Alpha Plc has monetary assets of £100,000 and monetary liabilities of £90,000. Based on Current Purchasing Power Accounting (CPPA) which of the following statements is correct. Prices have increased by 5%. Alpha Plc has monetary assets of £100,000 and monetary liabilities of £90,000. Based on Current Purchasing Power Accounting (CPPA) which of the following statements is correct. Prices have increased by 5%. Alpha is £5,000 better off Alpha is £5,000 worse off Alpha is £500 better off Alpha is £500 worse off

Prices in the economy have increased by 10% over the last year. Company A has monetary assets of £80,000 and monetary liabilities of £90,000, based on Current Purchasing Power Accounting (CPPA) which of the following statements is correct: Prices in the economy have increased by 10% over the last year. Company A has monetary assets of £80,000 and monetary liabilities of £90,000, based on Current Purchasing Power Accounting (CPPA) which of the following statements is correct: Company A will gain in real terms Cannot be established from this information Company A will lose in real terms There will be no effect on the company

Alpha Limited has issued 5 million shares, the shares trade at R19 per share on the Johannesburg Securities Exchange (JSE). The firm’s assets amount to R85 million and total liabilities to R1.5 million. The firm has a net asset value (NAV) of … and trades at a premium closest to … against the NAV.Select one:a.R17.03 18.5%b.R16.70 13.8%c.R16.70 18.5%d.R17.03 13.8%

Entity Alpha acquires equipment on January 1, 2021. Information on costs is as follows:Purchase Price, gross of trade discount         1,000,000Trade discount available              10,000Freight Costs              20,000Testing Costs              30,000Net disposal proceeds of samples generated during testing                 5,000How much is the initial cost of the equipment?  The equipment has an estimated useful life of 10 years and a residual value of ₱200,000. Entity A uses the straight line method of depreciation. How much is the carrying amount of the equipment on December 31, 2023?

Question 3 – Sources of Finance (15 marks) Alpha Innovations is a technology startup company that designs and manufactures innovative medical devices. The company has been doing well since its inception and now, to meet increasing demand, Alpha Innovations needs to expand its production capacity. To finance this expansion, the company needs to raise additional capital. You, as the financial manager, are involved in evaluating the financial situation of the company and proposing a suitable financial strategy. The financial structure of Alpha Innovations is as follows: Equity capital: 1,000,000 shares that were initially issued at a price of $1 each, but which now are currently trading at $1.80. The expected return on equity capital is 10% per annum. Long term debt: $900,000 with an interest rate of 5% per annum. Short term debt: $600,000 with an interest rate of 5% per annum. The corporate tax rate is 30%. Using the WACC rate in (a), briefly explain what this rate represents and measures. If the company, as part of its expansion policy, is considering purchasing production equipment with an annual return of 10%, discuss how the WACC rate can inform this business decision. (4 marks, max 120 words)

Question 3 – Sources of Finance (15 marks) Alpha Innovations is a technology startup company that designs and manufactures innovative medical devices. The company has been doing well since its inception and now, to meet increasing demand, Alpha Innovations needs to expand its production capacity. To finance this expansion, the company needs to raise additional capital. You, as the financial manager, are involved in evaluating the financial situation of the company and proposing a suitable financial strategy. The financial structure of Alpha Innovations is as follows: Equity capital: 1,000,000 shares that were initially issued at a price of $1 each, but which now are currently trading at $1.80. The expected return on equity capital is 10% per annum. Long term debt: $900,000 with an interest rate of 5% per annum. Short term debt: $600,000 with an interest rate of 5% per annum. The corporate tax rate is 30%. As a financial manager. you need to raise capital for Alpha Innovations' expansion. With potential sources of finances available such as personal savings, retained earnings, bank loans, angel investors, venture capital, and issuing shares, consider the following factors in your discussion on choosing the most suitable financing method: Control Availability of funds Market conditions (4 marks, max 120 words)