Ask Question, Ask an Expert


Ask Financial Management Expert

problem 1) Answer all the problems:

i) What are major financial decisions? Describe.

ii) prepare down the differences between operating and financial leverage.

iii) What do you understand by operating cycle? How it is find outd.

iv) What is dividend? What is the difference between regular dividend and interim dividend?

v) What is weighted cost of capital?

problem 2) What is capital structure? Describe the factor affecting capital structure.

problem 3) prepare brief notes on:

a) Cash Management

b) Break Even Point

c) Cost Of Capital

problem 4) Mangal Ltd. Is consideration investing in a project requiring a capital outlay of Rs.2, 00,000.
Forecasted annual incomes after depreciation but before tax are as follows:

YEAR               1               2             3            4             5
INCOME      1,00,000    1,00,000    80,000    80,000    40,000

Depreciation may be taken as 20% on original cost of the asset and taxation at 50% of net income.

You are needed to evaluate the project according to each of the following methods:

i) Pay-back period,

ii) Average rate of return,

iii) Net present value and

iv) Profitability index.

The present value factor at 10% discount rate for I, II, III, IV and Vth year are: 0.909, 0.826, 0.751, 0.683 and 621 respectively.

Financial Management, Finance

  • Category:- Financial Management
  • Reference No.:- M94401

Have any Question? 

Related Questions in Financial Management

Sprint shoes inc had a beginning inventory of 9400 units on

Sprint Shoes Inc. had a beginning inventory of 9,400 units on January 1, 20X1. The costs associated with the inventory were: Material $ 13.00 per unit Labor 8.00 per unit Overhead 6.10 per unit During 20X1, the firm prod ...

Sedgewick arranged for an open-end construction loan from

Sedgewick arranged for an open-end construction loan from the Second National Bank not to exceed $50,000. The loan was closed and Sedgewick drew $30,000 initially. Three months later he drew the remaining $20,000. What i ...

A company pays a 050 dividend the dividend is expected to

A company pays a $0.50 dividend. The dividend is expected to grow at a 20% rate for the next two years. Thereafter, over the subsequent three years, its growth should decline linearly, ultimately reaching a stable, matur ...

In given figure we show three combinations of main effects

In given figure, we show three combinations of main effects and interactions for a 2 × 2 factorial design. Using the same 2 ×2 structure, with factor A defining the rows and factor B defining the columns, create a set of ...

1 the canning company has been hard hit by increased

1. The Canning Company has been hard hit by increased competition. Analysts predict that earnings (and dividends) will decline at a rate of 5 percent annually into the foreseeable future. If Canning's last dividend (D0) ...

Objectives apply the accounting equation evaluate business

Objectives : Apply the accounting equation; evaluate business operations. Compute the missing amount in the accounting equation for each company (amounts in billions):   Assets Liabilities Stockholders' Equity Beautiful ...

Simon fixtures corp is expected to pay 210 per share in

Simon Fixtures Corp. is expected to pay $2.10 per share in dividends at the end of the next 12 months. The growth rate in dividends is expected to be constant at 4% per year. If the stock is selling for $50 per share, wh ...

What is the value today of a 15-year annuity that pays 600

What is the value today of a 15-year annuity that pays $600 a year? The annuity’s first payment occurs six years from today. The annual interest rate is 11 percent for Years 1 through 5, and 13 percent thereafter. Presen ...

Butler products has prepared the following estimates for an

Butler Products has prepared the following estimates for an investment it is considering. The initial cash outflow is $20,000, and the project is expected to yield cash inflows of $4,400 per year for seven years. The fir ...

1 assume that the real risk-free rate is 35 and that

1. Assume that the real risk-free rate is 3.5% and that inflation is expected to be 5% in year, 1,4% in Year 2, and 3.5% thereafter. Assume also that all Treasury bonds are highly liquid and free of default risk. If 2-ye ...

  • 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

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

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