Section A: All 10 questions are compulsory and must be attempted. Each question is worth 2 marks.
Are the statements true or false?
Statement 1 is true and statement 2 is false
Both statements are false
Both statements are true
Statement 2 is true and statement 1 is false
In the context of managing performance in not for profit organisations, which of the following definitions is incorrect?
Value for money means providing a service in a way which is economical, efficient and effective
Economy means doing things correctly: not spending $2 when the same thing can be bought for $1
Effectiveness means doing the right things: spending funds so as to achieve the organisation’s objectives
Efficiency means doing things quickly: minimising the amount of time that is spent on a given activity
Sparrow Co has just paid an ordinary dividend of 30c per share. The shares are now trading at 480c.
If dividend growth is expected to be 3% per annum, what is the company’s cost of equity to the nearest whole number?
8%
9%
7%
6%
Which of the following sources of finance to companies is the most widely used in practice?
New share issues
Bank borrowings
Rights issues
Retained earnings
