Economics Answers

Given the Earnings before interest and taxes(EBIT) is Rs 30000 Interest payment is Rs 10000

Dividend on the preference shares Rs9000

Taxes being 50% of the profit before taxes(PBT).

Number of outstanding equity shares 10000

  Weightage

For Numerical Answer

Assessment Parameter Weightage Understanding and usage 20%

of the formula

Procedure / Steps 50%

  20% Conclusion 20%

Correct Answer Interpretation

& 30%

What would be the earning per share(EPS) and degree of financial leverage (DFL), What would be the change in EPS, and DFL, if the EBIT increases to Rs50000 and Rs80000

Note- you have to calculate three EPS and three calculations for DFL

Why are IT resources described as a commodity?

Suppose you are land advisor to the Ministry of Lands, advice the minister of Lands how rural development will be achieved through land reform, supportive policies and integrated development objectives.

What is meant by land reform? Give some examples of supportive policy measures that might accompany land reform and explain how we can integrate rural development into the national economy planning toachieve national development.  (15)

Question 1

Batu Hampar Enterprise is a partnership business involved in homestay business at Yan, Kedah. Below is the financial information of the partnership:

a)   Divisible income of the business for the year ended 31 December 2019 is RM 12,000 and partnership remuneration and allowances is RM 34,000.

b)   The partners, Rahim and Jalil allocated with 6:4 profit/loss sharing ratio. Starting from 1st October 2019, Mamat join the partnership and the profit/loss allocation changed to 3:2:1 (Rahim: Jalil: Mamat).

c)    Allocation for partnership remuneration is also based on profit/ loss allocation ratio.

d)   Capital allowance for the year 2019 is RM 9,000.

e)   Donations was made at 31st July 2019 to Rumah Anak Yatim Al-Luqman (approved & receipt attached) cost RM 3,000.

Required:

Compute the total income for each partner for the year of assessment 2019. 

SANUMARC produces fingerlings for sell. The quantity x (kg) of these fingerlings demanded each week is related to the wholesale unit price p by the equation P = − 0.006x + 180 The weekly total cost incurred by SANUMARC for producing x kgs of fingerlings is C(x) = 0.000002x3 – 0.02x2 + 120x + 60,00 a. Find the marginal cost function C, [5] b. Find the marginal revenue function R’ [5] c. Find the marginal profit function P’ (5) d. Compute P’(2000) and interpret the results.

One of the principles of production includes that in order to produce goods and services which can be sold, and generate revenue and profits, a firm must purchase or hire scarce inputs, which are its factors of production. Product curves show the relationship between these additional factors of production such as labour or capital, and how much of a good is actually produced.