Ask Questions on Financial Management Public Class

(A). (2). A share is selling for Rs.60 on which a dividend of Rs.4 per share is expected at the end of the year. The expected market price after dividend declaration is to be Rs.70. Compute the following: - (10 marks)


(i) The return on investment ® in shares.
(ii) Dividend yield
(iii) Capital Gain Yield


Hello Sir please help me to solve this problem

Mr. Nimish holds the following portfolio.

Share Beta Investment
Alpha 0.9 Rs.12, 00,000
Beta 1.5 Rs. 3, 50,000
Carrot 1.0 Rs. 1, 00,000


What is the expected rate of return on his portfolio, if the risk rate is 7 per cent and the expected return on the market portfolio is 16 per cent?

Mr. Nimish holds the following portfolio.

Share Beta Investment
Alpha 0.9 Rs.12, 00,000
Beta 1.5 Rs. 3, 50,000
Carrot 1.0 Rs. 1, 00,000


What is the expected rate of return on his portfolio, if the risk rate is 7 per cent and the expected return on the market portfolio is 16 per cent?

(A). (1).Mr. Nimish holds the following portfolio. (10 marks)

Share Beta Investment
Alpha 0.9 Rs.12, 00,000
Beta 1.5 Rs. 3, 50,000
Carrot 1.0 Rs. 1, 00,000


What is the expected rate of return on his portfolio, if the risk rate is 7 per cent and the expected return on the market portfolio is 16 per cent?




(A). (2). A share is selling for Rs.60 on which a dividend of Rs.4 per share is expected at the end of the year. The expected market price after dividend declaration is to be Rs.70. Compute the following: -


(i) The return on investment ® in shares.
(ii) Dividend yield
(iii) Capital Gain Yield








(B) DIC Ltd. provides the following data:

Comparative trial balance

March 31 year 2 March 31 year 1 Increase(Decrease)
Debit Balance 20 10 10
Cash Rs.190 Rs. 90 Rs.100
Working capital (other than cash) 100 200 (100)
Investment (Long term) 500 400 100
Building and equipment 40 50 (10)

Total 850 750 100


Credit
Accumulated Depreciation 200 160 40
Bonds 150 100 50
Reserves 350 350 ---
Equity Shares 150 140 10

Total 850 750 100


Income Statement
For the period ending March 31, year 2
(Amount in Rs lakh)

Sales Rs.1000
Cost of Goods Sold 500
Selling Expense Rs.50
Administrative Expenses 50 100
Operating Income 400
Other charges
Gain on sale of building and equipment Rs 5
Loss on sale of investments (10)
Interest (6)
Taxes (189) (200)

Net Income after taxes 200

Notes: (a) The depreciation charged for the year was Rs.60 Lakh
(b) The Book value of the building and equipment disposed was Rs 10 Lakh
(c)
Prepare a Cash Flow Statement (Based on AS-3)



(C). (1). A. Ltd. produces a product which has a monthly demand of 4,000 units. The product requires a component X which is purchased at Rs.20. For every finished product one unit of component is required. The ordering cost is Rs.120 per order and the holding cost is 10 per cent per annum.
You are required to calculate:


(i) Economic order quantity
(ii) If the minimum lot size to be supplied is 4, 000 units, what is the extra cost, the company has to incur?
(iii) What is the minimum carrying cost, the company has to incur?





(C). (2). 4. Master Tools Ltd. Is currently operating its business at 75% level, producing 38275 units of a tools component and proposes to increase capacity utilization in the coming year by 33 1/3 % over the existing level of production. (10 marks)
The following data has been supplied:

(1)Unit cost structure of the product at current level:
Rs.
Raw Material 5
Wages 2
Overheads 3
Fixed Overhead 2
Profit 3
_____
15

(i) Raw Material will remain in stores for 1 month before issued for production. Material will remain in process for further 1 month. Suppliers grant 4 months credit to the company.
(ii) Finished goods remain in godown for 2 months
(iii) Debtors are allowed credit for 2 months.
(iv) Lag in wages and overheads payments in 1 month, and these expenses accrue evenly throughout the production cycle.
(v) No increase either in cost of inputs or selling price is envisaged

You are required to prepare a Projected Profitability statement and the Working Capital Requirement at new level, assuming that a minimum cash balan

Sir, I am preparing for my 2011 Acca exams can you kindly help me in FM.
FRANCIS EMEZI

Dear Sir, you did you MBA but your didn't mention the place and city etc can you help me in FM