Question
1. The accompanying data is given for 3 organizations that are indistinguishable aside from their capital design: NIKE PUMA BATA Complete contributed capital 2,00,000 3,00,000
1. The accompanying data is given for 3 organizations that are indistinguishable aside from their capital design:
NIKE PUMA BATA
Complete contributed capital 2,00,000 3,00,000 4,00,000
Obligation/resources ratio 1.8 2.5 3.2
Offers outstanding 6,100 8,300 10,000
Pre assessment cost of debt 16% 13% 15%
Cost of equity 26% 22% 20%
Working Pay (EBIT) 25,000 25,000 25,000
Net Income 8,970 12,350 14,950
The assessment rate is uniform 35% in all cases.
(i) Compute the Weighted normal expense of capital for each organization.
(ii) Compute the Financial Esteemed Added (EVA) for each organization.
(iii) Based on the EVA, which organization would be considered for best venture? Give reasons.
(iv) If the business PE proportion is 11x, gauge the cost for the portion of each organization.
(v) Calculate the assessed market capitalisation for every one of the Organizations.
2.. On the off chance that the Genuine pace of return is 10% and Expansion s Cash Markdown Rate is:
(a) 14.4%
(b) 2.5%
(c) 25%
(d) 14%
3. On the off chance that the Cash Markdown Rate is 19% and Swelling Rate is 12%, the Genuine Rebate
Rate is:
(a) 7%
(b) 5%
(c) 5.70%
(d) 6.25%
4. Cash Markdown Rate if equivalent to:
(a) (1 + Swelling Rate) (1 + Genuine Rate)- 1
(b) (1 + Swelling Rate) 4-(1 + Genuine Rate)- 1
(c) (1 + Genuine Rate) 4-(1 + Swelling Rate)- 1
(d) (1 + Genuine Rate) + (1 + Swelling Rate)- 1
5. Genuine Rebate Rate is equivalent to:
(a) (1 + Inf. Rate) (1 + Cash D Rate)- 1
(b) (1 + Cash D Rate) + (1 + Inf. Rate)- 1
(c) (1 + Cash D Rate) 4-(1 + Inf. Rate)- 1
(d) (1 + Cash D Rate) - (1 + Inf. Rate)- 1
6. Two totally unrelated tasks with various monetary lives can measure up on the
premise of
(a) Interior Pace of Return
(b) Productivity Record
(c) Net Present Worth
(d) Identical Annuity Worth
7. Hazard in Capital planning infers that the chief knows___________of the
incomes.
(a) Inconstancy
(b)Probability
(c) Conviction
(d) Nothing unless there are other options
8. In Conviction comparable methodology, changed incomes are limited at:
(a) Bookkeeping Pace of Return
(b) Inside Pace of Return
(c) Obstacle Rate
(d) Hazard free Rate
9. Hazard in Capital planning is same as:
(a) Vulnerability of Incomes
(b) Likelihood of Incomes
(c) Assurance of Incomes
(d) Fluctuation of Incomes
10. Which of coming up next is a danger factor in capital planning?
(a) Industry explicit danger factors
(b) Rivalry hazard factors
(c) Undertaking explicit danger factors
(d) The entirety of the abovementioned
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