Finance Answers

4. From the following information pertaining to M/s ABC & Co. Ltd., prepare its trading, profit & Loss A/c for the year ending 31st March 2012 and summarized Balance Sheet as on that date.
Current ratio - 2.5
Quick Ratio - 1.3
Proprietary ratio - 0.06
Gross Profit to sales - 10%
Debtors Velocity - 40 days
Sales - 2,73,000
Working capital - 1,20,000
Bank overdraft - 2,15,000
Share Capital - 2,50,000
Closing Stock is 10% more than opening stock
Net profit 10% of proprietary fund

Detail difference on visible and invisible exports in foreign trade?
Differentiate on regionalism V/S Multilaterlism ?

From the following information pertaining to M/s ABC & Co. Ltd., prepare its trading, profit & Loss A/c for the year ending 31st March 2012 and summarized Balance Sheet as on that date.
Current ratio - 2.5
Quick Ratio - 1.3
Proprietary ratio - 0.06
Gross Profit to sales - 10%
Debtors Velocity - 40 days
Sales - 273000
Working capital - 120000
Bank overdraft - 215000
Share Capital - 250000
Closing Stock is 10% more than opening stock

4. Test the significance of variation of the retail prices of the commodity in three principle cities; Bombay, Kolkata and Delhi. The four shops were chosen at random in each city and prices observed in rupees were as follows
Bombay 16 8 12 14
Kolkata 14 10 10 6
Delhi 4 10 8 8

Funds flow analysis represents a stock to flow linkage.” – Justify.

Explain fully the concept of net present value. Why must firms use net present value to determine if an investment is profitable

If a $500 bond bearing 9.5% semi-annual coupons is purchased at 97.5 and it is redeemable at 102 in four years’ time, what is the approximate yield rate?
(8 marks)

Compute the premium or discount on the sale of a $2,000 bond redeemable at 101.5 in four years’ time, if it is bought to yield 12%, compounded quarterly and the coupon rate is 10.75% semi-annually and What is the purchase price of the bond ?

6. At what price should I offer to buy a $500 bond on December 11, 2008, if I want it to yield 13%, compounded quarterly? The bond matures on April 1, 2012, and bears 11.5% coupons payable on April 1 and October 1.

4. What should be the purchase price of a $1,000 bond redeemable at 105 and bearing semi-annual coupons at 9.75%, if it is sold two years before maturity and money is worth 11%, compounded annually?