QUESTION $3$

$3\mathrm{.}1$

$(20$ Marks$)$

REQUIRED

Use the information provided below to calculate the cash conversion gycle. Note Use the formulas provided in the formula sheet only $($that appear after QUESTION $5)$ INFORMATION

$(5$ Marks$)$

The following informalion was oblained from the fecords of Roper Traders on $31$ December $2024,$ the end of the first year of trading:

$\backslash$table$[[$Sales for the year $($all credit$),$R$1000000],[$Cost of sales,R$600000],[$Credit purchases of goods for the year,R$720000],[$Inventory$,$R$18000],[$Amount owed by customers for credit sales,R$100000],[$Amount owed to suppliers for credit purchases,R$40000],[$Average age of inventory,$24$ days$]]$

$32$

REQUIRED

Calculate the Economic Order Quantity from the information provided below

INFORMATION

$(5$ Marks$)$

Sinclar Limited sel's $50000$ units of Product K each month. The purchase price is R$4$ per unt. The carrying cost of inventory amounts to $12\mathrm{.}5\%$ of the purchase price. The ordering cost is R$15$ per order.

$3\mathrm{.}3$

REQUIRED

Use the Dividend Growth Model to calculate the cost of the ordinary shares fexpressed as a percentage to two decmal places$)$ from the rformaton provided below

INFORMATION

$(4$Marks$)$