in the form of a practicum, will count forty percent (40%), and
a research or reflective essay (SA2) will count twenty percent (20%) towards the overall mark.
There are a number of assessment types appropriate to the distance-learning environment,

of which the most common are report writing, true-false tests and multiple-choice
examinations (Foltz, 1990)3.
Distance learning is reliant on independent study. For this reason, most formative
assessments are considered open-book assessments, while summative assessments are
invigilated events. They all aim at assessing a student's mastery of certain or specific subject
matter.
Regardless of the assessment type, any formative assessment in this environment should
have three main aims, which are:
• To encourage students to review

• To enable students to monitor their comprehension of the knowledge areas
• To reinforce the learning outcomes of a study unit or series of units.
Measured by these aims, outlined below are the various types of assessments utilised in the
module and the learning programme.
3.3.1 Self-Assessment and Recommended Reading
Students are guided by the course outlines and contents within study units to complete
specific self-assessment exercises, such as, self-evaluation questionnaires, activities or
practices, which appear in the prescribed textbooks and/or study guides. In addition, students
are encouraged to make use of the institution’s library, or any resource centre, to access the
recommended reading list which includes self-assessment exercises.
Students are also informed of the importance and relevance of self-assessment exercises, and
are encouraged to keep records of it to assist with reflection, examination preparation and
student-centred interaction.
3
Foltz, D. 1990. Toward Better Service and Testing. Occasional Paper Number 3. Washington, DC: DETC.
3.3.2 Report Writing
With some study units or courses, writing and composition might be the only practical method
of assessment. Report writing requires a student to demonstrate their knowledge of a
particular subject through composing a written representation that communicates
understanding and insight.
3.3.3 True-False Test
Carefully constructed true-false questions can measure higher mental processes such as
understanding, application and interpretation. They are particularly suitable for testing
attitudes and beliefs, and can be adapted to most content areas, although they work best in
testing elementary subject matter. True-false tests do have the advantage of making it
possible to ask many questions on a larger number of knowledge areas in a limited amount
of time.
3.3.4 Open-Book Test/Assignment
Open-book testing is used to:

• Stimulate review
• Reinforce learning objectives
• Communicate goals
• Furnish feedback on misunderstood knowledge areas
• Separate those students who have reached a specific set of objectives from those who
have not, indicating further specific interventions by the Faculty.
Suitable open-book questions should require that students review the learning material
continuously. This assessment type should be thought of as context-dependent. If questions
are properly prepared, students have to demonstrate their ability to extrapolate and infer key
concepts from a specific knowledge area, rather than simply find an answer in the text and
“parrot” it back. Therefore, the emphasis is on repetition and inference, as students review
and re-review the learning materials in an effort to recognise, understand, synthesize and
select appropriate responses. Questions that can be answered on the basis of rote memory
should be kept to a minimum as students can simply "cram" to prepare for such testing and
little, if any, learning takes place.
3.3.5 Multiple-Choice Question Examination
Multiple-choice examinations, consisting of questions in the form of a stem and four or five
options (the correct answer along with distracters, or incorrect alternatives) have many
advantages. The greatest of these is perhaps their versatility: multiple-choice questions can
measure factual recall, as well as the students' ability to reason, exercise judgment, and
express themselves correctly and effectively. Students find them less ambiguous and
generally prefer them to true-false tests. This type of assessment can also be scored
accurately and provide immense per-item reliability.
3.3.6 Student-Centred Interaction
By encouraging students to continually ask questions and be comfortable with the

questioning of concepts and engaging in self-reflection, students are given ample opportunity
to assess and improve their knowledge and understanding by means of effective
communication with distance learning faculty and peers.
3.3.7 Sample Assignment and Examination Papers and Memoranda
Students receive a sample assignment and memorandum, as well as a sample examination

paper and memorandum, so as to familiarise themselves with the various assessment formats
and duration. This further enables them to determine their overall progress and level of
preparedness for the final summative assessment.
3.4 Feedback to Students
Boston’s approach to teaching, learning and assessment is strongly influenced by the belief
that students are entitled to feedback and a discussion on their performance. This is
interwoven into the teaching strategies. There are many sound educational reasons for doing
this in a comprehensive manner. Students are encouraged to contact Educators for personal
feedback on their assessments.
Detailed feedback reports accompany the marks/grades for formal formative assessments,
which are communicated and returned to students within 4 weeks after the due dates of
submission. In each instance, an examiner’s report accompanies the memorandum with
correct responses and/or examples of model answers for each formal formative assessment
activity.
This provides an opportunity to repeat important learning objectives and knowledge areas,
considering that repetition is a powerful element in learning. A good feedback report should
motivate and assist students to improve. A thorough feedback report should also clear up any
misconceptions and misunderstandings.
Finally, a comprehensive feedback report should point out learning objectives, and underline
and reinforce important knowledge areas. Therefore, feedback on assessments should
include the following aspects:
• Identifying errors and, where appropriate, describe the degree of error
• Postulating the probable cause of the error
• Suggesting a solution or a way to improve
• Comments that are positive and encouraging
• Focus on specific errors, clarifying any concepts the student overlooked.
4. STUDENT ACCESS TO IT, LIBRARY AND OTHER RESOURCES
4.1 Distance Learners and Support Centres
Essential to the effectiveness of the Boston network of Support Centres is granting distance
learners localised access to technology, library and the service support resources that are
provided to students by the Boston Head Office.
As guiding principles, it must be re-emphasised that Boston Support Centres do not form part
of the programme other than the centres being conveniently located throughout South Africa
which assist them in serving as a point of contact and access to provide support services for
students who:
• do not have access to resource rich infrastructure at home, an office or elsewhere in
a relative close proximity
• Experience difficulty with taking control of their study environments, for example,
mitigating excessive distractions, exercising sufficient self-discipline, implementing a
routine, and managing time
• Relate better to auditory and kinaesthetic learning styles.
In other words, every learner is registered with Head Office as a unique distance learner, and
the teaching, learning and assessment remains at a distance with appropriate quality assured
materials and services to complete their studies independently. No student accessing services
at a Support Centre will be placed at a discernible advantage over a student that elects not to
access services at a Support Centre. Support Centres will be utilised as examination venues
for invigilated sittings.
In considering all of the above information, the support services accessible at Boston Support
Centres may be delineated in the following manner by classifying them as:
• Venues for accessing the range of important career, study and motivational
counselling services, and the completing and submitting of an online Application for
Admission, or other administrative documents i.e. change of module, submitting
request for deferral, handing in ID etc.
• Venues for accessing Information Technology and Communication resources, to pre-
book4 time to utilise computers for accessing filmed lectures on TMS , typing
assessments, submitting assessments online, emailing Head Office re: Academic,
Assessment, and Administrative queries etc.
• Venues for facilitating logistical support i.e. a reliable address to receive and send
study guides, prescribed textbooks, assignments, feedback reports, certificates etc.
• Venues for facilitating the sitting of invigilated tests and examinations.
4
It is important to pre-book and confirm bookings with the selected Support Centre for attendance of video
(TMS/LMS) sessions, assessment uploading and submission and sitting of tests within formative assessment weeks.
4.2 Hours of Operation
Normal hours of operation within Boston for telephonic, email or access to premises are
Monday to Thursday 08:00 to 17:00 and on Friday from 08:00 to 13:00. An extension hereof
will be reviewed periodically in accordance with students’ needs.
4.3 Head Office Resource Centre
Boston established a Resource Centre (RC) for students and staff at both its Head Offices in
Orange Grove and Stellenbosch. The RC provides students and Support Centres with access
to national and international databases for all its information searches. All research and
information material not available in the RC may be obtained for students, faculty, support
staff and Support Centres through purchasing and disseminating of e-publications.
Librarian Contact details

Jacques Viljoen 021-815-4808
jacquesv@boston.co.za
5. COMMUNICATION AND SUPPORT
5.1 Student Support
Students are encouraged to engage with Educators as and when they have academic queries
- as indicated in section 5.3 below. Educators will provide support during the semester within
office hours, Monday to Thursday.
Please Note: There will be no student support from Educators on a Friday.
5.2 General and Administrative Support (Administrative – NOT Course Related)
When you communicate with Boston, or when you submit your assignments, it is important
that you supply the College with your:
• Surname and initials
• Student number
• ID number
• Correct postal address and/or email address
• Cellular phone number and/or telephone numbers at home and/or work
• Name of Support Centre selected
Please note that all written communication such as emails, and all queries must be addressed
under specific topics. Please address your queries in writing to the relevant section at the
College i.e. the Administrative Coordinators deal with registrations, student accounts,
timetables, results, etc., the Educators deal with academic content matters such as a query
about a particular theory in the guide or an assignment question within a paper.
When phoning the Institution please identify your specific query to the switchboard operator
to enable them to put you through to the relevant department and person who can address
your inquiry effectively.
Registrar: Administration Contact details

Ruan Venter 021-271-0850
ruanv@boston.co.za
Assessment Manager Contact details
Samantha Mitchell 021-815-4820
samantham@boston.co.za
Student Accounts Consultant Contact details
Your selected Support Centre Available on website
5.3 Academic Support (Course Related – Not Administrative)
An Educator who is a qualified and experienced subject specialist is appointed for each
module to support students throughout their studies. Academic matters should be addressed
directly with the Educator (see contact details on the next page).
Educator support does not provide support for queries of an administrative nature, such as
due dates or late submissions. Educators deal only with academic content or subject matter-
related queries such as: “... please help clarify the meaning of question 2, which appears on
page 15 of my Study Guide for Fundamentals of Accounting.”
At least one Educator will be assigned to each module of study. The Educator will be available
to assist students with academic queries related to subject-matter content. They will also be
available to offer assistance and feedback on assessments upon request.
Support Centres are not staffed with Educators and students cannot expect to have their
academic queries addressed by Support Centre staff.
Registrar: Academic Contact details

Nadine Botha 021-815-4812
nadinek@boston.co.za
Academic & Quality Manager (AQM)
Charmari Wolmarans 021-271-0845
charmariw@boston.co.za
Educator Contact details
Esti Slabbert 021-271-0857
estis@boston.co.za
Providing quality academic support is of the utmost importance to Boston. In order to ensure
this quality is maintained, Boston has undertaken to ensure the process of engaging with
Educators is as transparent as possible.
Students are able to contact an Educator by means of:

1. E-mail
2. Telephone
3. Face-to-face consultation
4. Skype
1. E-mail queries must be directed to the Educator for a particular module. The Educator will
reply directly to the student and will copy in the Academic Coordinator.
2. Telephonic consultations will take place by appointment only. Firstly, this ensures that the
most suitable facilitator or tutor is allocated. Secondly, it will also serve to ensure that a
firm arrangement is made, and a sufficient time-slot is allocated to deal thoroughly with
the subject matter concerned. Thirdly, the Educator will call the student on the agreed
number at the agreed time. Confirmation of the agreed number and time will be
communicated to the student beforehand. To book a telephonic appointment, students
can either call or e-mail the Educator or Academic Quality Manager.
3. Face-to-face consultations will take place by appointment only. Face-to-face

appointments will take place exclusively at the Head Office in Orange Grove,
Johannesburg. Confirmation of the agreed time will be communicated to the student
beforehand. To request a face-to-face appointment, students can either call or e-mail the
Educator or Academic Quality Manager.
4. Skype consultations will take place by appointment only. Firstly, this ensures that the most
suitable facilitator or tutor is allocated. Secondly, it will also serve to ensure that a firm
arrangement is made, and a sufficient time-slot is allocated to deal thoroughly with the
subject matter concerned. Thirdly, the Educator will skype-call the student at the agreed
time. Confirmation of the agreed time will be communicated to the student beforehand.
To book a skype-call appointment, students can either call or e-mail the Educator or
Academic Quality Manager.
Students must take note that any further or subsequent communication must be directed to
the Educator or Academic Quality Manager, who in turn will repeat the process described
above.
5.4 Student Wellness
Embarking on higher education studies is an exciting journey. It can also be a time of change
and pressure that may lead to unexpected challenges that affect your academic performance
and/or personal life. Student Wellness is an initiative that offers limited personal support to
our students for assistance and referrals due to personal, social or career issues/concerns.
A dedicated Student Wellness Module is available to all registered students on ColCampus.

The purpose of the module is to provide Boston’s students with information and guidance
regarding a variety of interpersonal, study, and wellness topics, with the aim of making the
transition to college and distance learning as seamless as possible.
Head of Institution/Academic Head Contact details

Dr. Hendrik Botha 021-815-4811
hendrik@boston.co.za
Registrar: Academic Contact details
Nadine Botha 021-815-4812
nadinek@boston.co.za
Student Wellness Contact details
Robyn Wright-Parkin 011-883-0933
robynw@boston.co.za
5.5 Summary of Contact Procedure:
Forward your query or questions to the Academic Quality Manager or your Educator via e-
mail, or phone to request an appointment to speak with an Educator.
When contacting your Educator or the Academic Quality Manager, please be specific about
the support you require by providing the following information, together with your personal
information:
• Learning programme name and module code

• Page number and query or question
• Name and Surname
• Student or ID number
• Correct postal address and/or email address
• Correct cellular phone number and/or telephone numbers at home and work
Within two (2) business days (weekends and public holidays are excluded), an Educator will
respond or make direct contact with you. The Educator’s response will also be copied to the
Academic Coordinator’s e-mail address for record keeping and quality control purposes.
Please Note: The Educator support facility will not be available between 15 December and
15 January annually.
6. REQUIREMENTS TO COMPLETE THE MODULE SUCCESSFULLY
6.1 General
This is an examined module. To enable students to complete this module successfully

students must have the following:
• Access to TMS and the LMS
• A Course Outline, available on the LMS
• Prescribed textbook(s) and/or study guide, and, where applicable, recommended
textbooks and journal readings
• A file to keep printouts of own sourced additional readings, records, copies of submitted
formative assessments (assignments and/or reports) and any other materials not stored
electronically for reference purposes
• Completion of the learning activities in the LMS, and that appear throughout each unit
in the study guide and/or prescribed textbook; as well as the self-evaluation section
that appears at the end of each study unit, referencing the aligned chapter(s), which
should then be filed for reflective and preparation of summative assessment
(examination)
• Submission of the formative assessments (assignments and/or participation in the tests)
and summative assessments (examinations and/or assignments) within the LMS or at
the Support Centre
• Commitment to viewing filmed lectures hosted in the LMS or available on TMS at the
Support Centres, especially those learners who study better through audio and/or visual
means
• Commitment in re-viewing filmed lectures when the sub-minima has not been obtained
in formal formative assessments
• Commitment in re-viewing specific sections of the filmed lectures when a topic and/or
specific unit is not yet completely mastered.
6.2 Comments on the Study Guide and/or Prescribed Textbook
• The point of departure is the module specific study guide and/or prescribed textbook.
• It is the core component of the learning material and guides the student structurally
through each module.
• The learning activities contained within the study guide and/or prescribed textbook and
the referencing to the self-assessment activities are of utmost importance to ensure
and assess understanding of the learning content.
• All the study material required for examination purposes is contained in the study guide
and/or prescribed textbook.
• Please note that students may have to consult additional sources to complete the
various formative or summative assessments such as academic or business journal
articles or a site visitation.
• Content in the study guide and/or prescribed textbook is presented in such a manner
that students will be able to master the study material through self-study.
• The formative assessment (assignment) is presented in such a manner that students will
be able to master completion through both self-study, and use of the study guide
and/or prescribed textbook.
• At the end of each unit in the study guide and/or prescribed textbook are a selection of
questions or self-evaluation tests and/or activities, through which students can assess
their ability to master the study material and make their own meaning of the work
covered in the unit.
• Above average results/marks will be allocated to answers in formative assessments
(assignments and/or tests) and in the summative assessments (examinations), if the
examiner notes that the selected content was studied thoroughly. Some questions may
be aimed at assessing the insight students acquired into the study material with
application based questions.
• Boston is developing a new and exciting platform that will further enhance access to
high quality literature and academic resources – coming soon!
6.3 Prescribed Course Material
• Correia, C. 2019. Financial Management, 9th Edition. Claremont: Juta

Please refer to Appendix C.
6.4 Recommended Reading
• Hubbard, D.W. 2009. The failure of risk management: why it's broken and how to fix
it. [e-book]. New Jersey: John Wiley & Sons. Retrieved from
http://202.166.170.213:8080/xmlui/bitstream/handle/123456789/3848/%20The%2
0failure%20of%20risk%20management%20%20why%20it%27s%20broken%20and%
20how%20to%20fix%20it.pdf?sequence=1&isAllowed=y [Accessed 27 January 2020].
• Manuj, I., Mentzer, J.T. 2008. Global supply-chain risk management strategies.
International journal of physical distribution and logistics management, 38(3): 192-
223. Retrieved form
https://pdfs.semanticscholar.org/b87c/2f2723b6172756449aa10fb157febf539fcc.pd
f [Accessed 27 January 2020].
• DuHadway, S., Carnovale, S., Hazen, B. 2019. Understanding risk management for
intentional supply chain disruptions: risk detection, risk mitigation and risk recovery.
Annals of operations research, 283(1-2):179-198. Retrieved from
https://www.researchgate.net/profile/Benjamin_Hazen/publication/314194291_Un
derstanding_risk_management_for_intentional_supply_chain_disruptions_risk_dete
ction_risk_mitigation_and_risk_recovery/links/596a80a8a6fdcc18ea74fac0/Underst
anding-risk-management-for-intentional-supply-chain-disruptions-risk-detection-
risk-mitigation-and-risk-recovery [Accessed 27 January 2020].
• Any topical or related articles students may access, such as academic, newspapers,
trade magazines or through the Internet.
• References made to journals and other articles and websites in the bibliographies
contained in the e-prescribed textbook and recommended textbooks.
6.5 Additional Teaching and Learning Activities
• During the course of the semester, the Educators will provide students with additional
teaching and learning activities. These activities are aimed at enriching students’
learning experience and ensuring that students are exposed to a variety of resources.
• These learning activities are neither compulsory nor weighted, but it will be to the
students’ benefit to participate in these activities.
7. MODULE STRUCTURE AND ASSESSMENT SPECIFICS
7.1 Module Structure
Two different types of assessments are used in the module:

• Formative assessments (such as individual assignments and tests)
• Summative assessments (such as invigilated examinations and assignments).
In support hereof, the academic year is divided into two (2) semesters, each consisting of a
twenty (20) week cycle5 with provision for the following:
o Ten (10) weeks dedicated to teaching and learning of study units and prescribed texts
o Additionally, structured throughout, four (4) weeks dedicated to formative
assessment and feedback opportunities for semester marks
o Finally, four (4) weeks, depending on examination dates, are dedicated to preparation,
sitting and submission of summative assessments, plus two (2) weeks for the
finalisation and release of overall module results.
This module makes use of the: AS5 Assessment Strategy
o Two (2) Formative Assessment (FA) opportunities:

o Both are formally assessed for semester marks and contribute towards the final
module mark
o Both FA1 and FA2 are in the form of an assignment or test.
o Two (2) Summative Assessment (SA) opportunities:

o Both are formally assessed for semester marks and contribute towards the final
module mark
o SA1 is in the form of a final exam or capstone project and SA2 is in the form of an
Excel Project.
7.2 Formative Assessments
The purpose of formative assessments is to determine where students are in relation to where
they should be in terms of the specific outcomes for each module. Formative assessments assist
students and Educators with making a determination as to what work will have to be revisited.
Thus, formative assessments are very important for students to monitor their progress and their
readiness to sit for examinations (summative assessments).
5
For a detailed breakdown of the 20 week cycle, in table format, pertaining to this module, see Annexure B.
Formative assessments, excluding tests which follow the protocols of examination sittings6 (see
also section 7.3 below), must be submitted for marking by uploading to the LMS (refer to
Annexure D) which can be accessed at the Support Centre or from home.
To complete your formative assessment, please take note of the following:
Formative Assessment (FA1)

• Read the instructions for the assessment carefully before commencing with the
assessment.
• Remember to provide your:
o initials
o surname
o student number
o ID number
o correct postal address and code or email address.
• In cases of assignments, essays, research papers or reports remember the following:
o Provide your student number at the top of each page of your assignment.
o Make sure that pages are numbered correctly.
• Complete and submit your assessment well ahead of the due date.
• Every formative assessment must be submitted from the correct module page on the
LMS. If a student submits their assessment incorrectly (for example, submitting a
Company Law 1 assignment in the Business Management 1 module page), the student
forfeits the grade for the assignment and will be awarded 0%. Boston does not assume
responsibility for ensuring that a student’s assignment reaches the correct
Educator/grader. Students have to ensure that they submit their assignment correctly
in order for a mark to be awarded.
Formative Assessment 2 (FA2)

• This assessment consists of an assignment or test.
• Read the instructions for the assessment carefully before commencing with the
assessment.
7.3 Summative Assessments
Summative Assessment (SA1)

Students are required to sit for a final integrative summative assessment (examination) for the
module at the end of the semester. This will be completed under invigilated conditions.
To prepare for the examinations, please take note of the following:

• Study all the content as outlined in the study guide and/or prescribed textbook.
6
Boston Student Rules and Regulations
• Do not take unnecessary risks, and ensure that all module content is studied
thoroughly.
• Identify themes and refer to the specific outcomes and assessment criteria of each
unit or chapter.
• Answer the five multiple-choice questions provided at the end of each unit, or
referenced self-assessment questions per chapter in the study guide and/or
prescribed textbook. This will provide an indication of the level of mastery of study
material.
• Plan your studies according to the examination dates and the due date set for your
assessments in Annexure D: Academic Calendar.
Summative Assessment 2 (SA2):

In addition to SA1, students are required to complete and submit a final integrative
summative assessment (assignment) for the module at the end of the semester. This will be
in the form of an Excel project, which will be completed and submitted no later than the
examination date of the SA1. It must be in typed format and uploaded on the LMS.
8. GRADE REQUIREMENTS
The Formative and Summative assessments are weighted according to the following
guidelines:
• Formative assessments are weighted thirty percent (30%) of the final module mark
• Summative assessment are weighted seventy percent (70%) of the final module mark
8.1 General
The combination of type of assessment, weighting per assessment, sub-minimum per

assessment, and overall module pass requirements are detailed in the Table below.
Assessment/Type Weight
Due Date: Formative 15%
Refer: Academic Calendar Assessment 1
Due Date: Formative 15%
Due Date: Summative 60%
Due Date: Summative 10%
8.2 Summative Assessment (Examination) Entry Requirements
There are no entry requirements for the Summative Assessments, however the overall mark
will be calculated from the student’s performance on the formative assessment (FA) and
summative assessment (SA).
Formative assessments (FA1 and FA2), also known as assignments or tests, will count thirty
percent (30%) - fifteen percent (15%) each - towards the overall mark. Summative
assessments in the form of a final exam or capstone project (SA1), will count sixty percent
(60%), and a research or reflective essay (SA2) will count ten percent (10%) towards the
overall mark.
8.3 Requirements for Promotion and Distinction
In order to obtain a pass result for a module and be awarded the module credits (promoted),
students must obtain a module average of fifty percent (50%) or higher. The average is
calculated according to the weightings as indicated in the table above. For a student intending
to be promoted with “Distinction”, a module average of seventy-five percent (75%) or higher
is required.
8.4 Supplementary Assessments
There are no supplementary opportunities available for the Formative Assessments. Students
who do not qualify for promotion (i.e. have not obtained a module average of 50%), are
eligible to participate in supplementary summative assessment/s.
9. STUDY PROCEDURE AND GUIDELINES FOR COMPLETING ASSESSMENTS
• Study the content of each unit and/or chapter before proceeding to the next unit and/or
chapter.
• Complete the learning activities within each unit and self-assessment questions at the
end of each unit and/or chapter.
• Complete and submit your assessments as soon as possible.
• Students must keep in mind that although all Educators are professional academics,
they are also human. A well-presented answer, in typed or printed format, will make it
easier for the examiner to read answers and to evaluate the student’s knowledge.
• Answers must be neat, well organised and grammatically edited.
• Formative Assessment questions may also be used as Summative Assessment
questions.
• All students with difficulties may contact the College and arrange to meet with the
Faculty to discuss study difficulties.
10. PLAGIARISM
Plagiarism (copying) is a serious offence and is a contravention of the Copyright Act (98 of
1978) of South Africa. Students are guilty of plagiarism when they appropriate the ideas and
work of others without due recognition. For detailed information about the nature of
plagiarism, as well as how to avoid committing plagiarism, refer to Annexure E.
It is important to note that plagiarism has been committed when two or more students submit
identical, verbatim copies of the same assessment and/or examination answers. The
Academic Committee reserves the right to take appropriate action in cases where plagiarism
is found. Should it be found that a student copied an assessment or examination answer from
a fellow student, both students involved will not receive their result for that particular
assessment.
With the Formative Assessment 1 (FA1) and Summative Assessment 2 (SA2) a student is
required to complete a plagiarism form and attach this to the assignment when uploading onto
10.1 Unicheck
Students will not make use of Unicheck for this module.
A student is required to complete the online plagiarism declaration when uploading

assessments onto ColCampus.
11. CONCLUSION
The best way to prepare for an assessment is to work methodically and continuously
throughout the semester. This requires students to:
• Plan and programme their studies, and the writing of assessments by taking into
account their personal and work schedules and other commitments.
• Make a habit of planning well ahead, and noting in advance those dates and events that
could affect their studies.
• Arrange study leave and study blocks well in advance.
We wish you every success in your studies!
ANNEXURE A:
EXPLANATION OF ACTION VERBS REQUIRED FOR COMPLETING ASSESSMENTS
Action verb Description

Analyse Describe the different parts of a topic and explain how they work
together or not. Give arguments for and against each situation. A
reasonable amount of insight must be shown in terms of knowledge
already gained in this regard.
Apply Show the application of acquired knowledge or given information in
practice or in relation to what is asked. Use knowledge to find an
answer to the question.
Comment Give your own opinion regarding the subject matter and illustrate it
through examples. Interpret and evaluate.
Compare Contrast facts, events or problems and indicate the similarities and
differences, or analyse the similarities and differences between
statements, ideas, etc.
Contrast Point out the differences between certain objects, facts, events or
characteristics.
Criticise Point out the good and bad characteristics or viewpoints and give your
own opinion after taking into account all the facts.
Define Give a clear, to the point, systematic explanation or description of
concepts; to reflect the precise meaning thereof.
Describe Give the characteristics, basic facts or results in a logical, systematic
and well-structured manner. Comments and your own interpretation
are not necessary.
Discuss Give terminology and concepts in your own words with comments or
your own interpretation. Compare, contrast and debate.
Design Create and plan. Portray by means of illustrations or concrete objects.
Create a model with a specific objective in mind and indicate the
planning phase.
Evaluate Make an assessment of values based on specific points of reference or
criteria and give your own opinion. Do not describe. Personal
viewpoints may be given.
Explain Clarify the term, concept or topic by presenting it with your own
knowledge and words. If required you can use illustrations, descriptions
or simple logical layout of the facts.
Illustrate Use a sketch, picture, diagram, graph or concrete item to explain a
concept or solve a problem. This can also mean to give examples in
well-chosen, descriptive words.
Motivate Provide reasons and comment.
Summarise State the key or most important aspects of a topic without detail,
illustrations, critical analysis and discussion.
ANNEXURE B:
PROPOSED STUDY PROGRAMME
Each semester has a 14-week duration from the last day of Registrations to the start of the
Examination Period. We strongly recommend that students follow the study programme for
the course outlined below closely. It is important not to fall behind. Students are expected to
apply a great deal of self-discipline otherwise they may be unprepared for the examination. See
Table overleaf.
ANNEXURE B:
Application of Financial Management Techniques

(HFMN331-1)
WEEK LEARNING OUTCOMES TMS FORMATIVE SUMMATIVE
PRESCRIBED RECOMMENDED
After studying the prescribed and recommended (VID ASSESSMEN ASSESSMEN OTHER
COURSEWARE BOOK(S)
material for the week, you should be able to: EO) T (FA) T (SA)
• Outline the various reports used to communicate
financial information to stakeholders.
• Identify the objectives of financial statement
analysis.
• Identify the limitations of using accounting data to
perform financial analysis.
Complete
• Outline the various approaches to financial Take note
Self-
statement analysis and to identify when each of
Assessment
approach is appropriate. Unit 1 important
168 Activities
1 • Calculate and interpret commonly used financial (Chapter 5) 84 mins N/A dates in
mins and Learning
ratios. 252 mins your
Activities
• Draw up a Du Pont analysis and interpret a structured Academic
financial analysis. Calendar
336 mins
• Use failure prediction models to establish potential
financial distress.
• Outline the limitations of ratio analysis.
• Calculate and interpret Economic Value Added (EVA).
• Identify the warning signs in regard to the quality of
accounting data.
HFMN331-1-ProposedStudyProgramme-ES-V1-20042021
ANNEXURE B:

(HFMN331-1)
After studying the prescribed and recommended (VIDEO ASSESSMENT ASSESSMENT OTHER
COURSEWARE BOOK(S)
material for the week, you should be able to: ) (FA) (SA)
• Set out the reasons that the capital budgeting
decision is critical for the firm.
• Understand the importance of cash flows rather
than accounting earnings in the evaluation of
investment projects.
• Define the types of investments. Complete
Self-
• Apply and explain the techniques used to evaluate
Unit 2 Assessment
capital projects. 168
2 (Chapter 8) 84 mins Activities and N/A
• Set out the advantages and disadvantages of each mins Learning
technique. 252 mins
Activities
• Determine the relevant cash flows to be included in
the analysis. 336 mins
• Consider the tax implications and the effects of tax
allowances in the investment decision.
• Understand the role of post-audits in capital
budgeting.
32 HFMN331-1-ProposedStudyProgramme-CP-V1-15072020
ANNEXURE B:

(HFMN331-1)
After studying the prescribed and recommended (VIDEO) ASSESSMENT ASSESSMENT OTHER
COURSEWARE BOOK(S)
material for the week, you should be able to: (FA) (SA)
• Evaluate projects with unequal economic lives.
• Understand the effects of inflation on the capital
budgeting decision.
• Adjust for inflation in selecting the discount rate or
calculating future cash flows.
• Rand and evaluate projects under conditions of
capital rationing.
• Understand how tax losses affect the capital Complete Self-
budgeting decision. Assessment
• Set out the relationship between optimal economic Unit 3 Activities and
168
3 lives and abandonment values and determine (Chapter 9) 84 mins Learning N/A
mins
optimal replacement decisions. 252 mins Activities
• Set out the role of real options in project selection.
• State the practices of companies in evaluating 336 mins
investment projects.
• Understand the effects of the reinvestment decision
on using the IRR.
• Understand how cognitive biases and behavioural
finance concepts may affect capital budgeting
decisions.
ANNEXURE B:

(HFMN331-1)
COURSEWARE BOOK(S)
• Define the types of risk involved in investment
projects.
• Explain the importance of risk assessment and risk
adjustment in project evaluation.
• Understand the use of probability distribution and
expected values in risk assessment.
• Determine how sensitive the net present value is to
changes in key variables such as pricing, volumes,
Complete Self-
variable costs and the discount rate.
Assessment
• Measure the effect on a project’s returns of a set of
Unit 4 Activities and
specific scenarios. 168
4 (Chapter 10) 84 mins Learning N/A
• Use decision trees to evaluate projects which involve mins
252 mins Activities
sequential decisions.
• Apply certainty equivalents to adjust for project risk.
336 mins
• Calculate a discounted break-even and differentiate
this from accounting break-even.
• Understand the use of Monte-Carlo simulation in
analysing projects.
• Define market risk and calculate project betas.
• Compare the use of risk adjusted discount rates and
certainty equivalents.
• Use strategic analysis to evaluate the risk of a project.
ANNEXURE B:
Application of Financial Management Techniques (HFMN331-1)

COURSEWARE BOOK(S)
Estimated
Submit FA1
View/study preparation
online on
5&6 Sample time: 6 hours
DUE: FORMATIVE ASSESSMENT 1 Review Review N/A ColCampus
Formative Refer to
Assessments academic
calendar
ANNEXURE B:

(HFMN331-1)
COURSEWARE BOOK(S)
Chapter 11:
• Explain the terms working capital, net working
capital, working capital policy and working capital
management.
• Calculate the working capital cycle in days.
• Describe the impact of inflation on working capital.
• Outline the various working capital policies and
their respective impact on risk and return.
• Outline the various working capital financing
policies and their respective impact on risk and
return.
• Calculate working capital funding requirements Complete
using the percentage of sales method. Self-
• Identify the factors that will influence future sales. Unit 5 Assessment
7 (Chapters 11 84 mins 168 Activities and N/A
Chapter 12: & 12) mins Learning
• Explain the concepts relating to credit policy, 252 mins Activities
creditworthiness, collection policy and cash 336 mins
discounts.
• Calculate the impact of a change in credit policy on
profitability.
• Describe various aspects of inventory
management.
• Describe various aspects of account receivable
management.
• Calculate the economic order quantity and the
optimal level of safety inventory.
• Outline inventory control systems including just-in-
time.
ANNEXURE B:
• Describe the reasons for holding cash and present

a cash budget.
• Identify the various types of short-term finance
and calculate their respective costs.
ANNEXURE B:

(HFMN331-1)
COURSEWARE BOOK(S)
• Contrast the active variable and passive residual
approaches to managing dividends.
• Explain the effect of individual payments on the
growth model valuation formula.
• Calculate the dividend by applying the residual
approach.
• Identify factors that affect the dividend decision. Complete
• Identify alternative dividend payout policies. Self-
• List important dates in the declaration and Assessment
Unit 6
8 payment of dividends. 84 mins 168 Activities and N/A
(Chapter 16)
• Explain alternative methods of making mins Learning
252 mins
distributions to shareholders. Activities
• Explain how taxation affects shareholders return. 336 mins
• Describe the reasons why share buy-backs occur as
an alternative to dividends.
• Understand the Companies Act and tax effects of
share buy-backs.
• Explain how dividend re-investment plans (DRPs)
work.
ANNEXURE B:

(HFMN331-1)
COURSEWARE BOOK(S)
• Define the different types of mergers.
• Indicate the motives for mergers and acquisitions.
• Determine the terms of a merge using cash or a
share exchange.
• Define and compute exchange ratios.
• Compute the effect of an exchange ratio on earnings
per share.
• Determine the effects of synergy on setting
maximum and minimum exchange ratios.
• Compute post-merger price-earnings ratios.
• Understand the effects of a merger on dividends
Complete Self-
and net asset value.
Assessment
• Explain the workings of a reverse takeover. Unit 7 Activities and
• Indicate the defensive tactics to avoid a takeover. (Chapter 17) 168
9 84 mins Learning N/A
• Understand how to value the equity of target mins
252 mins Activities
companies.
• Explain the regulation of merges and acquisitions in
336 mins
terms of the Companies Act, 2008 and understand
the role of the Takeover Regulation Panel.
• Understand the process and reasons for unbundling
and spin-offs.
• Identify the main provisions of the Companies Act,
2008 that impact on mergers and acquisitions.
• Explain how leveraged buy-outs work.
• Understand the issues arising from corporate
restructuring, refinancing and reorganisation of a
firm in financial distress and explain the business
rescue provisions of the Companies Act, 2008.
ANNEXURE B:
• Determine the causes and possible turnaround

strategies for financially troubled companies.
• Understand how behavioural finance may explain
certain attributes of mergers in the real world.
ANNEXURE B:

(HFMN331-1)
COURSEWARE BOOK(S)
• Understand the context of risk management.
• Define, measure and set out strategies to manage
interest rate risk, currency risk, refinancing risk,
market/commodity price risk, credit risk and
liquidity risk.
• Explain the reason for financial innovation.
• Understand the characteristics of call and put
options.
• Identify and understand the factors that determine
option values.
• Apply the Black-Scholes option pricing model.
• Apply and understand the binomial pricing model. Complete Self-
• Use Excel to apply the Black-Scholes and binomial Assessment
models. Unit 8 Activities and
(Chapter 18) 168
10 • Understand how futures contracts work. 84 mins Learning N/A
mins
• Determine the price of a futures contract. 252 mins Activities
• Explain the mark-to-market process and use of
margins employed by futures exchanges. 336 mins
• Explain the use of derivatives for hedging purposes.
• Understand and construct an interest rate swap.
• Define forward rate agreements.
• Define and determine a bond’s duration.
• Explain securitisation.
• Explain tax arbitrage.
• Understand the use of option pricing models for
expensing employee share options in terms of
IFRS2.
• Identify some fundamental option trading
strategies.
ANNEXURE B:

(HFMN331-1)
COURSEWARE BOOK(S)
View/study
Estimated
Sample Complete
preparation
11 & Formative FA2
time: 6 hours
12 DUE: FORMATIVE ASSESSMENT 2 Review Assessments Review N/A online on
Refer to
ColCamp
academic
us
calendar
• Understand how the foreign exchange market
operates.
• Determine how exchange rates are quoted in the
spot and forward markets.
• Understand the determinates of currency rate
movements.
• Explain the pricing of forward exchange and the
use of arbitrage to achieve interest parity.
• Describe the types of foreign exchange exposure Complete
that a firm is required to manage. Self-
• Determine how hedging techniques such as Assessment
Unit 9
13 forward contracts and money market hedges can 84 mins 168 Activities and N/A
(Chapter 19)
be used to avoid transaction exposure. mins Learning
252 mins
• Indicate when and how currency options should be Activities
used to avoid exchange rate risk. 336 mins
• Describe the use of futures contracts to hedge
against foreign currency exposures.
• Determine the effects of exchange control on
South African companies.
• Illustrate the motives for international
diversification by South African companies.
• Define the methods of offshore financing and
motives for offshore listing.
ANNEXURE B:
• Understand the methods of evaluating foreign

projects in relation to estimating future cash flows
and the cost of capital.
• Explain the use of letters of credit in foreign
currency transactions.
• Describe the benefits of international portfolio
diversification.
ANNEXURE B:

(HFMN331-1)
COURSEWARE BOOK(S)
Chapter 20:
• Understand the objectives and purpose of
preparing a business plan.
• Set out and analyse the essential components of
any business plan.
• Explain the advantages of business planning.
• Understand the business plan requirements of
South African financiers such as Invenfin and the
Industrial Development Corporation (IDC).
• Use a financial model to forecast financial
statements, cash flows and undertake the
valuation of a firm or project.
Complete Self-
• Understand how to apply good spreadsheet design
Assessment
and avoid or minimise potential financial
Unit 10A & 10B Activities and
modelling errors. 168
14 84 mins Learning N/A
• Explain the use of financial models and Excel in the (Chapters 20 & mins
21) 252 mins Activities
application of corporate finance theory.
336 mins
Chapter 21:
In this chapter, we will come full circle by going back to
where we started. We will analyse what writers such
as Rumelt and Marikides say about corporate strategy.
We will then study Michael Porter’s Five Forces Model
in greater depth and we will expand on what we
covered om Chapter 1. We will also refer to Porter’s
Value Chain Analysis as well as his Four Corners
Analysis. We then analyse business models and set out
the nine building blocks of a business model.
What is strategy? There are many different views of
what strategy is – so which view is correct? We have
ANNEXURE B:
frameworks that are useful but not definitive. Michael

Porter’s Five Forces Model (Harvard Business Review,
March-April 1979) is a useful framework to evaluate
and explain industry profitability. SWOT and PESTEL
are useful frameworks for business analysis and for
understanding a firm’s macro environment. The
objective of this chapter is to go beyond these
frameworks, to explain the difference between
strategy and industry analysis, and to introduce other
strategic models indicated in SAICA’s Competency
Framework. Finally, we conclude by evaluating the role
of disruptive technologies and big data on business
models.
Strategic analysis involves industry analysis,
competitive positioning and setting out a firm’s
strategies in order to create sustainable value.
View all Submit SA2
View/study Examination:
previous FA’s online on
15 - Sample Refer to
EXAM WEEKS Review Review with ColCampus
17 Summative academic
suggested
Assessments calendar
solutions
ANNEXURE C: BREAKDOWN OF PRESCRIBED MATERIAL
The prescribed book for this module are:
• Correia, C. 2019. Financial Management, 9th Edition. Claremont: Juta
Note that only certain chapters of this textbook is prescribed for this module. Please keep this book as you might use it
again
The course material is divided into 10 units. These 10 units should be studied according to your proposed study
programme (Annexure B). Below, you can find a detailed breakdown of the chapters in the prescribed textbook that make
up the respective units in your study programme.

(HFMN331-1)
UNIT CHAPTERS IN PRESCRIBED TEXTBOOK
1 Chapter 5: Financial statement analysis
2 Chapter 8: Capital budgeting
3 Chapter 9: Further issues in capital budgeting
4 Chapter 10: Capital budgeting: Risk analysis

Formative Assessment 1 therefore covers Units 1,2,3 and 4 (Chapters 5 & 8
& 9 &10)
5A Chapter 11: Working capital
5B Chapter 12: Current asset management and short-term financing
6 Chapter 16: Dividends and share buy-backs
7 Chapter 17: Mergers, acquisitions and corporate restructuring
8 Chapter 18: Risk management and derivatives
Formative Assessment 2 therefore covers Units 5, 6, 7 and 8 (Chapters 11 & 12 & 16 & 17&
18)
9 Chapter 19: International financial management
10A Chapter 20: Business planning and financial modelling
10B Chapter 21: Corporate strategy and business models
46 Breakdown of Prescribed Course Material- HFMN331-1

ANNEXURE D: ACADEMIC CALENDAR SEM.B 2021
Academic Calendar Sem B 2021

SEMESTER: JULY - DECEMBER
Week Month Date Time Activity
August 2 17:00 Applications Close
August 6 13:00 Registrations Close
1 August 10 Studies Commence - Week 1
HPRM441-1 FA 1 – Assignment Due
Submit online via ColCampus no later than
13 August 2021 23:59. Feedback given in
1 August 13 23:59 Week 2
3 September 2021 23:59. Feedback given in
4 September 3 23:59 Week 5
10 September 2021 23:59. Feedback given in
5 September 10 23:59 Week 6
FA 1 – Assignment Due
6 September 17 23:59 17 September 2021 23:59
HACP130-1, HADV100-1, HADV1181,
HADV200-1, HADV300-1, HALP1181, HALT130-1,
HANT130-1, HAPR300-1, HAPS1181,
HAUD200-1, HAUD230-1, HAUD331-1,
HAUD332-1, HBFB1181, HBLE300-1,
HBMN100-1, HBMN102-1, HBMN1181,
HBMN130-1, HBMN200-1, HBMN201-1,
HBMN230-1, HBMN231-1, HBMN232-1,
HBMN300-1, HBMN301-1, HBMN330-1,
HBMN331-1, HBMN333-2, HBMN334-1,
HBMT1181, HBRD1181, HBRD300-1,
HBRD330-1, HBTB1181, HCBB1181, HCGA232-1,
HCGE130-1, HCGE231-1, HCGE232-1,
HCML330-1, HCMLW230-1, HCNM1181
HCONL330-1, HCOU1181, HCYLW230-1,
HDBP200-1, HECM1181, HECO130-1,
HECO231-1, HECO232-1, HEMK1181,
HENT100-1, HENT1181, HENT130-1, HENT200-1,
HENT230-1, HENT300-1, HENT330-1, HERL230-1,
HERL330-1, HETA231-1, HEVM100-1,
HEVM1181, HEVM200-1, HEVM300-1,
HFAC130-1, HFAC131-1, HFAC132-1, HFAC201-1,
47 SemB2021-V2-2021-20042021
HFMN230-1, HFMN233-1, HFMN300-1,
HFMN301-1, HFMN302-1, HFMN330-1,
HFMN331-1, HFOA100-1, HGPLC230-1,
HGPLD230-1, HHIVC1181, HHM1181,
HHMP1181, HHRD100-1, HHRD130-1,
HHRD200-1, HHRD230-1, HHRD300-1,
HHRF1181, HHRM100-1, HHRM130-1,
HHRM200-1, HHRM230-1, HHRM300-1,
HHRM331-1, HHS1181, HHTD1181,
HHWPT1181, HIAI1181, HIAP1181, HICMA1181,
HIMC300-1, HIND1181, HINT1181, HIPLW130-1,
HIPM300-1, HISL130-1, HISM100-1, HISM200-1,
HISM300-1, HIT1181, HLAA130-1, HLGE330-1,
HLLW330-1, HLTX330-1, HLWC1181,
HLWC200-1, HLWC230-1, HLWE230-1,
HLWH1181, HLWI230-1, HLWL200-1,
HLWL300-1, HLWM200-1, HLWP130-1,
HLWS130-1, HMAC200-1, HMAC202-1,
HMAC230-1, HMAC300-1, HMAC330-1,
HMKR1181, HMKT100-1, HMKT1181,
HMKT130-1, HMKT200-1, HMKT230-1,
HMKT300-1, HMKT330-1, HMLW1181,
HNTS201-1, HNTS202-1, HNTS203-1,
HNTS300-1, HODV1181, HPAA200-1, HPAD1181,
HPBM440-1, HPBM441-1, HPBM442-1,
HPBM443-1, HPBM444-1, HPCP440-1,
HPDL230-1, HPFM440-1, HPLM1181,
HPLW230-1, HPLW440-1, HPMK440-1,
HPMK442-1, HPPS1181, HPR1181, HPR200-1,
HPRM1181, HPRM440-1, HPSW200-1,
HPSW230-1, HPSY131-1, HPSY132-1, HPSY231-1,
HPSY232-1, HPSY331-1, HPX100-1, HPXN200-1,
HPXS200-1, HRMB330-1, HRML330-1,
HRMM330-1, HRMS230-1, HRMS331-1,
HSAD300-1, HSAP1181, HSCI1181, HSDJ1181,
HSEC1181, HSEC200-1, HSEM1181, HSFT300-1,
HSHE1181, HSMB1181, HSMS1181, HSOC131-1,
HSOC132-1, HSOC231-1, HSOC232-1,
HSOC331-1, HSOS1181, HSPC230-1, HSPM300-1,
HSPS1181, HSYD100-1, HSYD202-1, HSYD300-1,
HTAX201-1, HTAX202-1, HTAX230-1,
HTAX331-1, HTAX332-1, HTCP300-1, HTDP1181,
HTDS1181, HTDSA1181, HTOP1181, HTSS100-1,
HTTM1181, HWBAC230-1, HWBLW330-1,
HWBMM330-1, HWCACP1171, HWCBMP1171,
HWCGMT1181, HWCHAP1181, HWCHCM1171,
HWCHMP1181, HWCHRM1171, HWCHRP1181,
HWCLSP1171, HWCMDM1181, HWCMP1171,
HWCMSM1181, HWCMSP1181, HWCMTM1181,
HWCTTMP1181, HWDBM300-1, HWDEM300-1,
HWDFA300-1, HWDHR300-1, HWDMM300-1,
HWDPR300-1, HWFM300-1, HYFT1181
FA 1 – Online Quiz Due
6 September 17 23:59 Complete online via ColCampus no later than
48 SemB2021-V2-2021-20042021
17 September 2021 23:59
HASD200-1, HCLT101-1, HCLT102-1, HCLT103-1,
HCLT104-1, HCLT105-1, HPXN301-1, HPXS301-1,
HSYD201-1
9 October 5 17:00 FA 1 - Results Release
10 October 11 13:00 FA 1 - Results Appeal Close
10 October 15 17:00 FA 1 - Results Appeal Release
15 October 2021 23:59. Feedback given in
10 October 15 23:59 Week 12
FA 2 - Assignment Due
12 October 29 23:59 29 October 2021 23:59
HACP130-1, HALT130-1, HANT130-1,
HAUD230-1, HAUD331-1, HAUD332-1,
HBMN130-1, HBMN330-1, HCGA232-1,
HCGE130-1, HCGE231-1, HCGE232-1,
HECO130-1, HENT130-1, HETA231-1,
HFAC334-1, HFMN230-1, HFMN330-1,
HFMN331-1, HHRD130-1, HHRM130-1,
HISL130-1, HLAA130-1, HLGE330-1, HLWP130-1,
HLWS130-1, HMAC230-1, HMAC330-1,
HMKT130-1, HMKT330-1, HPBM440-1,
HPBM441-1, HPBM442-1, HPBM443-1,
HPBM444-1, HPCP440-1, HPFM440-1,
HPLW440-1, HPMK440-1, HPMK442-1,
HPRM440-1, HPSY131-1, HPSY132-1, HPSY331-1,
HRMS331-1, HSOC131-1, HSOC132-1,
HSOC231-1, HSOC232-1, HSOC331-1,
HTAX230-1, HTAX331-1, HTAX332-1,
HWBAC230-1, HWBLW330-1, HWBMM330-1,
HWCACP1171, HWCBMP1171, HWCGMT1181,
HWCHAP1181, HWCHCM1171, HWCHMP1181,
HWCHRM1171, HWCHRP1181, HWCLSP1171,
HWCMDM1181, HWCMP1171, HWCMSM1181,
HWCMSP1181, HWCMTM1181, HWCTTMP1181,
HWDBM300-1, HWDEM300-1, HWDFA300-1,
HWDHR300-1, HWDMM300-1, HWDPR300-1
FA 2 – Online Quiz Due
Complete online via ColCampus no later than
12 October 29 23:59 29 October 2021 23:59
HBMN230-1, HBMN231-1, HBMN232-1,
HBMN331-1, HBMN333-2, HBMN334-1,
HBRD330-1, HCLT101-1, HCLT102-1, HCLT105-1,
HCML330-1, HCMLW230-1, HCONL330-1,
HCYLW230-1, HECO231-1, HECO232-1,
HENT230-1, HENT330-1, HERL230-1, HERL330-1,
HFAC201-1, HFMN233-1, HGPLC230-1,
HGPLD230-1, HHRD230-1, HHRM230-1,
HHRM331-1, HIPLW130-1, HLLW330-1,
HLTX330-1, HLWC200-1, HLWC230-1,
49 SemB2021-V2-2021-20042021
HLWE230-1, HLWI230-1, HMAC200-1,
HMKT230-1, HPDL230-1, HPLW230-1,
HPSW230-1, HPSY231-1, HPSY232-1,
HRMB330-1, HRML330-1, HRMM330-1,
HRMS230-1, HSPC230-1
HPXN302-1 FA1 Online Quiz and
HPXN302-1 Draft Project Proposal Assignment
Due. Submit online via ColCampus no later than
12 October 29 23:59 29 October 2021 23:59.
HPXS302-1 FA1 – Online Quiz Due
12 October 29 23:59 29 October 2021 23:59.
13 November 5 13:00 FA 2 - Results Release
14 November 9 17:00 FA 2 - Results Appeal Close
14 November 12 17:00 FA 2 - Results Appeal Release
SA 1 Time Table for paper-based sit down
exams only (with SA 2).
Accompanying SA 2’s to be submitted online
via ColCampus no later than 23:59 on day that
15 to 17 November 15 - 29 SA 1 is written
15 November 15 09:00-11:00 HBMN201-1, HBMN200-1
12:00-14:00 HPAA200-1, HBMN230-1,
15:00-17:00 HCMLW230-1, HHRM331-1
November 16 09:00-12:00 HFAC132-1, HFAC231-1, HFAC232-1, HFAC332-1
09:00-11:00 HHRM200-1, HADV300-1, HMAC300-1
12:00-14:00 HFAC201-1, HBMN231-1, HFMN302-1
15:00-17:00 HCGE232-1, HADV200-1, HCML330-1
November 17 09:00-12:00 HFAC130-1, HAUD332-1
12:00-14:00 HCYLW230-1, HFAC301-1, HSFT300-1
15:00-17:00 HENT200-1, HFMN330-1, HBMN300-1
November 18 09:00-12:00 HTAX230-1, HTAX331-1
09:00-11:00 HTAX201-1, HTAX202-1, HHRD300-1
12:00-14:00 HEVM200-1, HEVM300-1, HFMN301-1
15:00-17:00 HECO231-1, HECO232-1
November 19 09:00-12:00 HETA231-1, HFAC333-1
09:00-11:00 HPSW200-1, HGPLC230-1, HGPLD230-1
12:00-14:00 HIMC300-1, HLWC230-1, HBMN331-1
15:00-17:00 HAUD200-1, HBLE300-1
16 November 22 09:00-12:00 HFAC331-1
09:00-11:00 HHRM230-1, HBMN333-2
12:00-14:00 HLWM200-1, HPSY231-1, HPSY331-1
15:00-17:00 HENT230-1, HENT330-1
November 23 09:00-12:00 HFAC131-1, HFMN230-1
09:00-11:00 HLWI230-1, HBRD300-1
12:00-14:00 HAPR300-1, HCONL330-1
15:00-17:00 HPR200-1, HERL330-1
November 24 09:00-12:00 HMAC230-1, HMAC330-1, HFAC334-1
09:00-11:00 HMAC200-1, HMAC202-1
12:00-14:00 HPDL230-1, HLWL300-1
15:00-17:00 HRMM330-1, HPSY232-1
November 25 09:00-11:00 HBMN301-1, HERL230-1, HFMN300-1
50 SemB2021-V2-2021-20042021
12:00-14:00 HLLW330-1, HFAC302-1
15:00-17:00 HSEC200-1, HLWE230-1, HRMB330-1
HAUD230-1, HCGA232-1, HAUD331-1
09:00-12:00
November 26 HFMN331-1
09:00-11:00 HRMS230-1, HPLW230-1, HBRD330-1
12:00-14:00 HMKT200-1, HMKT230-1, HLWL200-1
15:00-17:00 HFMN233-1, HBMN334-1
17 November 29 09:00-12:00 HTAX332-1
09:00-11:00 HHRD200-1, HBMN232-1, HLTX330-1
12:00-14:00 HPSW230-1, HLWC200-1, HHRD230-1
15:00-17:00 HSOC231-1, HSPC230-1, HSOC232-1, HSOC331-1
SA 1 Time Table for online exams only.
No SA 2’s to submit.
Please book to sit for these online exams as
soon as you are ready. These exams must be
15 to 17 November 15 - 29 completed within the exam period.
HADV1181, HALP1181, HAPS1181, HBFB1181,
HBMN1181, HBMT1181, HBRD1181, HBTB1181,
HCBB1181, HCLT101-1, HCLT102-1, HCLT103-1,
HCLT104-1, HCLT105-1, HCNM1181, HCOU1181,
HECM1181, HEMK1181, HENT1181, HEVM1181,
HHIVC1181, HHM1181, HHMP1181, HHRF1181,
HHS1181, HHTD1181, HHWPT1181, HIAI1181,
HIAP1181, HICMA1181, HIND1181, HINT1181,
HIT1181, HLWC1181, HLWH1181, HMKR1181,
HMKT1181, HMLW1181, HODV1181,
HPAD1181, HPLM1181, HPPS1181, HPR1181,
HPRM1181, HSAP1181, HSCI1181, HSDJ1181,
HSEC1181, HSEM1181, HSHE1181, HSMB1181,
HSMS1181, HSOS1181, HSPS1181, HTDP1181,
HTDS1181, HTDSA1181, HTOP1181, HTTM1181,
HYFT1181
SA 1 Time Table for open book online exams
with SA 2’s to submit. Please book to sit for
these online exams as soon as you are
ready. These exams must be completed on the
stipulated dates as indicated below. Remember
to upload your SA2 via ColCampus by the
stipulated due date no later than 23:59.
17 November 23 09:00-12:00 HPBM440-1
November 25 09:00-12:00 HPMK440-1
November 29 09:00-12:00 HPBM443-1
SA 1 & SA 2 Time Table for
projects/internship/assignments only.
15 to 17 November 15 - 29 23:59 29 November 2021 23:59
HASD200-1, HBMN330-1, HCGE231-1,
HENT300-1, HHRM300-1, HLGE330-1,
HMKT300-1, HMKT330-1, HPBM441-1,
HPBM442-1, HPBM444-1, HPCP440-1,
HPFM440-1, HPLW440-1, HPMK442-1,
HPRM440-1, HPRM441-1, HPX100-1,
HPXN302-1, HPXS200-1, HPXS302-1,
51 SemB2021-V2-2021-20042021
HRML330-1, HRMS331-1, HSAD300-1,
HSYD201-1, HSYD300-1, HWBAC230-1,
HWBLW330-1, HWBMM330-1, HWCACP1171,
HWCBMP1171, HWCGMT1181, HWCHAP1181,
HWCHCM1171, HWCHMP1181, HWCHRM1171,
HWCHRP1181, HWCLSP1171, HWCMDM1181,
HWCMP1171, HWCMSM1181, HWCMSP1181,
HWCMTM1181, HWCTTMP1181, HWDBM300-1,
HWDEM300-1, HWDFA300-1, HWDHR300-1,
HWDMM300-1, HWDPR300-1
SA 1 Time Table for online exams with SA 2’s to
submit.
completed within the exam period. Remember
to upload your SA 2 on ColCampus by the
15 to 17 November 15 - 29 stipulated due date.
HACP130-1, HADV100-1, HALT130-1,
HANT130-1, HBMN100-1, HBMN102-1,
HBMN130-1, HCGE130-1, HDBP200-1,
HECO130-1, HENT100-1, HENT130-1,
HEVM100-1, HFOA100-1, HHRD100-1,
HHRD130-1, HHRM100-1, HHRM130-1,
HIPLW130-1, HIPM300-1, HISL130-1,
HISM100-1, HISM200-1, HISM300-1, HLAA130-1,
HLWS130-1, HMKT100-1, HMKT130-1,
HNTS201-1, HNTS202-1, HNTS203-1,
HNTS300-1, HPSY131-1, HPSY132-1, HPXN200-1,
HPXN301-1, HPXS301-1, HSOC131-1,
HSOC132-1, HSPM300-1, HSYD100-1,
HSYD202-1, HTCP300-1, HTSS100-1,
HWFM300-1
19 December 14 13:00 SA 1 & 2 Results Release
19 December 17 17:00 SA 1 & 2 Results Appeal Close
20 December 21 13:00 SA 1 & 2 Results Appeal Release
Supplementary SA 1 Time Table for paper-
based sit down exams only (with
Supplementary SA 2).
Accompanying Supplementary SA 2’s to be
submitted online via ColCampus no later than
21 to 22 January 2022 5 - 11 23:59 on day that SA 1 is written
21 January 2022 5 09:00-12:00 HTAX230-1, HETA231-1, HTAX331-1, HAUD332-1
09:00-11:00 HBMN230-1, HBMN300-1
HTAX201-1, HTAX202-1, HLWC230-1,
12:00-14:00
HLWC200-1, HBMN200-1, HBMN334-1
HPAA200-1, HCMLW230-1, HCGE232-1,
15:00-17:00
HADV200-1, HHRM331-1, HSFT300-1
09:00-12:00
January 2022 6 HFAC333-1
HBMN201-1, HENT230-1, HLWI230-1,
09:00-11:00 HENT200-1, HHRM230-1, HFMN330-1,
HADV300-1, HMAC300-1
52 SemB2021-V2-2021-20042021
HFAC201-1, HRMS230-1, HBMN231-1,
12:00-14:00
HCYLW230-1, HFAC301-1, HFMN302-1
HPSW200-1, HEVM200-1, HECO231-1,
15:00-17:00
HENT330-1, HECO232-1, HEVM300-1
HFAC130-1, HFAC131-1, HFMN230-1,
09:00-12:00
January 2022 7 HFAC331-1, HFAC334-1
09:00-11:00 HBMN333-2, HFAC302-1
HPSW230-1, HLWM200-1, HBMN331-1
12:00-14:00 HPLW230-1, HBRD300-1, HERL330-1
HRMB330-1
HHRM200-1, HPR200-1, HLWE230-1,
15:00-17:00 HPSY231-1, HPSY232-1, HAUD200-1, HPSY331-1
22 January 2022 10 09:00-12:00 HMAC230-1, HMAC330-1, HFMN331-1
HMAC200-1, HMAC202-1, HGPLC230-1,
09:00-11:00
HGPLD230-1
HIMC300-1, HHRD200-1, HRMM330-1,
12:00-14:00 HAPR300-1, HHRD300-1, HCML330-1,
HBLE300-1
HMKT200-1, HBMN301-1, HPDL230-1,
15:00-17:00 HMKT230-1, HERL230-1, HFMN233-1,
HFMN300-1, HFMN301-1
HAUD230-1, HCGA232-1, HAUD331-1
09:00-12:00
January 2022 11 HTAX332-1
HSEC200-1, HBMN232-1, HSPC230-1,
09:00-11:00
HHRD230-1, HLTX330-1
HLWL200-1, HSOC231-1, HSOC232-1,
12:00-14:00 HLLW330-1, HCONL330-1, HLWL300-1
HBRD330-1, HSOC331-1
Supplementary SA 1 Time Table for online
exams only. No Supplementary SA 2’s.
21 to 22 January 2022 5 - 11 completed within the exam period.
HADV1181, HALP1181, HAPS1181, HBFB1181,
HBMN1181, HBMT1181, HBRD1181, HBTB1181,
HCBB1181, HCLT101-1, HCLT102-1, HCLT103-1,
HCLT104-1, HCLT105-1, HCNM1181, HCOU1181,
HECM1181, HEMK1181, HENT1181, HEVM1181,
HHIVC1181, HHM1181, HHMP1181, HHRF1181,
HHS1181, HHTD1181, HHWPT1181, HIAI1181,
HIAP1181, HICMA1181, HIND1181, HINT1181,
HIT1181, HLWC1181, HLWH1181, HMKR1181,
HMKT1181, HMLW1181, HODV1181,
HPAD1181, HPLM1181, HPPS1181, HPR1181,
HPRM1181, HSAP1181, HSCI1181, HSDJ1181,
HSEC1181, HSEM1181, HSHE1181, HSMB1181,
HSMS1181, HSOS1181, HSPS1181, HTDP1181,
HTDS1181, HTDSA1181, HTOP1181, HTTM1181,
HYFT1181
Supplementary SA 1 Time Table for open book
online exams with Supplementary SA 2’s to
submit. Please book to sit for these online
exams as soon as you are ready. These exams
53 SemB2021-V2-2021-20042021
must be completed on the stipulated dates as
indicated below. Remember to upload your
Supplementary SA 2 via ColCampus by the
stipulated due date no later than 23:59.
21 January 2022 5 09:00-12:00 HPBM440-1
January 2022 7 09:00-12:00 HPMK440-1
22 January 2022 11 09:00-12:00 HPBM443-1
Supplementary SA 1 & Supplementary SA 2
Time Table for projects/internship/assignments
only. Submit online via ColCampus no later
21 to 22 January 2022 5 - 11 than 11 January 2022 23:59
HASD200-1, HBMN330-1, HCGE231-1,
HENT300-1, HHRM300-1, HLGE330-1,
HMKT300-1, HMKT330-1, HPBM441-1,
HPBM442-1, HPBM444-1, HPCP440-1,
HPFM440-1, HPLW440-1, HPMK442-1,
HPRM440-1, HPRM441-1, HPX100-1,
HPXN302-1, HPXS200-1, HPXS302-1,
HRML330-1, HRMS331-1, HSAD300-1,
HSYD201-1, HSYD300-1, HWBAC230-1,
HWBLW330-1, HWBMM330-1, HWCACP1171,
HWCBMP1171, HWCGMT1181, HWCHAP1181,
HWCHCM1171, HWCHMP1181, HWCHRM1171,
HWCHRP1181, HWCLSP1171, HWCMDM1181,
HWCMP1171, HWCMSM1181, HWCMSP1181,
HWCMTM1181, HWCTTMP1181, HWDBM300-1,
HWDEM300-1, HWDFA300-1, HWDHR300-1,
HWDMM300-1, HWDPR300-1
Supplementary SA 1 Time Table for online
exams with Supplementary SA 2’s to submit.
completed within the exam period. Remember
to upload your SA 2 on ColCampus by the
21 to 22 January 2022 5 - 11 stipulated due date.
HACP130-1, HADV100-1, HALT130-1,
HANT130-1, HBMN100-1, HBMN102-1,
HBMN130-1, HCGE130-1, HDBP200-1,
HECO130-1, HENT100-1, HENT130-1,
HEVM100-1, HFOA100-1, HHRD100-1,
HHRD130-1, HHRM100-1, HHRM130-1,
HIPLW130-1, HIPM300-1, HISL130-1,
HISM100-1, HISM200-1, HISM300-1, HLAA130-1,
HLWS130-1, HMKT100-1, HMKT130-1,
HNTS201-1, HNTS202-1, HNTS203-1,
HNTS300-1, HPSY131-1, HPSY132-1, HPXN200-1,
HPXN301-1, HPXS301-1, HSOC131-1,
HSOC132-1, HSPM300-1, HSYD100-1,
HSYD202-1, HTCP300-1, HTSS100-1,
HWFM300-1
23 January 2022 20 17:00 Supplementary SA 1 & 2 Results Release
24 January 2022 25 13:00 Supplementary SA 1 & 2 Results Appeal Close
24 January 2022 28 17:00 Supplementary SA 1 & 2 Results Appeal Release
54 SemB2021-V2-2021-20042021
ANNEXURE E: PLAGIARISM INFORMATION SHEET
INFORMATION SHEET: PLAGIARISM
This document serves as a source of information regarding the nature of

plagiarism, why it is important to avoid, and how to ensure that you do not commit
plagiarism.
Definition
Plagiarism is the reproduction of somebody else’s work or ideas, and presenting it as your
own without giving recognition to that person (Larney, 2012:5). Any piece of work that you
present under your own name must indeed be your own. If you used someone else’s
ideas or words without citing that person’s work, you have committed plagiarism.
Importance
If you have used someone else’s words or ideas in your work without giving them due
credit, that amounts to you presenting that person’s ideas as your own (AAUP, 2015:6).
This affects the academic integrity of your work, and can also be considered an
infringement on the copyright of the author whose work you used. It is therefore very
important to avoid plagiarism when you present academic work.
Examples
Plagiarism comes in many forms and is not limited to the direct quotation of another
person’s work without giving him credit. The most important cases of plagiarism are set
out below:
Plagiarism of Ideas
Definition: Appropriating an idea (e.g. an explanation, a theory, a conclusion, a

hypothesis, a metaphor) in whole or in part, or with superficial modifications,
without giving credit to its originator (Roig, 2011:4)
Example: Original text: “Customer involvement is a fairly novel phenomenon in

the marketplace. By involving customers in the service delivery process, innovation
and productivity is improved.” (Axcell et al, 2015:217)
55 Plagiarism Info Sheet-CP-V1-15072020

Plagiarism of idea: “If one involves customers in the process of service delivery,
this generally increases innovation and productivity – even though this idea is still
a relatively new and foreign one in the marketplace.”
This is plagiarism because the idea of Axcell et al was taken directly without
providing a reference to their work. The plagiariser only changed “novel idea” to “a
relatively new and foreign idea” to his own version – but this does not represent
his own thoughts. It is the idea of Axcell et al written in a slightly different way.
This can be corrected by adding a reference to the source into work. For
example: “If one involves customers in the process of service delivery, this
generally increases innovation and productivity – even though this idea is still a
relatively new and foreign one in the marketplace (Axcell et al, 2015:217).
Plagiarism of Text
Definition: Copying a portion of text from another source without giving credit to
its author and without enclosing the borrowed text in quotation marks (Roig,
2011:6).
Example: Original text: “The period from 1652 to 1870 was characterized by
colonial settlement and slavery. 1870 – 1924 bought the discovery of gold and
diamonds, limited trade unionism, industrialization and oppression of black
workers. From 1924-1956 the Industrial Conciliation Act was promulgated which
created dispute settlement mechanisms through establishing industrial councils.”
(Thompson, 2015: 94).
Plagiarism of text: The period from 1652 to 1870 was characterized by colonial
settlement and slavery. 1870 – 1924 bought the discovery of gold and diamonds,
limited trade unionism, industrialization and oppression of black workers.
This is plagiarism because you are quoting the work of Thompson directly without
putting it in between quotation marks, and without providing a reference to his
work.

This can be corrected by adding a reference to the source into the text and
placing the sentence in between quotation marks. For example: “The period from
1652 to 1870 was characterized by colonial settlement and slavery. 1870 – 1924
bought the discovery of gold and diamonds, limited trade unionism,
industrialization and oppression of black workers” (Thompson, 2015: 94).
Plagiarism by Improper Paraphrasing
Definition: Taking portions of text from one or more sources, paraphrasing what
was said, and then adding some of your own ideas to that text to pass the entire
thought off as your own. (Roig, 2011:7).
Example: Original text: “The entrepreneur has to be sensitive to opportunities or

problems arising in the business or outside. This awareness is the stimulus for
creative ideas. It is also important that one should have clarity concerning the
nature of the problem in order to develop a creative solution. Therefore, it is of
utmost importance to define the problem clearly.” (De Beer et al., 2008, 168)
Plagiarism by improper paraphrasing: It is important for an entrepreneur to be

sensitive to opportunities as well as problems that occur inside or outside the
business. Such awareness will allow him to come up with creative ideas. Therefore
it is important to pursue the continuous generation of creative ideas.
This is plagiarism because you merely rephrasing the idea of De Beer et al. and
then adding your own sentence to that, without giving reference to the authors for
the first part of your text.
This can be corrected by adding a reference to the source after the first part of
this paragraph. For example: “It is important for an entrepreneur to be sensitive to
opportunities as well as problems that occur inside or outside the business. Such
awareness will allow him to come up with creative ideas” (De Beer et al., 2008:
168). Therefore it is important to pursue the continuous generation of creative
ideas.

Tips to avoid plagiarism:
1) Ensure that you understand the source that you are using and the ideas that it is
trying to convey. A good rule of thumb is that if you can repeat what you have read
in your own words, you most likely have a good understanding of that work. And if
you can do that – you can be sure that you are writing your own ideas.
2) Refer to a few sources (or at least more than one) before starting to write your own
work. This allows you to develop your own thoughts and opinions on the subject
matter.
3) Be sure to cite every source that you use. When you are collecting sources, ensure
that you have all the relevant detail for the source that you need to cite it correctly
– refer to the referencing guide in this regard
4) Use quotation marks around text that you have taken directly from an original
source.
5) Always include a list of references at the end of your work, with the relevant detail
of all the sources you referred to in your text.
6) Read and edit your work to make sure that you can confidently present it as your
own words and ideas.
Useful sources if you want more information on plagiarism
UT-Austin Academic Integrity “A Brief Guide to Avoiding Plagiarism” (2012) Available

at: [http://www.utexas.edu/cola/cwgs/_files/pdf-4/ai2012.pdf]
The Harvard Method of Referencing: A Beginners Guide available in the Library

Module on ColCampus.

LIST OF REFERENCES:
AAUP 2015. Policy Documents and Reports 11ed. Baltimore: Johns Hopkins
University Press.
Axcell S., Benedict E., Pria S.D., Kharsany K., Meyer S., Williams S.J. 2015.
Marketing Management 3. Cape Town: EDGE Learning Media.
De Beer A.A., Zeelie D., Groenewald H., Watson H., Rossouw D., Jacobs H. 2008.
Entrepreneurial Skills. Cape Town: Juta and Co Ltd.
Larney, T. 2012 NWU Referencing Guide. Potchefstroom: North-West University

Library Services.
Roig, A. 2011. Avoiding Plagiarism, Self-Plagiarism, and Other Questionable

Writing Practices: A Guide to Ethical Writing. ORI. Available at:
[http://ori.hhs.gov/avoiding- plagiarism-self-plagiarism-and-other-questionable-
writing-practices-guide-ethical- writing. Last accessed: 9/11/2015]
Thompson, D. 2015 Company Law 2. Cape Town: EDGE Learning Media.

ANNEXURE F: FORMATIVE ASSESSMENT 1
HIGHER EDUCATION PROGRAMMES
Academic Year 2021: July - December
Formative Assessment 1: Application of Financial Management

NQF Level, Credits: 7, 14
Weighting: 15%
Assessment Type: Open Book
Examiner: E. Slabbert
Educator: E. Slabbert
Due Date: 17 September 2021
Total: 100 marks
Instructions:
• This paper consists of 3 questions.

• It is based upon units 1 - 4 (Chapters 5, 8, 9 & 10) of your study guide.
• All of the questions are compulsory.
• Attach a plagiarism document to your script.
• Show all calculations.
• The SAICA Competency Framework Reference at the end of a question is

for recordkeeping and will inform you which SAICA Competency is
covered in the question.
60 HFMN331-1-Jul-Dec2021-FA1-V3-ES-25052021
QUESTION 1 (37 marks)
TinTin Ltd (“TinTin”) is a canned food manufacturer located in Johannesburg,

Gauteng. TinTin manufactures foods such as canned beans, canned corn and various
others. Once manufactured, the products are sold to wholesalers and grocery stores
nationwide.
Below is TinTin’s finalised and audited financial statements for the 31 May 2021-
financial year end:
TinTin Ltd
Statement of Financial Position as at 31 May 2021
2021 2020
Rm Rm
ASSETS
Non-Current Assets
Property, plant and 2 451 1 983

equipment
Total Non-Current 2 451 1 983

Assets
Current Assets
Inventories 579 501
Receivables 138 122
Cash and bank 93 86
Total Current Assets 810 709
Total Assets 3 261 2 692
EQUITY AND
LIABILITIES
Equity
Share capital 990 990
Retained earnings 1 264 980
Total equity 2 254 1 970
Non-Current Liabilities
Long-term borrowings 676 593
Total Non-Current 676 593

Liabilities
Current Liabilities
Trade and other payables 244 106
Short-term borrowings 87 23
Total current liabilities 331 129
Total Equity and 3 261 2 692

Liabilities
Market price per share 3.5 2.7
Number of shares in issue 990 990
TinTin Ltd
Statement of Changes in Equity for the year ended 31 May 2021
Retained earnings
2021 2020
Rm Rm
Opening balance 980 786
Profit for the year 366 274
Dividends (82) (80)
Closing balance 1 264 980
TinTin Ltd
Statement of Comprehensive Income
2021 2020
Rm Rm
Sales income 1 301 1 114
(Cost of sales) (439) (405)
Gross profit 862 709
(Selling and marketing (31) (28)

expenses)
(Administration expenses) (15) (14)
(Other operating (241) (227)

expenses)
Profit before interest 575 440

and tax expenses
(Finance costs) (67) (59)
Profit before tax 508 381

expense
(Income tax expense) (142) (107)
Profit for the year 366 274
Earnings per share 0.37 0.28
Dividend per share 0.08 0.08
Required:
1.1. Calculate the following financial ratios for TinTin Ltd as at 31 May 2020 and
2021:
• Current asset ratio
• Quick asset ratio
• Inventory turnover
• Average collection period
• Total asset turnover
• Debt ratio
• Debt-Equity ratio
• Gross Profit Margin
• Return on Assets (ROA)
• Return on Equity (ROE)
• Dividend yield
• Earnings yield
• Price-earnings (P/E) ratio
• Dividend cover
(30 marks)
1.2.1. Compare the 2020 and 2021 financial years’ Quick asset ratios.
(3 marks)
1.2.2. Comment and advise on the 2021 Current and Quick asset ratios.
(4 marks)
Round to two decimals where required and show all calculations.
SAICA competencies:
Analyses the entity’s current financial situation and considers factors

V-2.1
impacting on the future outlook of the entity
Performs financial analysis, interprets the results, and draws conclusions
as to the entity’s present and forecasted financial situation, including
– ratio analysis, trend analysis, cash flow analysis
V-3.2 Analyses the entity’s working capital

Develops strategies and monitors the entity’s working capital, including –
accounts receivable management, accounts payable management,
inventory management
V-3.5 Evaluates the entity’s cost of capital and capital structure

Evaluates the capital structure of an entity (quantitatively and qualitatively)
Develops and evaluates risk management policies related to financial

V-4.1 risk
Develops and evaluates risk management policies that relate specifically
to financial risk (e.g., hedging policy, investment policy, and insurance
coverage), so that policies are consistent with the entity’s overall risk
management policies
Monitors exposure in order to manage the level of these financial risks
V-7 Identifies or advises a financially troubled business

Identifies a financially troubled business
Examines the possible courses of action to rectify the situation
IA Ethical Behaviour and Professionalism

IA-1 Uses an ethical reasoning process
IA-2 Protects the public interest
Performs work competently and with due care
IA-4
IB Personal Attributes
IB-2 Demonstrates responsible leadership
IB-3 Maintains and demonstrates competence and recognises limits
IB-4 Strives to add value in an innovative manner
IB-5 Manages change

IB-7 Is a life-long learner
IC Professional Skills
IC-1.1 Gathers or develops accurate and relevant information and ideas

IC-1.2 Develops an understanding of the entity’s environment
IC-2.1 Analyses information or ideas
IC-2.2 Performs computations
IC-2.4 Evaluates information and ideas
IC-2.6 Draws conclusions / forms opinions
IC-3.1 Identifies and diagnoses problems and/or issues
IC-3.2 Develops solutions
IC-3.3 Makes decisions and recommendations and provides advice
IC-4.2 Prepares documents in written and graphic form
Presents information effectively to enhance understandability and
IC-4.3 usefulness
Beautiful Ltd (“Beautiful”) is a cosmetic house which develops, manufactures and sells
cosmetics and skincare products.
All products are divided and sold under the various product lines.
Currently, Beautiful is considering to include a new skincare product line, “Revitalise”,

as one of their products. Revitalise is a skincare line which focuses on the older client
base and mature skin.
In order to manufacture Revitalise, Beautiful will have to purchase a new machine

(“Machine X”).The machine has a cost price of R320 000 and will be depreciated over
a period of 5 years according to the straight-line method. Machine X will also qualify
for section 12C wear-and-tear deductions according to which 40% may be deducted
in the first year and 20% each year thereafter. Beautiful will elect the straight-line
method for the income tax deduction purpose. Machine X will be sold off after 4-years
at which point it will have a residual value of R110 000. Machine X has an annual
capacity to manufacture 50 000 units which will be fully utilised by Beautiful.
As an alternative to Revitalise, Beautiful can opt to rather invest in a product line

(“Glow”) for teenage skins. Should Beautiful choose Glow, a second-hand
manufacturing machine (“Machine Z”) will be bought for R200 000. In line with
Beautiful depreciation-policy for machinery, Machine Z will also be depreciated over 5
years on the straight-line method. A 20% per annum section 12C wear-and-tear
deduction will apply according to which Beautiful will elect the straight-line method. At
the end of 5 years, all the benefits for Machine Z will have been obtained and Machine
Z will have no sell-off or scrap value. During the 5 years of use, Machine Z will however
be able to deliver 47 000 units per annum for Beautiful to meet the market demand.
Below is the cost and selling prices of the two product lines:
Revitalise Glow
Cost price per unit R180 R75
Selling price per unit R200 R150
For both product lines, the investment in working capital (which will be 12% of the
annual sales) will take place at the beginning of the year and remain at this level for
the years thereafter. Only at the end of the second last year of both product lines, will
it be decreased to 7%. Assume that any remaining working capital balance will be
recovered in the last year and will not affect the any tax charges.
Currently, Beautiful’s existing product lines are generating before-tax operating cash
flows of R66million per annum which will be maintained in the future.
Beautiful’s cost of capital is 11.5%.
Assume an income tax rate of 28% for companies.
Required:
Advise Beautiful Ltd whether they should invest in Revitalise or Glow by making use
of the NPV analyses.
(46 marks)
Round to two decimals where required.
SAICA competencies:
V-2.3 Estimates the value of the business

Using different valuation methods, analyses, calculates, estimates and
forecasts a plausible range of values for a business for review and input by
others, using –
transaction-based approaches, e.g. discounted cash flow and relationship
thereof to EVA and MVA
V-6.1 Evaluates the investment decision
Identifies and analyses the opportunities (including the growth strategies of

the entity), risks, financial and sustainability implications of a proposed
start-up or expansion involving the replacement or acquisition of a capital
asset, including qualitative and quantitative considerations
Applies appropriate capital budgeting techniques in the analysis of the

investment decision, and adequately considers the following issues:
Differing project life cycles, Capital rationing, Possibility of abandonment
or expansion, Impact of inflation, Analysis of and allowance for risk,
including the use of probabilities and consideration of appropriate discount
rate, Key variables affecting the value of the investment, including the
performance of sensitivity analysis and application of equivalent annual
annuities, etc., Key variables impacting on foreign capital investment
decisions

IA-4

IC-4.3 usefulness
Knives & Forks Ltd (“K&F”) is a South African restaurant chain group with restaurants
throughout the country.
An opportunity arose for K&F to open up either a restaurant in the Eastern Cape or
the Free State. K&F however only have enough finance sources available to open one
of the two options and accordingly, they are mutually exclusive.
Both options have an initial investment (cost) of R7 million.
K&F has performed research in regard to the possible cash flows to be generated from
both restaurants based on different success rates. Below is the research findings:
Eastern Cape Free State
Success Probability Cash flow Success Probability Cash flow
Poor 15% R1 million Poor 15% R900 000
Average 50% R14 million Average 45% R12 million
Exceptional 35% R22 million Exceptional 40% R18 million
The standard deviation for the Eastern Cape is R3.3 million and R2.1million for the
Free State.
K&F applies a discount rate of 9.1% to investment options with a co-efficient of

variation 0.2 and below. Thereafter, 2% is added to the discount rate for every 0.1
incremental part.
Required:
3.1. Calculate the expected value of each investment option (i.e., Eastern Cape and
Free State).
(6 marks)
3.2. Calculate the co-efficient of variation (CV) for each investment option.
(4 marks)
3.3. Calculate the NPV of each project assuming K&F applies a risk-adjusted
discount rate.
Assume both restaurants have an estimate lifespan of 20 years.
(7 marks)
SAICA competencies:

V-2.1

Identifies and analyses the opportunities (including the growth strategies
of the entity), risks, financial and sustainability implications of a proposed
including the use of probabilities and consideration of appropriate
discount rate, Key variables affecting the value of the investment,
including the performance of sensitivity analysis and application of
equivalent annual annuities, etc., Key variables impacting on foreign
capital investment decisions

IA-4
Is a life-long learner
IB-7

IC-4.3 usefulness
ANNEXURE G. SAMPLE FORMATIVE ASSESSMENT 1
Sample Formative Assessment 1: Application of Financial Management

Weighting: 15%
Due Date: Sample
Total: 100 marks
Instructions:

• It is based upon units 1 - 4 (Chapters 5, 8, 9 &10) of your study guide.

73 HFMN331-1-Jul-Dec2021-SAMPLE FA1-V3-ES-25052021
LipChip Ltd (“LipChip”) is a South African savoury treats manufacturer best known for
their chips as this was the initial product range of the entity when the entity was
established 11 years ago.
LipChip’s various products are sold nationwide to external parties such as various
grocery shops, café’s, street merchants, etc. which in turn sells them to the public.
Recently, LipChip has been brainstorming and working on a new type of chip range to
possibly include as one of their products.
Developing possible new products and flavours is something LipChip constantly

engages in, in order to stay popular in the market and increase both their market size
and overall profit and shareholder value.
The recent new chip which LipChip has been developing is called “Relax”. What
distinguishes Relax from LipChip’s other established savouries is both the taste and
type. Relax are low-budget chips which will be sold at a low selling price per unit. The
aim of this is to generate a high overall revenue through the quantity sold (rather than
the price). As the selling price is low, it is especially aimed at informal events such as
when consumers want to snack on something.
Before investing in a new product, LipChip always first tests it in the market to
determine the possible financial success of it.
LipChip has already manufactured a small quantity of Relax for R300 000 which will
be sold as a pilot test in the market for a year. Based on historic knowledge of low-
budget chips and current market opportunity for such a product, there is an 85%
chance of Relax’s pilot launch indicating success. To launch and perform the pilot test,
R1 511 000 expenses will be required. If not successful with the market, LipChip will
immediately stop with any further manufacturing plans of Relax. But if successful,
LipChip will allocate employees, machinery and time specifically to the manufacturing
of Relax. This will cost LipChip R1 450 000.
Thereafter, LipChip will start selling Relax as one of their standard products to the
market. If above average success with the market and a high revenue is generated
from Relax, which is 35% probable, R3 900 000 per annum will be generated in the
first two years and R7 800 000 per annum thereafter for the next 8 years before Relax
will be re-evaluated for continuality. Should Relax have an average popularity rate with
the public, R1 790 000 per year will be generated in the first 3 years and R5 900 000
per year in the following 7 years.
LipChip has a weighted average cost of capital (WACC) of 10%.
Required:
By making use of a decision tree, evaluate and advise whether LipChip should
continue with the launch of Relax.
(38 marks)
Round to the closest Rand where required.
SAICA competencies:
V-1.1 Understands financial objectives

Gains an understanding of the financial objectives that form part of the
entity’s finance strategy in the light of the entity’s overall objective, vision,
mission and mandate
Gains an understanding of the inter-relationship of the financial objectives
with the other resources and capitals which impact on the entity’s business
model

the entity), risks, financial and sustainability implications of a proposed start-
up or expansion involving the replacement or acquisition of a capital asset,
including qualitative and quantitative considerations

decisions

IA-4 Performs work competently and with due care

IC-4.3 usefulness
Hike & Bike Ltd (“Hike & Bike”) is an outdoor equipment supplier with distributors
throughout South Africa. Hike & Bike is listed on the Johannesburg Stock Exchange
(JSE)’s AltX market. Their 28 February 2021-financial year’s annual financial
statements have just been audited, finalised and issued for public viewing.
Below are the 2021 audited financial statements you obtained from Hike & Bike’s
website:
Hike & Bike Ltd
Statement of Financial Position as at 28 February 2021
2021 2020
R’000 R’000
ASSETS
Non-Current Assets
Property, plant and equipment 16 996 18 032
Total Non-Current Assets 16 996 18 032
Current Assets
Inventories 2 962 5 823
Receivables 117 4 720
Cash and bank 9 825 6 986
Total Current Assets 12 904 17 529
Total Assets 29 900 35 561
EQUITY AND LIABILITIES
Equity
Ordinary shares capital 5 100 5 100
Retained earnings 13 700 11 890
Total equity 18 800 16 990
Long-term borrowings 8 046 12 385
Total Non-Current Liabilities 8 046 12 385
Current Liabilities
Trade and other payables 1 369 1 087
Short-term borrowings 1 685 5 099
Total current liabilities 3 054 6 186
Total Equity and Liabilities 29 900 35 561
Market price per share 14 11.2
Number of shares in issue 2 550 2 550
Hike & Bike Ltd
Statement of Changes in Equity as at 28 February 2021
Retained earnings
2021 2020
R’000 R’000
Opening balance 11 890 10 473
Profit for the year 2 915 2 341
Dividends (1 105) (924)
Closing balance 13 700 11 890
Hike & Bike Ltd
Statement of Comprehensive Income for the year ended 28 February 2021
2021 2020
R’000 R’000
(Cost of sales) (4 502) (4 022)
Gross profit 9 479 8 237
(Selling and marketing expenses) (1 564) (1 051)
(Other operating expenses) (2 753) (2 011)
Profit before interest and tax 4 827 4 878

expenses
(Finance costs) (1 090) (1 877)
Profit before tax expense 3 737 3 001
(Income tax expense) (822) (660)
Profit for the year 2 915 2 341
Earnings per share 1.14 0.92
Dividend per share 0.43 0.36
You are a financial investor and possibly interested in investing in Hike & Bike.
Required:
2.1. Perform a Du Pont analysis on the 2020 and 2021 financial years’ figures and
comment on them.
(32 marks)
2.2. Explain what a Return on Asset (ROA) figure means and calculate Hike & Bike
Ltd’s 2021 financial year ROA.
(2 marks)
Round to two decimal places where required.
SAICA competencies:

V-2.1
Performs financial analysis, interprets the results, and draws conclusions as
to the entity’s present and forecasted financial situation, including – ratio
analysis, trend analysis, cash flow analysis


Evaluates the capital structure of an entity (quantitatively and qualitatively)

V-4.1 risk
Develops and evaluates risk management policies that relate specifically to
financial risk (e.g., hedging policy, investment policy, and insurance
coverage), so that policies are consistent with the entity’s overall risk
management policies
V-7 Identifies or advises a financially troubled business

Identifies a financially troubled business
Examines the possible courses of action to rectify the situation

IA-1 Uses an ethical reasoning process
IA-2 Protects the public interest

IA-4
IB-4 Strives to add value in an innovative manner
IB-5 Manages change

IC-3.2 Develops solutions
IC-4.3 usefulness
Mr. Raymond Klein is a savvy businessman and entrepreneur who owns his own
entity, Growth (Pty) Ltd. He recently came across a business opportunity which entails
him opening up a family restaurant in Durbanville, Western Cape. Mr. Klein will start-
up and grow the restaurant for a period of 4 years before selling it at a large profit due
to the aimed growth.
This will be done by Growth (Pty) Ltd taking on the investment in the family restaurant
as a project for the 4-year period.
Initially Mr. Klein will have to invest R3 100 000 into starting up the restaurant.
R2 000 000 of the R3 100 000 is to buy the building in which the restaurant will trade.
The building will qualify for a section 13 quin Income Tax deduction of (5% x 55%) per
year. R 1 000 000 of the R3 100 000 will be utilised to purchase equipment which will
qualify for section 11 (e) of the Income Tax Act for wear-and-tear deduction on the
straight-line basis over 6 years. The remaining R100 000 of the R3 100 000 is for other
start-up related expenses which will be allowed to be fully deducted when incurred at
the start of the business.
An accounting policy will be adopted to depreciate assets on the straight-line method

over the following periods:
Buildings 25 years
Equipment 5 years
Mr. Klein made a projection of the amount of cash he will generate each of the 4 years:
R358 000 in the first year, R451 200 in the second year, R536 000 in the third year
and R679 000 in the fourth year. When he made the projected cash flows, he used
the current prices of cash expenses he will need to incur as well as current menu
prices at which the food will be sold to generate income. In the fourth year, the
restaurant will be sold for an estimated R2 400 000 based on future prices.
Growth (Pty) Ltd has a weighted average cost of capital (WACC) of 10.5%.
Assume a companies’ Income Tax rate of 28%.
The inflation rate is 2.1%.
Required:
Evaluate and advise whether or not Mr. Klein should accept the project.
You may ignore any possible recoupment and capital gain tax consequences for this
question.
(28 marks)
Round to the closest Rand where required.
SAICA competencies:

others, using –
transaction-based approaches, e.g., discounted cash flow and relationship

decisions


Is a life-long learner
IB-7

IC-4.3 usefulness
ANNEXURE H. SAMPLE FORMATIVE ASSESSMENT 1: MEMORANDUM

MEMORANDUM
Academic Year 2021: July – December
Sample Formative Assessment 1: Application of Financial Management

Weighting: 15%
Due Date: Sample
Total: 100 marks

Instructions:

• It is based upon units 1 - 4 (Chapters 5, 8, 9 &10) of your study guide.

85 HFMN331-1-Jul-Dec2021-SAMPLE FA1-MEMO-V3-ES-25052021
NB. Notes to grader:
• Throughout the paper, award full marks for the question when the
student’s final answer is correct. Otherwise mark with calculations as
indicated.
• NB! Throughout the question paper, in an answer, if a student added
addition amounts, award marks for the correct calculations but , e.g., if a
student was required to write “800 - 200” (for one mark each, i.e., total of
2 marks) and they wrote “800 – 200 – 50”, only award the mark for the
“800” as the student effectively “- 250” which is incorrect.
Thus, if additional amounts were added in calculations, deduct 1 or a half
mark (depending on which is relevant).
© Award mark based on students’ previous calculation.
Note to grader:
To award the mark, student had to indicate the correct + / - sign with amount.
 
YR 1 – 2: YR 3 – 10:
R3.9m per year R7.8m p.a.


Above average (35%)
½ ½
Test pilot: Success (85%) Invest: ½
-R1 511 000 -R1 450 000
Average (65%)
Fail (15%) YR1 – 3: YR4- 10:
½ R1.79m p.a. R5.9m p.a.

Stop   
 For overall layout and tidiness of decision tree’s structure.
Note: The R300 000 has already been incurred /cannot be avoided. Thus, it is a
sunk cost.
CONDITION NPV JOINT ESTIMATED NPV

PROBABILITY
Above average R34 588 117 (W1) 29.75% (W2) R10 289 965(W3)
Average R20 836 258 (W4) 55.25% (W5) R11 512 033 (W6)
Fail -R1 511 000 15% - ½ R226

650½©
(W7)
100% R21 575 348
(W1)
CF0 = -R1 511 000
CF1 = -R1 450 000
CF2 =+R3 900 000½
CF3 = +R3 900 000½
CF4 =+R7 800 000½
CF5 =+R7 800 000½
CF6 =+R7 800 000½
CF7 =+R7 800 000½
CF8 =+R7 800 000½
CF9=+R7 800 000½
CF10=+R7 800 000½
CF11=+R7 800 000½
I =10%
NPV =R34 588 117
(W2)
35% x 85% = 29.75% (0.2975)
(W3)
29.75%© x R34 588 117© =R10 289 965
(W4)
CF0 = -R1 511 000
CF1 = -R1 450 000
CF2 =+R1 790 000½
CF3 = + R1 790 000½
CF4 =+ R1 790 000½
CF5 =+R5 900 000½
CF6 =+R5 900 000½
CF7 =+R5 900 000½
CF8 =+R5 900 000½
CF9=+ R5 900 000½
CF10=+ R5 900 000½
CF11=+ R5 900 000½
I =10%
NPV =20 836 258
(W5)
65%  x 85% = 55.25% (0.5525)
(W6)
55.25%© x R20 836 258© = R11 512 033
(W7)
15% x - R1 511 000  = - R226 650
Conclusion:
LipChip should continue with the launch of Relax as the overall expected NPV is
R21 575 348 and above zero.©
Reference:
• Chapter 10 pages 10-8 – 10-11.
Learning Outcomes:
• Understand the use of probability distributions and expected values in risk

assessment.
• Determine how sensitive the net present value is to changes in key variables
such as pricing, volumes, variable costs and the discount rate.
• Measure the effect on a project’s returns of a set of specific scenarios.
• Use decision trees to evaluate projects which involve sequential decisions.
Note to grader:
If student’s answer differs with a decimal or two, the mark may still be awarded
as this is due to rounding differences.
2.1. (32 marks)
2020:
Net profit margin = Net profit / Sales x 100
= (R2 341 000 / R12 259 000) x 100
= 19.1%
2021:
Net profit margin = Net profit / Sales x 100
= (R2 915 000 / R13 981 000) x 100
= 20.85%
The net profit margin increased © from 19.1% in 2020 ½© to 20.85% in 2021.
½©
2020:
Total asset turnover = Sales / Total assets
= R12 259 000 / R35 561 000
= 0.34 times
2021:
Total asset turnover = Sales / Total assets
= R13 981 000 / R29 900 000
= 0.47 times
The total asset turnover increased /fastened © from 0.34 times in 2020½© to
0.47 times in 2021.½©
2020:
Return on Assets (ROA) = Net profit margin x Total asset turnover
= 19.1% © x 0.34©
= 6.49%
2021:
Return on Assets (ROA) = Net profit margin x Total asset turnover
= 20.85%© x 0.47 ©
= 9.80%
The return on assets increased© from 6.49% in 2020½© to 9.8% in 2021.½©
2020:
Financial leverage multiplier = Total assets / Ordinary equity
= R35 561 000 /R5 100 000
= 6.97
2021:
Financial leverage multiplier = Total assets / Ordinary equity
= R29 900 000 /R5 100 000
= 5.86
The financial leverage multiplier lowered© from 6.97 in 2020½© to 5.86 in

2021.½©
2020:
Return on equity (ROE) = ROA x Financial leverage multiplier
= 6.49%© x 6.97 ©
= 45.24%
2021:
Return on equity (ROE) = ROA x Financial leverage multiplier
= 9.8%© x 5.86©
= 57.43%
The return on equity increased© from 45.24% in 2020½© to 57.43% in

2021.½©
2.2. (2 marks)
• Return on Asset-figure means how much Rands of net profit the entity
generated per R1(each Rand) of assets. 
• Bike & Hike Ltd. generated R0.10’s net profit per R1 (each Rand) of total
assets they have.©
Reference:
• Chapter 5 pages 5-15 - 5-27.
Learning Outcomes:
• Outline the various reports used to communicate financial information to

stakeholders.
• Identify the objectives of financial statement analysis.
• Calculate and interpret commonly used financial ratios.
• Draw up a Du Pont analysis and interpret a structured financial analysis.
Note to grader:
Students had to use the correct + / -sign & include in correct year, to receive
the mark.
Year 0 Year 1 Year 2 Year 3 Year 4
(R) (R) (R) (R) (R)
Investment -½3 100

000½
Earnings** +365 518 +470 350 +570 482 +737 858
(W3) (W4) (W5) (W6)
Selling inflow + ½ 2 400

000½
Tax +½28 000 -½ -½ 69 -½ 97 668 -½ 816

40 278 631 533
½© ½©
½© ½© ½©
Cash flows -3 072 000 +325 240 +400 719 +472 814 +2 321 325
** Note: As the earnings’ net cash flows are projected /given at current prices, it
implies that inflation for the future has not been taken into account in projecting
them. They are thus real cash flows.
The WACC of entities is a nominal rate (i.e., inflation is taken into account). The
WACC is to be used to discount the cash flows. Yet there is a mismatch as the cash
flows are in real terms and the discount rate in nominal terms.
Consequently, the relevant real cash flows (i.e., earnings’ net cash flows) have been
converted to nominal cash flows by taking inflation into account.
CF0 =-3 072 000 ½©
CF1 = +325 240 ½©
CF2 =+400 719 ½©
CF3= +472 814 ½©
CF4=+2 321 325 ½©
I = 10.5% 
NPV = CPT
=- R542 057
Tax Year 0 Year 1 Year 2 Year 3 Year 4
(R) (R) (R) (R) (R)
Building -55 000 -55 000 -55 000 -55 000
Wear-and- (W1) (W1) (W1) (W1)

tear
Equipment -166 667 -166 667 -166 667 -166 667
Wear-and- (W2) (W2) (W2) (W2)

tear
Start-up -½
expenses 100 000
½
Earnings +365 518 +470 349 +570 482 +737 858
½© ½© ½© ½©
(W3) (W4) (W5) (W6)
Selling +2 400
inflow 000 ½
Cash flows -100 000 +143 851 +248 682 +348 815 +2 916 191
@28% -28 000 +40 278 + 69 631 +97 668 +816 533
(W1) R2 000 000 ½ x (5%½ x 55%½) = R55 000
(W2) R1 000 000½ / 6 years½ =R166 667
(W3) PV = -358 000 ½
I = 2.1% 
N =1 ½
FV = CPT
= +365 518
(W4) PV = -451 200 ½
I = 2.1% ½
N =2 ½
FV = CPT
= +470 349
(W5) PV = -536 000½
I = 2.1% ½
N =3 ½
FV = CPT
= +570 482
(W6) PV = -679 000 ½
I = 2.1% ½
N =4 ½
FV = CPT
= +737 858
Conclusion:
The NPV of the project is negative (NPV>0) as it is – R542 057.
Mr. Klein should therefore reject the project.
Reference:
• Chapter 9 pages 9-5 – 9-7.

• Chapter 8 pages 8-16 – 8-26.
Learning Outcomes:
• Understand the importance of cash flows rather than accounting earnings in

the evaluation of investment projects.
• Apply and explain the techniques used to evaluate capital projects.
• Determine the relevant cash flows to include in the analysis.
• Take into account the tax implications and the effects of tax allowances on the
investment decision.
• Understand the effect of inflation on the capital budgeting decision.
• Adjust for inflation in selecting the discount rate or calculating future cash
flows.
ANNEXURE I: FORMATIVE ASSESSMENT 2
Formative Assessment 2: Application of Financial Management

Weighting: 15%
Due Date: 29 October 2021
Total: 100 marks
Instructions:

• It is based upon units 5-8 (Chapters 11, 12, 16, 17 and 18) of your study guide.

covered in the question
All Roads Ltd (“All Roads”) is a nationwide vehicle manufacturer with a 31 March
financial year end.
The following is an extract of All Roads’ 31 March 2021 financial statements as well
as some financial ratio’s which have been calculated based on the statements:
All Roads Ltd
Statement of Financial Position as at 31 March 2021
Notes 2021
ASSETS
Non-Current Assets
Property, plant and equipment ?
Total Non-Current Assets ?
Current Assets
Inventories 1 3 468 400
Receivables ?
Cash and bank 7 181 000
Total Current Assets ?
Total Assets 58 366 700
Equity
Share capital 10 000 000
Total equity 35 011 000
Long-term borrowings ?
Total Non-Current Liabilities ?
Current Liabilities
Trade and other payables ?
Total current liabilities ?
Total Equity and Liabilities 58 366 700
Notes to the financial statements:
1. Inventory
2021 2020
R R
Raw materials 859 400 794 500
Work-in-progress 763 100 617 300
Finished goods 1 845 900 915 800
3 468 400 2 327 600
2. Ratio’s calculated:
Quick ratio = 2.3:1
Debt-Equity (D/E) ratio = 45%
Fixed asset turnover = 3.6 times
Gross profit margin = 36.7%
The current inflation rate in South Africa is 3.2% (as per the South African Reserve
Bank which manages it) and is expected to rise to 4.3% in the 2022 financial year of
the South African Reserve Bank. Note that the South African Reserve Bank also has
an actual financial year-end of 31 March.
Required:
1.1 Calculate the following ratios of All Roads Ltd for the 31 March 2021 financial
year:
• Raw material inventory days
• Work-in-progress inventory days
• Finished goods inventory days
• Debtors days
• Creditors days
Round to two decimal places where required.
(23 marks)
1.2 State whether All Roads Ltd employs a moderate, aggressive or conservative
financing policy for their working capital. Motivate your answer.
(2 marks)
1.3. Explain whether the above working capital financing policy is low or high risk
and why All Roads Ltd would opt to employ such a policy. Also state whether
this is a good working capital financing policy for All Roads Ltd to utilise.
(2 marks)
SAICA competencies:

mission and mandate
with the other resources and capitals which impact on the entity’s
business model
V-1.2 Understands the legal form and structure of the entity

Includes consideration of – form of ownership (e.g. public vs private
company, close corporations, proprietorship, partnership), extent of
ownership (e.g. direct investment vs outsourcing or strategic alliances),
tax issues, trade issues and location of investment or sourcing,
applicable legislation
Analyses the entity’s current financial situation and considers

V-2.1
factors impacting on the future outlook of the entity

V-3.3 Identifies and evaluates sources of funds

Describes the role, characteristics, advantages and disadvantages of
various sources of financing, suggests which source of financing is most
appropriate in the circumstances (e.g. debt, equity, leasing), taking the
entity’s financial strategies and objectives into account
Develops a portion of a financial proposal or financing plan that is

supported by well-reasoned assumptions and up-to-date information
Identifies the strengths and weaknesses of the financial proposal or
financing plans

Evaluates the capital structure of an entity (quantitatively and
qualitatively)
V-5 Develops or analyses business plans and financial proposals

Gains an understanding of the intended purpose and audience and takes
them into account when preparing the business plan or financial proposal


Integrates ideas and information from various sources (integrated
IC-2.5 thinking)
WizMinds Ltd (“WizMinds”) is a JSE-listed entity in the technological sector with a 31

August financial year-end.
Currently, WizMinds’ ordinary shares have a market price of R46 per share on the
JSE, where the risk-rate of the technological sector is 10.5%.
The following is an extract of WizMinds’ financial statements for the 2021-financial

year:
WizMinds Ltd
Statement of Financial Position as at 31 August 2021
2021
Equity
Ordinary share capital @ R10 each 12 000 000
Total equity 101 516 400
P/E R14
South African government bonds are offering a return of 7.4% to the investors.
WizMinds’ financial directors’ want to increase the entity’s future earnings per share
(EPS) ratio as much as possible in order to increase investor and shareholder value.
They are considering two options. Either to utilise 70% of their net profit of the 2021
financial year and perform a share buy-back or distribute 35% of the net profit per year
continuously in the future financial years as dividends to the shareholders.
Assume WizMinds has an entity beta of 0.91 and that the entity’s net profit is
expected to remain at the same level in the future.
Required:
2.1. Calculate and advise WizMinds Ltd whether a share buy-back or

distribution of dividends should be performed.
(20 marks)
2.2. Calculate WizMinds Ltd’ Return on Equity (ROE) for the 2021 financial
year.
(2 marks)
2.3. Calculate WizMinds Ltd’s cost of equity for the 2021 financial year.
(4 marks)
2.4. Based on your calculations in 2.2 and 2.3, advise whether WizMinds Ltd is
creating or destroying the value of the entity.
(2 marks)
SAICA competencies:

Prepares a preliminary analysis of the appropriate forms of organisation for
fulfilling these objectives in the light of the entity’s stated financial
objectives,
V-1.3 Identifies ways in which ownership can change

Identifies ways the ownership of an entity can be restructured (e.g.
buyouts, takeovers, restructurings)

V-2.1
V-3.4 Evaluates decisions related to distribution of profits

Evaluates the manner in which an entity distributes profits to shareholders
Recommends the most appropriate method to distribute profits

Determines an entity’s cost of capital using a range of methodologies


IC-2.5 thinking)
Davidson Ltd (“Davidson”) is a JSE-listed entity and a famous large grocery and
household-items retailer in South Africa with outlets nationwide. Their products are
sold at affordable, low prices in order to obtain high quantity sales.
Davidson generates large amounts of cash surpluses each financial year due to the
nature of their business and the fact that only cash sales are made (i.e., no credit is
extended to customers).
Davidson has an equity beta of 0.8.
Seeing that Davidson has surpluses of cash available and that they are continuously
on the lookout for opportunities to increase their net profit, stakeholder value and
growth, Davidson has identified Platinum Ltd (“Platinum”) as a means to extend
Davidson’s value. This will be executed by purchasing a controlling quantity of shares
in Platinum, in this case, 60%.
Platinum is a manufacturer of general grocery items which Davidson stocks in their

stores.
Below are extracts of Davidson and Platinum’s respective most recent financial
statements:
Davidson Ltd.
Statement of Financial Position as at 31 July 2021
2021 2020
R’000 R’000

Liabilities
Current Liabilities
Davidson Ltd.
Statement of Comprehensive Income for the year ending 31 July 2021
2021 2020
R’000 R’000
(Cost of sales) (10 266) (9 047)
(Selling and marketing (3 506) (3 488)

expenses)
(Administration expenses) (1 975) (1 891)
(Other operating (7 841) (6 823)

expenses)
Profit before interest 16 501 16 973

and tax expenses
Platinum Ltd.
Statement of Financial Position as at 30 April 2021
2021 2020
R’000 R’000

Liabilities
Current Liabilities
Platinum Ltd.
Statement of Comprehensive Income for the year ending 30 April 2021
2021 2020
R’000 R’000
(Cost of sales) (501) (477)

expenses)

expenses)

and tax expenses
Platinum has cash surpluses amounting to R8 000 000 available and has an equity
beta of 0.95. Their cost of debt (before tax) is 11.8%.
It is estimated that Platinum’s sales will be able to grow at a real rate of 6.7% per
annum for the next 3 years. Thereafter, the real growth will stabilise at 2.4% per
annum. The investment in working capital will be 40% of the turnover and an EBIT of
36% on turnover is expected. Currently the investment in working capital is R700 000.
Platinum has a target capital structure of 60%:40% debt-to-equity.
The inflation rate in South Africa is 3.2% and long-term RSA government bonds offer
a return of 10.7%. The average market return of the food and retail sector is 12%.
Assume an income tax of 28% for companies and that Platinum’s EBIT is equal to
their taxable income for all applicable years of assessment.
Required:
Calculate the current purchase price for the Platinum investment using the Free Cash
Flow model.
Round to the closest Rand where applicable.
SAICA competencies:

mission and mandate
model

Includes consideration of – form of ownership (e.g. public vs private
ownership (e.g. direct investment vs outsourcing or strategic alliances), tax
issues, trade issues and location of investment or sourcing, applicable
legislation

Identifies ways the ownership of an entity can be restructured (e.g.
buyouts, takeovers, restructurings)

V-2.1
Evaluates the appropriateness and impact of the growth strategies

V-2.2 formulated and adopted by the entity
Evaluates the different growth strategies (as listed below) which an entity
could implement, taking cognisance of the entity’s overall objectives,
mission and mandate and the creation of value:
External growth strategies (mergers and acquisitions)
Strategic alliances

forecasts a plausible range of values for a business for review and input
by others, using –
transaction-based approaches, e.g. discounted cash flow and
relationship thereof to EVA and MVA
Identifies the critical assumptions and facts that underlie the valuation
estimate, for review and input by others, including – ownership structures
(e.g. shares or assets, private company, partnership, listed or not), legal
risk (e.g. completeness of liabilities), factors affecting the accuracy of the
valuation, risks related to sustainability, growth strategies and growth
prospects
V-2.4 Analyses and evaluates a proposed merger, acquisition or divesture
Analyses, on a preliminary basis, the risks and financial implications of a

proposed start-up, expansion, merger, acquisition, strategic alliance or
divestiture, including –, the strategic context, behavioural
implications, legal implications, pricing considerations, impact of
synergy, financing considerations, management buy-outs, Black
Economic Empowerment (BEE), post-acquisition review, industry
regulation(e.g. mining, banks and broadcasting), environmental, social
and governance implications
Identifies, based on the analysis, –
the form of the transaction (e.g. percentage ownership, assets v shares,
expansion through franchising / alliance / joint venture)
V-3.1 Monitors cash flow

Monitors annual, monthly, weekly and if necessary daily cash flow, to
ensure that the entity’s financial obligations are met and performance
objectives are achieved

Identifies and analyses the opportunities (including the growth strategies
of the entity), risks, financial and sustainability implications of a proposed
including the use of probabilities and consideration of appropriate
discount rate, Key variables affecting the value of the investment,
including the performance of sensitivity analysis and application of
equivalent annual annuities, etc., Key variables impacting on foreign
capital investment decisions
V-6.2 Evaluates the alternative of asset specific finance

Evaluates the cost of asset specific finance such as a loan, instalment sale
and lease as an alternative to the entity’s usual method of financing
acquisitions, and the implications thereof on the decision to invest in the
proposed expansion / asset replacement
V-6.3 Considers relevant structural and governance issues

Suggests, based on analysis performed –
the form of the transaction (e.g. percentage ownership, assets v shares,

IC-2.5 thinking)
ANNEXURE J: SUMMATIVE ASSESSMENT 2
Summative Assessment 2: Application of Financial Management

Weighting: 10%
Assessment Type: Excel Skills Assessment
Due Date: Before or on the day of the Summative

Assessment 1
Total Marks: 20 Marks
Instructions:
1. Summative Assessment 2 (SA 2) must be handed in online before or on the day of
the Summative Assessment 1 (SA 1) sitting.
2. You must make use of Microsoft Excel to complete this assessment.
3. Follow the instructions carefully.
4. Only complete cells marked in yellow
5. Upload your completed Microsoft Excel Template onto ColCampus as well your
signed plagiarism form attached at the end of this document.
113 HFMN331-1-Jul-Dec2021-SA2-V3-ES-25052021
SCENARIO (20 MARKS)
You are employed at Necessity Ltd (“Necessity”), an entity which designs and
manufactures basic, everyday clothing items.
Necessity just finished designing a new jean which they wish to start producing and
selling.
In order to manufacture jeans, Necessity will have to purchase a new machine (“S115
DY”). The machine has a cost price of R17 860 540 and will be depreciated over a period
of 5 years according to the straight-line method. S115DY will also qualify for section 12C
wear-and-tear deductions according to which 40% may be deducted in the first year and
20% each year thereafter. Necessity will elect the straight-line method for income tax
deduction purposes. Thereafter, S115DY will be sold after 4 years, at which point it will
have a residual value of R1 083 000.The machine has an annual capacity to manufacture
65 000 units (“jeans”) which will be fully utilised by Necessity.
Below is the cost and selling price of the jean:
Cost price per unit R120

Selling price per unit R370
The investment in working capital (which will be 35% of the annual sales) will take place
at the beginning of the year and remain at this level for the years thereafter. Only at the
end of the second last year, will it decrease to 12%. Assume that any remaining working
capital balance will be recovered in the last year and will not affect the tax charges.
The current clothing items which Necessity are selling are generating before-tax
operating cash flows of R102 000 000 per annum which will be maintained in the future.
Necessity’s cost of capital is 12.4%.
The South African income tax rate for companies is 28%
STEPS TO FOLLOW AND REQUIRED:
1. You are busy calculating the net present value of machine S115DY.
2. Open the Excel Answer Book you have been provided with on ColCampus.
3. Perform research on the following Excel formulas:

• Add (including “SUM” formula), subtract, multiply and divide.
• NPV calculation.
• Absolute cell referencing in Excel using the ”$” sign.
• Referencing between various Excel sheets.
4. By using the above formulas, complete the all the yellow highlighted cells in the
Excel answer book by calculating the following:
• The total cash flows
• Tax payable /refundable
• Net Present Value (NPV)
TAKE NOTE OF THE FOLLOWING:

Only complete cells marked in yellow.
Refer to other cells in your calculations/formulas where possible.
Do not enter any amount/figure. Only use the above formulas and information already
included on the tab.
Make use of absolute cell referencing as far as possible.
Evidence required:
When you are satisfied that your formulas are correct, then go to Formulas > Show
Formulas. Your tab will change so that all of the cells where you entered formulas now
display the actual formula that you entered. Take a screen print of the screen with all
the formulas and submit this, along with question 1, for assessment. You will also need
to submit a copy of your Excel spreadsheet with all the formulas entered into it.
SAICA competencies:

others, using –
Identifies and analyses the opportunities (including the growth strategies of the
entity), risks, financial and sustainability implications of a proposed start-up or
expansion involving the replacement or acquisition of a capital asset, including
qualitative and quantitative considerations
investment decision, and adequately considers the following issues: Differing
project life cycles, Capital rationing, Possibility of abandonment or
expansion, Impact of inflation, Analysis of and allowance for risk, including the
use of probabilities and consideration of appropriate discount rate, Key
variables affecting the value of the investment, including the performance of
sensitivity analysis and application of equivalent annual annuities, etc., Key
variables impacting on foreign capital investment decisions
IA-4

IC-4.3 Presents information effectively to enhance understandability and usefulness
ANNEXURE: K
SAMPLE SUMMATIVE ASSESSMENT 1

Sample Summative Assessment 1: Application of Financial Management
Weighting: 60%
Assessment Type: Examination
Stationery: Black/blue pen/calculator
Pass requirement: 50%
Educator E. Slabbert
Due Date: Sample
Total: 100 marks
Duration: 3 hours
Instructions:
1. This examination script consists of 12 pages including the cover sheet. Ensure that you have
all the pages.
2. This examination consists of Essay-Type questions.
3. No answers in pencil will be marked.
4. Ensure that you hand in the entire examination script and the answer book at the end of the
session. This script remains the property of Boston City Campus & Business College (Pty)
Ltd.
5. Answer all questions.
6. Show all calculations.
7. The SAICA Competency Framework Reference at the end of a question is for record-
keeping and will inform you which SAICA Competency is covered in the question.
8. Good Luck!
117 HFMN331-1-Jul-Dec2021-SampleSA1-ES-V3-25052021
ANNEXURE: K
For your convenience, an overview of the Assessment Rules:

1. In order to control invigilated assessments in accordance with module specific guidelines, pub-
lished rules are enforced.
2. Students must bring a valid identity document (ID or Passport) and means to disclose their
student number to all (formative and summative) invigilated assessments.
3. Students participating in assessments in the form of invigilated tests or exams must arrive and
be seated in the assessment venue fifteen (15) minutes prior to the start of the assessment.
4. Students must sign the Assessment Register on arrival and when handing in their assessment
paper before leaving the assessment venue.
5. Students who arrive fifteen (15) minutes after the start of an assessment will not be allowed to
attempt the assessment under any circumstances.
6. Students who are late for an assessment, without just cause for an application for deferral, will
not be granted another assessment opportunity and will receive a zero (0) grade for the as-
sessment.
7. Students are required to complete all the necessary information (name, surname, student num-
ber and module code) on the assessment answer sheet.
8. Students will be required to remain in the assessment venue for forty-five (45) minutes from the
start of the assessment.
9. Other than what is specified by the particular requirements of a module, no student may make
use of any form of equipment, stationery or any other materials or resources during the assess-
ment session.
10. Other than what is specified, all electronic devices must be switched OFF for the duration of
the assessment.
11. Other than what is specified, no materials or equipment nor any other resources may be taken
into the assessment venue but must be left at a designated location, which is in most instances
near the entrance of the assessment venue.
12. Tippex (correction fluid) may not be used. Any section where Tippex is used will not be marked.
13. Students are not permitted to talk or communicate whatsoever during an assessment session
or cause any form of disturbance.
14. Students may not ask the invigilator for assistance in answering questions during an assess-
ment.
15. Should a student require anything during an assessment they may only communicate this need
to the invigilator on duty usually by raising of their hand.
16. Students may not leave the assessment venue without informing the invigilator and signing out
the exit attendance register.
17. No materials may be removed from the assessment venue at the end of an assessment. This
includes question papers as they remains the property of Boston City Campus & Business
College.
18. Learners must leave all personal belongings at the front of the assessment venue. This is done
at the learner’s own risk and neither Boston City Campus & Business College nor the staff will
be held responsible for the loss, theft or damage of belongings.
19. No student will be permitted extra time to complete an assessment unless the prior permission
granted has been brought under the attention of the invigilator prior to commencement of the
assessment. It is recommended that students do take along a copy of the approved permission
slip to overcome any unforeseen situation.
20. If an invigilator finds a student in contravention of any rule governing an assessment session,
the assessment script will immediately be confiscated and inform the Academic Committee at
Head Office Orange Grove. The student may be summoned to attend a disciplinary inquiry at
Head Office.
ANNEXURE: K
Wilsons & Joan Ltd (“W&J”) and Fox Ltd (“Fox’) are two clothing entities located in
Johannesburg.
W&J sells quality clothing for the high-end client base market while Fox offers every
day, casual wears.
Fox has been experiencing difficult financial years and has had low profit levels. Due
to this, Fox’s current share price has dropped, and W&J’s directors are considering
taking over Fox. W&J views this as a good investment opportunity as not only would
the purchase price be low due to Fox’s currently low share price, but W&J is also of
the opinion that Fox has great potential for high sales and net profit if the entity is
brought under proper management – which W&J’s directors can offer.
To facilitate this investment and control, W&J will purchase a 90% shareholding in
Fox.
Mr. Reynolds, a member of W&J’s Financial Management Department, has been

issued with the task by W&J’s directors, to draft a preliminary cash flow forecast to
calculate the value of the potential investment in Fox.
The information below has been gathered by Mr. Reynolds and forecast drafted:
Although Fox’s equity beta is 1.5, W&J’s equity beta is 1.1.
Below is an extract of Fox’s most recent audited annual financial statements:
Fox Ltd
Statement of Financial Position as at 31 October 2021
2021 2020
R’000 R’000
Current Assets
Inventory 479 387
Trade receivables 1 000 1 010
Cash and bank 1 516 1 492
Total Current Assets 2 995 2 889
ANNEXURE: K

Liabilities
Current Liabilities
Fox Ltd
Statement of Comprehensive Income for the year ending 31 October 2021
2021 2020
R’000 R’000
(Cost of sales) (3 087) (3 025)
Gross profit 776 749
expenses)
expenses)
and tax expenses
Under W&J’s management, Fox’s sales are estimated to grow at a real rate of 11.2%
per annum for the next four years. Thereafter, the real growth will stabilise at 3.3% per
annum. The EBIT is expected to be 42% of turnover.
Fox’s target capital structure is 55%:45% debt-to-equity. Their cost of debt before tax
is 14.3%.
Fox’s current assets are expected to have increased by 29% by the end of 2022. Both
the current assets and trade payables will increase by 5% every year thereafter until
2024. In the last two years they will decrease by 1.4% annually.
The South African inflation rate is 3.15% while long-term RSA government bonds offer
a return of 10.2%. The average market return in the clothing and accessories sector
is 15.8%.
Assume an income tax of 28% for companies and that Fox’s EBIT is equal to their
taxable income for all applicable years of assessment.
ANNEXURE: K
Preliminary Free Cash Flow forecast of Fox Ltd

Prepared by:
Mr. Reynolds
Base 2022 2023 2024 2025 2026
year (R) (R) (R) (R) (R)
2021
(R)
Sales 3 863 000 4 295 656 4 295 656 4 295 656 4 295 656 4 437 413
(W1)
Less: (1 202 784) (1 202 784) (1 202 784) (1 202 784) (1 242 47
Tax 6)
(W2)
Cash N/A 3 092 872 3 092 872 3 092 872 3 092 872 3 194 937
Flows
Calculations:
W1) Sales in R3 863 000 =R4 295 656
2022 to x [(100 +
2025: 11.2) /100]
Sales in R4 295 656 =R4 437 413

2026: x [(100+
3.3)/100]
W2) 2022 - R4 295 656 =R1 202 784

2025: x 28%
2026: R4 437 413 =R1 242 476

x 28%
ANNEXURE: K
W3) Cost of 14.3%

Debt:
Cost of =Rf + Beta 16.36%

Equity: (Rm – Rf)
= 10.2% +
1.1 (15.8%
- 10.2%)
WACC (i): (14.3% + =15.33%

16.36%) / 2
W4) CF0= 0
CF1= 3 092 872
CF2= 3 092 872
CF3= 3 092 872
CF4= 3 092 872
CF5= 3 194 937
I= 15.33%
NPV= CPT
10 337 316
Valuation of Fox Ltd:

NPV= R10 337
316
(Less) Value of (R3 287 00
debt= 0 +
R3 631 000
)
FINAL R3 419 316
TOTAL
VALUE
ANNEXURE: K
Required:
Critically evaluate and advise on the valuation performed by Mr. Reynolds.
(60 marks)
Round to two decimal places where applicable.
SAICA competencies:

mission and mandate
model

Includes consideration of – form of ownership (e.g., public vs private
ownership (e.g., direct investment vs outsourcing or strategic alliances), tax
issues, trade issues and location of investment or sourcing, applicable
legislation

Identifies ways the ownership of an entity can be restructured (e.g., buyouts,
takeovers, restructurings)

V-2.1
Performs financial analysis, interprets the results, and draws conclusions as
to the entity’s present and forecasted financial situation, including ratio
analysis, trend analysis, cash flow analysis
Evaluates the appropriateness and impact of the growth strategies

V-2.2 formulated and adopted by the entity
Evaluates the different growth strategies (as listed below) which an entity
could implement, taking cognisance of the entity’s overall objectives,
mission and mandate and the creation of value:
ANNEXURE: K
External growth strategies (mergers and acquisitions)

Strategic alliances

others, using –
Identifies the critical assumptions and facts that underlie the valuation
estimate, for review and input by others, including – ownership structures
(e.g., shares or assets, private company, partnership, listed or not), legal
risk (e.g., completeness of liabilities), factors affecting the accuracy of the
valuation, risks related to sustainability, growth strategies and growth
prospects
V-2.4 Analyses and evaluates a proposed merger, acquisition or divesture
Analyses, on a preliminary basis, the risks and financial implications of a

proposed start-up, expansion, merger, acquisition, strategic alliance or
divestiture, including –, the strategic context, behavioural
implications, legal implications, pricing considerations, impact of
synergy, financing considerations, management buy-outs, Black
Economic Empowerment (BEE), post-acquisition review, industry
regulation(e.g. mining, banks and broadcasting), environmental, social and
governance implications
Identifies, based on the analysis, –
the form of the transaction (e.g., percentage ownership, assets v shares,
V-3.1 Monitors cash flow

Monitors annual, monthly, weekly and if necessary daily cash flow, to ensure
that the entity’s financial obligations are met, and performance objectives
are achieved

ANNEXURE: K

decisions
V-6.2 Evaluates the alternative of asset specific finance

Evaluates the cost of asset specific finance such as a loan, instalment sale
and lease as an alternative to the entity’s usual method of financing
acquisitions, and the implications thereof on the decision to invest in the
proposed expansion / asset replacement
V-6.3 Considers relevant structural and governance issues

Suggests, based on analysis performed –
the form of the transaction (e.g., percentage ownership, assets v shares,

IC-2.5 Integrates ideas and information from various sources (integrated thinking)
ANNEXURE: K
Feed Fed Food Ltd (“FFF”) is a mass producer in the food industry with plants located
in Pinelands, Western Cape.
The entity produces various foods, including breakfast cereals, sauces, non-
perishable canned foods, etc.
All the raw materials required to produce their foods are sourced locally by FFF,
primarily from farmers.
Once the various finished food products are manufactured, they are sold either to
South African retail outlets or exported to foreign retail shops.
One of FFF’s machines, which is required to produce Worcester sauce, has entered
the last part of its useful life. The machine has become inefficient and based on the
repair costs required throughout the last months and the time taken to produce the
required quantity of Worcester sauces to satisfy the demand, both FFF’s operating as
well as the Financial Manager have considered it financially more beneficial to
purchase a new machine.
The acquisition suggestion was brought under the directors’ attention and after the
shareholder approval was obtained, the purchase was approved.
On 1 March 2021 the machine was ordered from the German supplier, Melve AG, at
a cost of €572 000.
Melve AG however, requires a 25% deposit on the date on which the order is placed.
Thereafter, FFF has to pay 55% on the date of arrival, as the machine is sold under
Free-On-Board (FOB) destination terms, and the last portion 3 months after arrival to
allow the purchaser to start generating income with the machine to facilitate the
settlement of the remaining balance due.
The ship transporting the order machine arrived at Cape Town harbour on 1 June
2021.
To hedge themselves again the involved risk, FFF undertook a forward cover.
ANNEXURE: K
Below are the bank’s quoted exchange rates on various dates:
Buy Sell
(R) (R)
Spot rate (01/03/2021) 17.20 17.30
One-month forward rate 17.31 17.38
Two-month forward rate 18.29 18.41
Three-month forward rate 18.48 18.56
Four-month forward rate 18.67 18.89
Five-month forward rate 18.85 18.97
Six-month forward rate 19.04 19.20
Seven-month forward rate 19.15 19.24
Required:
2.1. Determine the total cost of the machine to FFF Ltd in Rands.
(17 marks)
2.2. In your own words, explain the difference between a “buy rate” (i.e., bid rate)
and a “sell rate” (i.e., ask rate), when each is used and give an example of each.
(8 marks)
2.3. Name the type of risk and explain why buying a forward contract would
protect FFF Ltd against the risk.
(6 marks)
2.4. FFF Ltd could have also opted to purchase a call option instead of a forward
contract.
ANNEXURE: K
Explain what the difference between a forward contract and a call option is and
why a call option would have also been able to hedge FFF Ltd against the
involved risk.
(5 marks)
2.5. In your own words, explain the difference between a “call option” and a “buy
option”.
(4 marks)
SAICA competencies:

V-4.1 risk
Develops and evaluates risk management policies that relate specifically to
financial risk (e.g., hedging policy, investment policy, and insurance cover-
age), so that policies are consistent with the entity’s overall risk manage-
ment policies
Monitors changes in the economy (e.g., changes in interest rates, foreign
exchange, employment, and fiscal and monetary policy) and changes within
the entity, assessing their impact on the entity’s finances
Recommends changes to risk management policies in line with the assess-
ment of the impact on the entity’s finances
V-4.2 Evaluates the use of derivatives

Identifies the significant risks within an entity, including interest rate risks,
foreign exchange risks, and commodity risks
Analyses various derivative instruments that are available to mitigate risks
Identifies the need for, and evaluates on a preliminary basis, the usefulness
of forward and future contracts, swaps, put and call options (including war-
rants) and other derivatives, in meeting the entity’s objectives and staying
within its risk tolerance level.
Suggests appropriate derivative instruments to mitigate risks
ANNEXURE: L
SAMPLE SUMMATIVE ASSESSMENT 1 - MEMORANDUM
MEMORANDUM
Academic Year 2021: July – December

Sample Summative Assessment 1: Application of Financial Management
Weighting: 60%
Assessment Type: Examination
Stationery: Black/blue pen/calculator
Pass requirement: 50%
Educator E. Slabbert
Due Date: Sample
Total: 100 marks
Duration: 3 hours
Instructions:
Instructions:
1. This examination script consists of 14 pages including the cover sheet. Ensure that you have
all the pages.
2. This examination consists of Essay-Type questions.
3. No answers in pencil will be marked.
4. Ensure that you hand in the entire examination script and the answer book at the end of the
session. This script remains the property of Boston City Campus & Business College (Pty)
Ltd.
5. Answer all questions.
6. Show all calculations.
7. The SAICA Competency Framework Reference at the end of a question is for record-
keeping and will inform you which SAICA Competency is covered in the question.
8. Good Luck!
129 HFMN331-1-Jul-Dec2021-SampleSA1MEMO-ES-V3-25052021
ANNEXURE: L
For your convenience, an overview of the Assessment Rules:

1. In order to control invigilated assessments in accordance with module specific guidelines, pub-
lished rules are enforced.
2. Students must bring a valid identity document (ID or Passport) and means to disclose their
student number to all (formative and summative) invigilated assessments.
3. Students participating in assessments in the form of invigilated tests or exams must arrive and
be seated in the assessment venue fifteen (15) minutes prior to the start of the assessment.
4. Students must sign the Assessment Register on arrival and when handing in their assessment
paper before leaving the assessment venue.
5. Students who arrive fifteen (15) minutes after the start of an assessment will not be allowed to
attempt the assessment under any circumstances.
6. Students who are late for an assessment, without just cause for an application for deferral, will
not be granted another assessment opportunity and will receive a zero (0) grade for the as-
sessment.
7. Students are required to complete all the necessary information (name, surname, student num-
ber and module code) on the assessment answer sheet.
8. Students will be required to remain in the assessment venue for forty-five (45) minutes from the
start of the assessment.
9. Other than what is specified by the particular requirements of a module, no student may make
use of any form of equipment, stationery or any other materials or resources during the assess-
ment session.
10. Other than what is specified, all electronic devices must be switched OFF for the duration of
the assessment.
11. Other than what is specified, no materials or equipment nor any other resources may be taken
into the assessment venue but must be left at a designated location, which is in most instances
near the entrance of the assessment venue.
12. Tippex (correction fluid) may not be used. Any section where Tippex is used will not be marked.
13. Students are not permitted to talk or communicate whatsoever during an assessment session
or cause any form of disturbance.
14. Students may not ask the invigilator for assistance in answering questions during an assess-
ment.
15. Should a student require anything during an assessment they may only communicate this need
to the invigilator on duty usually by raising of their hand.
16. Students may not leave the assessment venue without informing the invigilator and signing out
the exit attendance register.
17. No materials may be removed from the assessment venue at the end of an assessment. This
includes question papers as they remains the property of Boston City Campus & Business
College.
18. Learners must leave all personal belongings at the front of the assessment venue. This is done
at the learner’s own risk and neither Boston City Campus & Business College nor the staff will
be held responsible for the loss, theft or damage of belongings.
19. No student will be permitted extra time to complete an assessment unless the prior permission
granted has been brought under the attention of the invigilator prior to commencement of the
assessment. It is recommended that students do take along a copy of the approved permission
slip to overcome any unforeseen situation.
20. If an invigilator finds a student in contravention of any rule governing an assessment session,
the assessment script will immediately be confiscated and inform the Academic Committee at
ANNEXURE: L
Head Office Orange Grove. The student may be summoned to attend a disciplinary inquiry at
Head Office.
NB. Notes to grader:
• Throughout the paper, award full marks for the question when the stu-
dent’s final answer is correct. Otherwise mark with calculations as indi-
cated.
• NB! Throughout the question paper, in an answer, if a student added ad-
dition amounts, award marks for the correct calculations (as indicated be-
low) but , e.g., if a student was required to write “800 - 200” (for one mark
each, i.e., total of 2 marks) and they wrote “800 – 200 – 50”, only award
the mark for the “800” as the student effectively “- 250” which is incorrect.
Thus, if additional amounts were added in calculations, deduct 1 or a half
mark (depending on which is relevant).
• © Award mark based on students’ previous calculation.
Note to grader:
It is extremely important with this question to ensure that the correct exact
amount which the student previous calculated was carried over to the relevant
calculation.
The nominal growth rate to be used for estimating sales’ figures:
• Mr. Reynolds used the real growth rate to calculate the future sales. He
should have utilized the nominal growth rate as it accounts for inflation which
will be applicable to all South African entities. 
• The nominal growth rate could be calculated as follow:
Nominal growth for next 4 years (i.e. 2022 – 2025)
=(1+ Real growth rate) (1+ Inflation rate) – 1
= (1+ 0.112) (1 + 0.0315) – 1
ANNEXURE: L
=14.7%
Nominal growth thereafter (i.e. 2026 – future)
=(1+ Real growth rate) (1+ Inflation rate) – 1
= (1+ 0.033) (1 + 0.0315) – 1
=6.55%
Growth calculated on the incorrect amounts
• In years 2023 to 2025 the growth has still been calculated on the year 2021’s
sales’ figure. As the 11.2% real growth will be per annum, this will mean that
every year there is a growth in sales from the previous year. To calculate the
next year’s sales figure ,the previous year’s sales amount should be used.
• Thus,
2023 =R4 295 656 ½ x [(100 + 14.7) /100]½ ©
= R4 927 117.43
2024 =R4 927 117.43½© x 1.147½©
= R5 651 403.69
2025 = R5 651 403.69½© x 1.147½©
= R6 482 160.04
2026 = R6 482 160.04 ½© x [(100 + 6.55)/100]½ ©
= R6 906 741.52
Net profit after tax (excl. interest) to be used to calculate final cash flows:
ANNEXURE: L
• To calculate the cash flows W&J can expect in the future (2022 and onwards),
the net profit after tax should be calculated as this is a more realistic cash flow
seeing that it accounts for expenses (e.g. operating expenses, etc.) which will
have to be incurred and paid in Fox’s operations. 
• Information regarding each year’s EBIT is given. Thus, the EBIT (“Earnings
Before Interest and Tax”) can be calculated and the tax simply deducted from
that to get to a more realistic view of each year’s net profit after tax. 
• The interest expense should be excluded (i.e. not also deducted from EBIT) to
calculate the final cash flows for the valuation, as these final cash flows will be
discounted at the interest rate. Thus, to take the interest amounts into consid-
eration in calculating the final cash flows and then also discounting them at
the interest rate would be double accounting for the interest expense. 
• 2022’s EBIT = R4 295 656½ x 42%½
= R1 804 175.52
2023’s EBIT = R4 927 117.43 ½© x 42% ½
= R2 069 389.32
2024’s EBIT = R5 651 403.70 ½© x 42% ½
=R2 373 589.55
2025’s EBIT = R6 482 160.04 ½©x 42% ½
= R2 722 507.22
2026’s EBIT = R6 906 741.52 ½©x 42% ½
= R2 900 831.44
ANNEXURE: L
Not taking working capital into consideration in calculating final cash flows
• Not only the net profit after tax should be taken into account when calculating
the final cash flows every year, but also the working capital. The reason is that
a cash flow will be expected every year due to the working capital ,as working
capital is “Current Assets – Trade Payables” and as they are “current as-
sets/liabilities”, they will be settled every year causing either a cash inflow or
cash outflow yearly (depending on whether the current assets’ or trade paya-
bles’ movement is greater). 
• Working capital 2021 = R2 995 000 ½– R3 631 000
= -R636 000
Working capital 2022 = (R2 995 000 ½ x [{100 + 29}/100])½–

R3 631 000 
= +R232 550
Movement 2021 to 2022 = -R636 000 ½© – (+R232 550) ©
= -R868 550
Working capital 2023 = R232 550 ½© x [(100 + 5 )/ 100]
= R244 177.50
Movement 2022 to 2023 = +R232 550 ½© – (+R244 177.50) ©
= - R11 627.50
Working capital 2024 = R244 177.50 © x 1.05 ½
ANNEXURE: L
= R256 386.38
Movement 2023 to 2024 = R244 177.50 ½© – R256 386.38 ©
= -R12 208.88
Working capital 2025 = R256 386.38 ½© x ([100 – 1.4]/100) 
= R252 796.97
Movement 2024 to 2025 = R256 386.38 ½© - R252 796.97 ©
= +R3 589.41
Working capital 2026 = R252 796.97 © x ([100 – 1.4]/100) ½
= R249 257.81
Movement 2025 to 2026 = R252 796.97 ½© - R249 257.81 ©
= +R3 539.16
After tax cost of debt rate should be used for discounting:
• The cost of debt rate (before tax) was used as part of WACC to discount the
tax flows. As the interest expense of debt may be deducted for income tax
purposes, the after tax effects should be considered. 
• Thus, cost of debt after tax = 14.3% ½ x (100% ½ – 28% ½)
=10.30%
The equity beta of W&J was used in cost of equity’s calculation:
ANNEXURE: L
• As the cost of Fox’s equity is calculated, Fox’s equity beta should be

used. 
• Thus, cost of equity = Rf + Beta (Rm – Rf)
= 10.2% ½ + 1.5 ½ (15.8% ½- 10.2% ½)
= 18.6%
WACC should be weighted in accordance to the target capital structure:
• To calculate the average of cost of equity and cost of debt (i.e. divide it by
two), is to apply a 50%: 50% debt:equity ratio. ½
• This is incorrect as the target capital structure for Fox is 55%:45%. Thus, the
overall funds will be obtained 55% from debt and 45% from equity. 
• Consequently, Fox will only pay 18.6% on 45% of funds and pay 11.5% on
the remaining 55% of funds.
• Thus, WACC = (10.30% ½x 0.55 ½) + (18.6% ½ x 0.45 ½)
=5.67% + 8.37%
=14.04%
No terminal value is calculated and brought into consideration:
• Only cash flows for years 2022 to 2026 were calculated and discounted. Thus
brought into consideration. There will however also be cash flows in the years
thereafter (2027 and further). This will also have a value to W&J and should
be included in the worth (“final total value”)of the investment. 
• As the cash flows are continuing without known end into the future, they
should be treated as perpetuities and their worth will be based on the perpetu-
ity-formula: [CF1 / (i – g)], where CF1 is the next year’s cash flows (i.e. after
the last calculated cash flow, thus year 2027).
• Thus,
ANNEXURE: L
Cash flow year 2026 = R2 900 831.44  ½© –( R2 900 831.44  ½© x

0.28  ½) +R3 539.16  ½©
= R2 092 137.80
Cash flow year 2027 = R2 092 137.80  ½© x [(100 + 6.55)/100]  ½©
= R2 229 172.83
Perpertuity’s value = R2 229 172.83 ½© /(0.1403 ½ -0.0655 ½)
= R29 801 775.80
• R29 801 775.80 is however the value in the last calculated year (i.e. year
2026) as CF1 was year 2027 above, thus CF0 is year 2026 and
R29 801 775.80 the PV in year 2026). 
• The PV (current value/worth) needs to be calculated for year 2021 as it is the

current year and W&J’s directors want the value currently to know the invest-
ment’s worth.
Thus:
FV = - 29 801 775.80 ½©
N = 5 ½
I = 14.03% ½
PV = CPT
= 15 457 758.63
The current worth (PV) of the future cash flows in years 2027 and onwards is
R15 457 758.63. This is to be included in the “total final value” of the invest-
ment.
The value of the debt deducted should exclude trade payables:
ANNEXURE: L
• The value of the debt deducted in the ”final total value” calculations should
exclude trade payables as trade payables has already been accounted for
in the cash flows which were discounted (as it is part of the “working capital”-
calculations). 
Cash surpluses which Fox has should be included in the “final total value”:
• Any cash surpluses which Fox Ltd currently has should be added to the final
total value as it will have a benefit for W&J Ltd as its and will increase the
value of investing in Fox. 
• Thus, R1 516 000 should be added to the “final total value”. 
The “Final Total Value” should be calculated for the 90% shareholding:
• As W&J will only purchase 90% of Fox, only 90% of the total overall value will
be value to them.
• Thus the “final total value” should be multiplied by 90% to obtain the value of
W&J’s investment. 
Reference:
• Chapter 17 pages 17-37 – 17-38.
Learning Outcomes:
• Determine the terms of a merger using cash or share exchange.
• Understand how to value the equity of target companies.
ANNEXURE: L
Note to grader:
It is extremely important with this question to ensure that the correct exact
amount which the student previous calculated was carried over to the relevant
calculation.
2.1. (17 marks)

On date which order was placed (1 March 2021):
€572 000  x 25%  = €143 000
€143 000© x R17.30 = R2 473 900.00
Date of delivery (1 June 2021):

€572 000  x 55%  = €314 600
€314 600© x R18.56  = R5 838 976.00
Date of final payment (1 September 2021):

€572 000  x (100% - 25% - 55%) = €114 400
€114 400 ©x R19.20  = R2 196 480.00
Total cost:
R2 473 900.00© + R5 838 976.00© + R2 196 480.00© = R10 509 356.00
2.2. (8 marks)
Buy rate:
• Is the exchange rate at which the financial institution (e.g. banks) , or other
party, will buy the currency from you. 
• The buy rate is utilized when we have a certain currency and wish to sell it to
the financial institution for another currency.
• The financial institution thus state that they will buy the currency from you at
the given exchange rate. 
• E.g., We have Dollars which we wish to sell to the bank (i.e. the bank will pur-
chase it from us). We thus look at the bank’s “buy rate” to determine the
ANNEXURE: L
amount of Rands which they have formally announced which they will buy
each dollar for, from us. 
Sell rate:
• Is the exchange rate at which the financial institution (e.g. banks), or other
party, will sell the required currency to you.
• The sell rate is utilized when we require a certain currency and wish to pur-
chase it from the financial institution.
• The financial instituition will thus sell the required currency to us at the given
exchange rate. 
• E.g. Our entity operates in Rands as their “functional currency” (IAS 21) , they
require dollars for a certain transaction.We thus look at the bank’s “sell rate”
to determine the amount of Rands the bank will sell each one of the Dollars
they have for. 
2.3. (6 marks)
Foreign exchange risk : Euro strengthening to Rand
• As FFF Ltd ordered and agreed to purchase the machine, they will have to pay
the supplier their price (in Euro, which is the German currency) on the stipulated
dates in the future (€314 600 on 1 June 2021 and €114 400 on 1 September
2021).
• Should the Euro strengthen against the Rand, FFF will have to pay more Rands
per Euro (e.g., say the spot rate changes from R17.30/€1 to R17.40/€1).
• When FFF Ltd enters into the forward contact with the bank (i.e. purchase a
forward contract from the bank), FFF Ltd and the bank will agree at what ex-
change rate FFF Ltd may buy Euro from the bank on set dates in the future
(irrespective of what the actual spot exchange rate is then). 
• It therefore eliminates the risk of uncertainty for FFF Ltd and they will be able
to budget and manage their financials better. 
• Additionally, FFF Ltd would be willing to enter into the given forward contract if
they believe that the terms are more favourable than the actual future Euro-
Rand exchange rate they foresee (i.e. the forward Euro-Rand exchange rates
ANNEXURE: L
are lower on each date than the actual spot Euro-Rand exchange rate they
foresee on that future date). 
2.4. (5 marks)
• Under a forward contract (as well as a “future” ), the parties have to perform
the transaction involved, i.e. FFF Ltd will have to purchase the Euro’s from
the bank at on the stipulated dates at the agreed exchange rates. 
• Under a call option, the party who purchased the actual option (FFF Ltd in this
case would have entered/ purchased an option from the bank), has the op-
tion to call on the bank to sell the Euro’s to them on the stipulated dates at
the agreed exchange rates. 
• FFF Ltd may purchase a call option under which they will fix the future exchange
rates of Euro’s. This will eliminate the risk of uncertainty for FFF Ltd and they
will be able to budget and manage their financials better  Additionally, if the
actual future price is then more expensive (i.e. stronger Euro), they may choose
to exercise the option. If the actual future price is cheaper, they will simply opt
not to exercise the option. 
• FFF Ltd would be willing to enter into the given call option if they believe that
the terms are more favourable than the actual future Euro-Rand exchange rate
they foresee (i.e. the forward Euro-Rand exchange rates are lower on each
date than the actual spot Euro-Rand exchange rate they foresee on that future
date). 
2.5. (4 marks)
• Under a call option, the party who purchased the actual option (FFF Ltd in this
case would have entered/ purchased an option from the bank), has the option
to call on the bank to sell the Euro’s to them on the stipulated dates at the
agreed exchange rates. 
ANNEXURE: L
• Under a put option, the party who purchased the actual option (FFF Ltd in this
case would have entered/ purchased an option from the bank), has the option
to put the underlining item (Euro’s in this case) to the bank, which the bank
must buy from them on the stipulated dates at the agreed exchange
rates.  This is therefore irrelevant in FFF Ltd’s case in this scenario.
Reference:
• Chapter 18 pages 18-2.
• Chapter 18 pages 18-8 – 18-11.
• Chapter 19, pages 19-5 – 19-7.
• Chapter 19, page 19-23..
• Chapter 19 pages 19 -47.
Learning Outcomes:
• Understanding the concept of risk management.
• Define, measure and set-out strategies to manage interest rate risk, currency
risk, refinancing risks, market/commodity price risk, credit risk and liquidity
risk.
• Understand the characteristics of call and put options.
• Explain the use of derivatives for hedging purposes.
• Understand how the foreign exchange market operates.
• Determine how exchange rates are quoted in the spot and forward markets.
• Understand the determinants of currency rate movements.

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BOSTON CITY CAMPUS

Application of Financial Management

Assessment Strategy (AS5)

July - December 2021

About the Institution

2. CRITICAL OUTCOMES OF THE LEARNING PROGRAMME 8

3. TEACHING, LEARNING AND ASSESSMENT 11

4. STUDENT ACCESS TO IT, LIBRARY AND OTHER RESOURCES 16

5. COMMUNICATION AND SUPPORT 18

6. REQUIREMENTS TO COMPLETE THE MODULE SUCCESSFULLY 22

7. MODULE STRUCTURE AND ASSESSMENT SPECIFICS 25

9. STUDY PROCEDURE AND GUIDELINES FOR COMPLETING ASSESSMENTS 28

A. EXPLANATION OF ACTION VERBS REQUIRED FOR COMPLETING ASSESSMENTS 30

B. PROPOSED STUDY PROGRAMME 31

C. BREAKDOWN OF PROPOSED COURSE MATERIAL 46

D. ACADEMIC CALENDAR FOR 2021 47

E. PLAGIARISM INFORMATION SHEET 55

G. SAMPLE FORMATIVE ASSESSMENT 1 73

H. SAMPLE FORMATIVE ASSESSMENT 1: MEMORANDUM 85

J. SUMMATIVE ASSESSMENT 2 113

K. SAMPLE SUMMATIVE ASSESSMENT 1 117

L. SAMPLE SUMMATIVE ASSESSMENT 1: MEMORANDUM 129

Welcome to the Application of Financial Management Techniques (HFMN331-1) module. This

The purpose of Application of Financial Management Techniques is to provide students

1.2 The Module

• Module name: Application of Financial Management

1.3 Notional Hours

1.4 Introduction to SAQA, QCs and the NQF

Who is the South African Qualifications Authority (SAQA)?

In terms of qualifications and professional bodies, SAQA must:

What are Quality Councils (QCs)?

The three QCs are:

What is the National Qualifications Framework?

What Does the NQF Look Like?

Description NQF 5 NQF 6 NQF 7 NQF 8

3.1 Learning Philosophy

As an accredited and registered private higher education institution, Boston is committed to

• Should be action-orientated and communicative

3.2 Learning Methodology

Learning consists of:

3.3 Assessment Strategies and Types of Assessments

The following are examples of assessment strategies used:

There are a number of assessment types appropriate to the distance-learning environment,

• To encourage students to review

3.3.1 Self-Assessment and Recommended Reading

3.3.3 True-False Test

3.3.4 Open-Book Test/Assignment

Open-book testing is used to:

3.3.5 Multiple-Choice Question Examination

3.3.6 Student-Centred Interaction

By encouraging students to continually ask questions and be comfortable with the

3.3.7 Sample Assignment and Examination Papers and Memoranda

Students receive a sample assignment and memorandum, as well as a sample examination

3.4 Feedback to Students

4.1 Distance Learners and Support Centres

4.3 Head Office Resource Centre

Librarian Contact details

5.1 Student Support

Please Note: There will be no student support from Educators on a Friday.

5.2 General and Administrative Support (Administrative – NOT Course Related)

Registrar: Administration Contact details

Registrar: Academic Contact details

Students are able to contact an Educator by means of: