# Ms4 Solved Assignment

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IGNOU MBA MS - 04 Solved Assignment 2011
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Course Code : MS - 04
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Course Title : Accounting and Finance for Managers
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Assignment Code : MS-04/SEM - I /2011
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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. &amp; L. A/cBank Loan (Long-term)CreditorsBills Payable |
(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……….
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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…….
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4. What is capital structure? Discuss the determinants of capital