FIN3701 Assignment 2 Semester 1 2026 | Complete Answers – WACC, NPV, CAPM, Market Efficiency, IRR vs NPV & Ratio Calculations | UNISA Financial Management

This complete assignment solution is designed for UNISA students enrolled in FIN3701 Financial Management for Semester 1 of 2026. It provides fully answered questions for Assignment 2 (Unique Number: 224278, Due Date: 17 April 2026). Content includes: Section A – Short Calculation Questions (40 marks) covering cost of equity using the Gordon Growth Model (D1/P0 + g), weighted average cost of capital (WACC) calculation with debt and equity weights, net present value (NPV) calculation using annuity factors with accept/reject decision, net income and times interest earned (TIE) ratio from EBIT and interest expense, and inventory turnover ratio calculations including cost of goods sold (COGS) and days sales in inventory. Section B – Theory and Application Questions (60 marks) includes: (Question 6) Explanation of systematic risk vs unsystematic risk with examples, and why only systematic risk is rewarded in the Capital Asset Pricing Model (CAPM); (Question 7) IRR vs NPV conflict analysis for mutually exclusive projects, circumstances causing conflicting decisions (different scales, timing of cash flows, different useful lives), and explanation of why NPV is theoretically superior; (Question 8) Discussion of the three main forms of market efficiency (weak form, semi-strong form, strong form) as proposed by Eugene Fama, what information is reflected in each, what trading strategies fail, and implications of the efficient market hypothesis for corporate financial managers. All calculations show formulas and steps with final answers rounded to two decimal places. Written answers are in clear numbered paragraphs as required. Perfect for UNISA financial management students seeking a high-quality, model answer submission for Assignment 2 Semester 1 2026.