1.HP Inc bargains in PC and IT fittings and peripherals. The normal income for the following 8 years is as per the following:

Years Sales Income ($ Million)

1 7

2 9

3 11

4 23

5 32

6 85

7 56

8 55

Summed up monetary situation as on 31 Walk 2020 was as per the following:

$ Million

Liabilities Amount Assets Amount

Value Stocks 20 Fixed Resources (Net) 14

12% Bonds 8 Current Assets 3

20 20

Extra Data:

(a) Its variable costs is 40% of deals income and fixed working costs (cash) are assessed to be as per the following:

Period Amount ($ Million)

1-4 years 1.6

5-8 years 2

(b) An extra ad and deals advancement crusade will be dispatched requiring use according to following subtleties:

Period Amount ($ Million)

1 year 0.50

2-3 years 4.50

4-6 years 9.00

7-8 years 8.00

(c) Fixed resources are dependent upon devaluation at 15% according to WDV technique.

(d) The organization has arranged extra capital consumptions (in the start of every year) for the coming 8 years as follows:

Period Amount ($ Million)

1 1.50

2 2.80

3 3.00

4 4.50

5 5.50

6 6.50

7 7.50

8 8.00

(e) Investment in Working Capital is assessed to be 10% of Income.

(f) Applicable assessment rate for the organization is 20%.

(g) Cost of Value is assessed to be 16%.

(h) The Free Income of the firm is relied upon to develop at 5% per annuam following 8 years.

With above data you are need to decide the:

(i) Value of Firm

(ii) Value of Value

2. Serious level of monetary influence implies:

(a) High obligation extent

(b) Lower obligation extent

(c) Equivalent obligation and value

(d) No obligation

3. Working influence emerges in view of:

(a) Fixed Expense of Creation

(b) Fixed Interest Cost

(c) Variable Expense

(d) Nothing unless there are other options

4. Monetary Influence emerges on account of:

(a) Fixed expense of creation

(b) Variable Expense

(c) Interest Cost (

d) Nothing from what was just mentioned

5. Working Influence is determined as:

(a) Commitment EBIT

(b) EBITPBT

(c) EBIT Interest

(d) EBIT Tax

6. Monetary Influence is determined as:

(a) EBIT Commitment

(b) EBIT PBT

(c) EBIT Deals

(d) EBIT Variable Expense

7. Which blend is for the most part useful for firms

(a) High OL, High FL

(b) Low OL, Low FL

(c) High OL, Low FL

(d) None of these

8. Consolidated influence can be utilized to gauge the connection between:

(a) EBIT and EPS

(b) PAT and EPS,

(c) Deals and EPS,

(d) Deals and EBIT

9. FL is zero if:

(a) EBIT = Interest

(b) EBIT = Zero,

(c) EBIT = Fixed Expense,

(d) EBIT = Pref. Profit

10. Business hazard can be estimated by:

(a) Monetary influence

(b) Working influence

(c) Consolidated influence

(d) Nothing from what was just mentioned