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Differentiate between purchased goodwill and internally generated goodwill. (
Upendo ltd wishes to take advantage of the new commercial paper now popular. It
wishes to issue two debenture papers. Both bear coupons of 12% and the effective yield
required on each is 20%. Paper A has a maturity of 10 years and paper B a maturity of
20 years. Both will be paying interest annually and Kshs. 100,000 at maturity. What is
the price of each paper? If the effective yield on each paper rises to 24%, what is the
price of each paper?
a) Differentiate between purchased goodwill and internally generated goodwill. (5 marks)
b) Upendo ltd wishes to take advantage of the new commercial paper now popular. It
wishes to issue two debenture papers. Both bear coupons of 12% and the effective yield
required on each is 20%. Paper A has a maturity of 10 years and paper B a maturity of
20 years. Both will be paying interest annually and Kshs. 100,000 at maturity. What is
the price of each paper? If the effective yield on each paper rises to 24%, what is the
price of each paper? (15 mks)
If you pay 1.5% per month on the out standard balance of your master card bill what effective annual rate you being charged?
a company employee earns 40,000 per year. A self-employed person also earns 40,000 but pays 6,120 for social security and 1,600 per year for health plan. how much will each person have left over?
A Nigerian visiting India changed #70200 to rupees at the rate of #3 to 3 rupees. He spent 224000 rupees and invested the remaining amount in the state bank of India at 4.5 % simple interest per annum. At the end of 8months, he transferred the capital and interest to his account in the Modern bank of Nigeria at the rate of 21rupees to #2. What was the amount in naira, credited to his account to the nearest naira
Find the optimum number of batches (to the nearest whole number) of an item that should be produced annually (in order to minimize cost) if 300,000 units are to be made, it costs $2 to store a unit for one year, and it costs $440 to set up the factory to produce each batch.
A. 26 batches
B. 28 batches
C. 18 batches
D. 20 batches
Find the optimum number of batches (to the nearest whole number) of an item that should be produced annually (in order to minimize cost) if 300,000 units are to be made, it costs $4 to store a unit for one year, and it costs $300 to set up the factory to produce each batch.
A. 32 batches
B 47 batches
C. 34 batches
D. 45 batches
The net profit before taxes as per the profit and loss account, of Gaman Ltd is Rs 269244. With the given set of information, classify the given items as (operating / investing / financing), share the correct classification with logical reasoning
And calculate the cash flow from operating activities
Loss on sale of asset
95780
dividend income
26000
interest income
35000
finance cost paid on debentures
12000
gain on sale of investment
45000
Depreciation on fixed assets
85000
Amortisation Expenses
110000
On 15 November in each of the years 1964 to 1979 inclusive an investor deposited 500$ in a special bank savings account. On 15 November 1983 the investor withdrew his savings. Given that over the period of 15 Nov 1964- 15 Nov 1965 the bank used an annual interest rate of 7% and thereafter an interest rate of 6% for its special savings accounts, find the sum withdrawn by the investor.
