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Monday, July 23, 2012

::: vuaskari.com ::: today mgt201 paper 23-07-2012


  1. What are causes of high basic business risk? Any three
  2. What costs and benefits of holding inventories and cash
  3. Can creditors of company affect its dividend policy (yes or no)
  4. If estimated sale are Rs.40000.profit margin is 20% and plowback ratio is 25% then calculate expected estimated retained earnings.
  5. Why are some firms building manufacturing plants abroad even they can build them at homes?

 

  1. ABC Coporation expects to have the following data during the coming year . Asset Rs.200000, interest rate 8% debt/ASSETS, book value 65%, tax rate 40% EBIT Rs. 25000. Required =what is the firms expected R0e ?

 

  1. ABC Company pays coupon on its bond semiannually, calculate the intrinsic value of band under the following circumstance as 5 year bond with 13% coupon rate is selling at Rs. 1220. Face value of the bond is Rs. 1000. Required rate of return is 16%.
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