XYZ Ltd. has the following capital structure which is considered to be optimum as on 31st March, 2013 The company’s share has a market price of Rs23.60. Next year dividend per share is 50% of year 2013 EPS. The following is the trend of EPS for the preceding 10 years which s expected to continue in ...
A company plans to manufacture and sell 400 units of a domestic appliance per month at a price of Rs 600 each. The ratio of costs to selling price are as follows: Fixed overheads are estimated at Rs4,32,000 per annum. The following norms are maintained for inventory management: Raw materials 30 days...
The following accounting information and financial ratios of XYZ Ltd. relate to the year ended 31st December, 2013: If value of fixed assets as on 31st December, 2012 amounted to Rs 26 lakhs, prepare a summaried profit and loss account of the company for the year ended 31st December, 2013 and also t...
The following is the capital structure of Simons Company Ltd. as on 31.12.20X5: The market price of the company’s share is share would be declared for the year 20X6. The dividend growth rate is 6%: (i) If the company is in the 50% tax bracket, compute the weighted average cost of capital. (ii) Assum...
Balance Sheets of RST Limited as on March 31, 20X8 and March 31, 20X9 are as under: Additional information: (i) Depreciation charged on building and plant and machinery during the year 20X8-X9 were Rs.50,000 and Rs.1,20,000 respectively. (ii) During the year an old machine costing Rs. 1,50,000 was s...