Other Economics Answers

The current market price of a share is RS 134 . The company has just paid a dividend of RS 3.50 with expected growth of 15% over next 6 year and a growth rate of 8% thereafter .find cost of capital

W Co is a retailer of barrels. The company has an annual demand of 30,000 barrels. The barrels 

cost TZS 2 each. Fresh supplies can be obtained immediately, with ordering and transport costs 

amounting to TZS 200 per order. The annual cost of holding one barrel in stock is estimated to 

be TZS 1.20.

A 2% discount is available on orders of at least 5,000 barrels and a 2.5% discount is available 

if the order quantity is 7,500 barrels or above.

Required: Calculate the EOQ ignoring the discount and determine if it would change once the 

discount is taken into account.

• What is the purpose of an income statement for a retail business?
• Which statement format do you choose? 
• Why did you choose this format? 
• What are the benefits and challenges of your statement choice for each stakeholder group?

XYZ Ltd. is considering the purchase of new machine. Two alternative machines (A & B) have been

suggested, each having initial cost of Rs. 10,00,000 and requiring Rs. 50,000 as additional working capital at

the end of 1st year. Net cash flows are expected to be as follows:

Year Machine A (in Rs.) Machine B (in Rs.)

1 1,00,000 3,00,000

2 4,00,000 6,00,000

3 4,00,000 3,00,000

4 4,00,000 5,00,000

5 3,00,000 2,00,000

The company has target return on capital of 10% and on this basis you are required to compare the

profitability of the machines and state which alternative you consider to be financially preferable.

For the employee termination and redundancy act in Jamaica , extract and explain the sections that an employer must observe with respect to the following:

1. Right to Compensation of the Employee (this should not 

be limited to basic pay only).

2. Right for Leave (paid time off