Ms4 Solved Assignment

5909 Words24 Pages
IGNOU MBA MS - 04 Solved Assignment 2011 ------------------------------------------------- Course Code : MS - 04 ------------------------------------------------- Course Title : Accounting and Finance for Managers ------------------------------------------------- Assignment Code : MS-04/SEM - I /2011 ------------------------------------------------- Coverage : All Blocks Note: Answer all the questions and send them to the Coordinator of the Study Centre you are attached with. 1. Following are the balance sheets of a limited company as on 31st December, 2009 and 2010. Liabilities | 2009Rs. | 2010Rs. | Assets | 2009Rs. | 2010Rs. | Share Capital Reserves P. & L. A/cBank Loan (Long-term)CreditorsBills Payable |…show more content…
(ii) Profitability of the merged plant at 80% capacity utilization. (iii) Sales turn over of the merged plant to earn a profit of Rs. 75 lakhs. (iv) When the merged plant is working at a capacity to earn a profit of Rs. 75 lakhs what percentage increase in selling price is required to sustain an increase of 5% in fixed overheads. Solution : coming soon………. ------------------------------------------------- 3. A company is considering to select a project out of the two mutually exclusive projects. The Company’s cost of capital is 10% and the net after tax cash flow of ht project are as follows.: Year 0 1 2 3 4 5 Project X (Rs.) 2,00,000 35,000 80,000 90,000 75,000 20,000 Project Y (Rs.) 2,00,000 2,18,000 10,000 10,000 4,000 3,000 (i) Calculate the NPV and IRR of each project. (ii) State, with reasons, which project you would recommended. The discount factors are as follows: Year 0 1 2 3 4 5 Discount Factor At 10% 1 0.91 0.83 0.75 0.68 0.62 At 20% 1 0.83 0.69 0.58 0.48 0.41 Solution : coming soon……. ------------------------------------------------- 4. What is capital structure? Discuss the determinants of capital

    More about Ms4 Solved Assignment

      Open Document