Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Financial Management Expert

problem 1)a) A Rs. 2500 face value bond carries a coupon rate of 10% and matures after 5 years. The bond amount will be amortized equally over its life. Find out the present value of the bond if the investors required rate of return is 12%?

b) The following financial statements are provided for certain company for the calendar year 2003- 2004 (Rs.lakh):

Balance sheet @ Dec 31                 2003              2004
Share capital                                  100                 100
Reserves and surplus                       80                   90
Long term debt                              120                  150
Short term bank borrowings             70                    90
Trade creditors                                80                    70
Provisions                                       60                    50
Total                                              510                  550
Net fixed assets                              250                  280
Inventories                                     100                  120
Debtors                                         130                   120
Cash                                               20                     15
Other assets(Intangible)                   10                      15
Total                                             510                    550

Income Statements:

Particulars                                     2003               2004
Net sales                                        650                700
Cost of goods sold                          460                450
Operating expenses                         160                170
Non operating surplus                        50                 10
Interest                                             35                30
Tax                                                   10                30
Dividends                                           25                20

Consider depreciation as 20% of operating expenses.

Required:

• Create a table of changes in the items of the Balance Sheet.

• Create amplified funds flow statement.

• Create sources and uses of funds on cash basis.

problem 2)a) prepare a brief note on

i) Price – Earning Ratio

ii) Cost of a Specific Source of Finance.

b) Estimate the net working capital from the following information:

Particulars                  Cost(Rs per unit)

Raw materials               42.4
Direct labor                   15.9
Overheads                     31.8

Selling price Rs.106 per unit. Production 1,00,000 units per year. Raw materials in stock 4 weeks. Work-in-process stage 2 weeks. Finished goods stage 4 weeks. Credit allowed by suppliers 4 weeks. Credit allowed to debtors 8 weeks. Lag in payment of wages 1.5 weeks Lag in payment of overheads 4 weeks Cash on hand Rs.1, 25, 000. 80% of sales are credit sales. Assume 52 weeks a year.

Financial Management, Finance

  • Category:- Financial Management
  • Reference No.:- M96600

Have any Question? 


Related Questions in Financial Management

You plan to invest 75 of your funds in heebie ltd shares

You plan to invest 75% of your funds in Heebie Ltd shares and 25% in Jeebie Ltd shares. The expected return for Heebie is 10% and its standard deviation of returns is 5%. The expected return for Jeebie is 12% and its sta ...

Abc inc issued nine-year 9 percent semi-annual coupon bonds

ABC Inc. issued nine-year, 9 percent semi-annual coupon bonds at par. Today, the bonds are priced at $990. What is the firm’s after-tax cost of debt if the tax rate is 40%?

What are the goals a financial manager has when managing

What are the goals a financial manager has when managing working capital? What does the manager have under their control to effect the goals? What forces are working against each other in optimizing the goals of the mana ...

Ang electronics inc has developed a new dvdr if the dvdr is

Ang Electronics, Inc., has developed a new DVDR. If the DVDR is successful, the present value of the payoff (when the product is brought to market) is $35 million. If the DVDR fails, the present value of the payoff is $1 ...

A bank decides to create a five-year principal-protected

A bank decides to create a five-year principal-protected note on a non-dividend-paying stock by offering investors a zero-coupon bond plus a bull spread created from calls. The risk-free rate is 4% and the stock price vo ...

Gerry pays s w to buy a ten-year annuity with end-of-year

Gerry pays S W to buy a ten-year annuity with end-of-year payments of $1, 400. This purchase price allows her to replace her capital by means of a savings account that has an annual effective interest rate of 3% and also ...

You have accumulated 1269650 for your retirement how much

You have accumulated $1,269,650 for your retirement. How much money can you withdraw for the next 17 years in equal annual end-of-the-year cash flows if you invest the money at a rate of 8.17 percent per year compounded ...

It is now january 1 2016 and you are considering the

It is now January 1, 2016, and you are considering the purchase of an outstanding bond that was issued on January 1, 2014. It has a 9.5% annual coupon and had a 30-year original maturity. (It matures on December 31, 2043 ...

Do you agree with this statement the consequences of a

Do you agree with this statement the consequences of a repeat of the problems international markets faced in 2008, with the government unable to step in this time, would be that Australia would enter "the world of the co ...

Stock xyz has a current price of 5 per share last month xyz

Stock XYZ has a current price of $5 per share. Last month XYZ traded for a low of $4, and two months ago the same stock traded for a high of $6. Suppose you sell one share of XYZ short today at $5. Which of the following ...

  • 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