Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Financial Management Expert

problem 1) We want flexible budget as costs are too hard to predict. We need the flexibility to change budgeted costs as input price change. Does a flexible budget serve this purpose? Describe.

problem2) Indirect method of reporting cash flows from operating could create a erroneous impression about non-cash expenses (such as depreciation). What type of impression it could create and why is it erroneous.   

problem 3) "Eeffect of price reduction is always to reduce the p/v ratio, to raise the B.E.P. and shorten the MOS." Describe with appropriate ex.

problem 4) Equipment A has a cost of  75,000/- and net cash flow of ` 50,000/- and generate net cash flow of ` 15,000/- per year for six years. The required rate of return of both equipments is 11 per cent. Compute the IRR and NPV for each equipment. Which equipment must be accepted?

problem 5) "Investment, Financing and Dividend decisions are interrelated."  describe this statement. 

problem 6) "There is nothing like the optimum capital structure for a firm" - Critically describe this statement.

problem 7) The following information are related to Sun Ltd.

Paid-up equity capital          10,00,000
Earnings of the company     1,00,000
Dividend paid                      80,000
Price - Earning ratio (PIE)     20
No. of equity shares            1,00,000

Determine whether dividend payout of Sun Ltd., is optimal. [Use Walter's model].

problem 8) The following information are available in respect of companies M and N

                                              Company M        Company N
     
Equity share capital (`10 each)    20,00,000        10,00,000
14% Debentures                        5,00,000        15,00,000
EBIT                                          5,00,000        5,00,000
Return on capital employed          20%              20%
Tax rate                                     40%             40%

From the above information, compute: 

a) Financial leverage

b) Rate of return on equity share capital

c) Earnings per share

Also state which company's shareholders are in a better position financially?

Financial Management, Finance

  • Category:- Financial Management
  • Reference No.:- M94747

Have any Question? 


Related Questions in Financial Management

There are three main types of business structures sole

There are THREE main types of business structures: Sole Proprietorships, Partnerships and Corporations. What are the advantages and disadvantages of each?

A 20 year corporate bond has a coupon rate of 9 paid semi

A 20 year corporate bond has a coupon rate of 9% paid semi annually, a par value of $1000 and a quoted price of 102. What is the bond effective annual rate?

Your firm is considering a project with a five-year life

Your firm is considering a project with a five-year life and an initial cost of $120,000. The discount rate for the project is 12%. The firm expects to sell 2,100 units a year. The cash flow per unit is $20. The firm wil ...

Taussig technologies corporation ttc has been growing at a

Taussig Technologies Corporation (TTC) has been growing at a rate of 20% per year in recent years. This same growth rate is expected to last for another 2 years, then decline to gn= 6%. a) If D0= $1.60 and rs= 10%, what ...

Company a a low rated rm desires a xed rate long term loan

Company A, a low rated rm, desires a xed rate, long term loan. Company A currently has access to oating-rate funds at a margin of 1.2% over LIBOR. Its direct borrowing cost is 13% in the fixed rate bond market. In contra ...

You want to have 1 million in real dollars in an account

You want to have 1 million in real dollars in an account when you retire in 30 years. The nominal return on your investments 11 percent and the inflation rate is 3.8 percent. What real amount must you deposit each year t ...

Let say you are given 1000000 to invest and you choose to

Let say you are given $1,000,000 to invest and you choose to diversify your porfolio into different stocks, EFTs, MFs (stocks like google, amazon apple, microsoft, nike, under armor, alibaba ect..) Come up with a clear i ...

Agreement andrew offered to purchase robrsquos house and

AGREEMENT Andrew offered to purchase Rob’s house and gave Rob six weeks for a definite answer. Rob, on the basis of this offer, bought another house. Before the six weeks expired, but after Rob had bought the second hous ...

Deployment specialists pays a current annual dividend of 1

Deployment Specialists pays a current (annual) dividend of $1 and is expected to grow at 20% for two years and then at 7% thereafter. If the required return for Deployment Specialists is 9.5%, what is the intrinsic value ...

Stock dividends the market value balance sheet for outland

Stock dividends: The market value balance sheet for Outland Manufacturing is shown in the table below. Outland has declared a 20 percent stock dividend. The stock goes ex-dividend tomorrow. (Chronology for a stock divide ...

  • 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