Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Financial Accounting Expert

problem 1)a)

The following data are available for the firm A:

Quantity : 3,000 units
Selling price : Rs.100/unit
Variable cost : Rs.40/unit
Fixed costs : Rs.1,00,000
Interest Paid : Rs.40,000
Preferred Dividend : Rs.10,000
Number of equity shares: 15,000
Tax rate : 60%

Compute:

(i) Earnings per share

(ii) Operating breakeven point

(iii) Financial breakeven point

(iv) Overall breakeven point. What equal series of payments are necessary to repay a loan amount of Rs. 1, 00,000 in 5 years at 12% per year compounded quarterly, with annual payments?

problem 2)a) A chemical company has been growing at a rate of 18% per year in recent years. This abnormal growth rate is expected to continue for another 4 years. Then it is likely to grow at the normal rate of 6%. The required rate of return on the shares by the investment community is 12% and the dividend paid per share last year was Rs.3. At what price would you, as an investor, be ready to buy the shares of this company now and at the end of years 1, 2, 3 and 4 respectively?

b) Compare journal and the ledger books of the double entry system of accounting.

c) A Rs.1, 000 par value bond, bearing a coupon rate of 12% will mature after 10 years. Interest payable is semi-annually. Compute the value of the bond if the required rate of return is 16%.

d) Describe the significant turnover ratios and profit margin ratios.

Financial Accounting, Accounting

  • Category:- Financial Accounting
  • Reference No.:- M96461

Have any Question? 


Related Questions in Financial Accounting

Your project is halfway complete and your boss wants more

Your project is halfway complete and your boss wants more data to ensure the project will complete on schedule. You have been tracking EV, SPI and CPI and feel confident the project is on schedule. Your boss's gut feelin ...

Discussion financial conditionbullfor this discussion

Discussion: Financial Condition • For this discussion, assume the role of a financial manager in a company, and assume that you have just hired a new bookkeeper to join your team. You want to assess the new hire's unders ...

Assignmentholden graham started the graham co a new

Assignment Holden Graham started The Graham Co., a new business that began operations on May 1. The Co. completed the following transactions during its first month of operations. H. Graham invested $43,500 cash in the co ...

Budget assignmentyou have been asked to prepare the

Budget Assignment You have been asked to prepare the operating budget for a 150 room hotel, with a 50 seat Coffee Shop, a 100 seat Dining Room and a 25 seat Bar. The operating budget for the year is based on the followin ...

Discussionanswer in 2-3 paragraphs and use

DISCUSSION ANSWER IN 2-3 PARAGRAPHS AND USE SCHOLARLY SOURCE(S) First, search the internet for the official website of your local city government. If you cannot find your city, select your state. After reviewing this web ...

What are some different ways you could communicate a

What are some different ways you could communicate a concept for a new user interface for an automotive audio system? What are the strengths and weaknesses of each approach?

1 morris minor corporation manufactures two products each

1. Morris Minor Corporation manufactures two products each of which require machine processing and labor operations. There is extensive demand for both products, but Morris Minor could devote all of its capacity to manuf ...

Paperwrite a 750- to 1050-word paper in which

PAPER Write a 750- to 1,050-word paper in which you: • Explain the principles of internal control. • Explain the use of cash and internal controls to prevent fraud. • Explain why corporations invest in stocks and debt se ...

Question 1a t shirt company is planning a production run

Question 1: A t shirt company is planning a production run for an event where the attendance (and thus demand for t-shirts) is uncertain. The event planners have indicated that they think the attendance will be 500, 750 ...

1 wellplace hospital provides you with the following

1. Wellplace Hospital provides you with the following financial statements for 20X2 and 20X1: December 31 20X2 20X1 Cash $ 168 $ 211 Temporary investments 126 34 Receivables-patients, net 1,011 893 Inventory 296 315 Prep ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen