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answer these 2 questions and also 3rd question Problem Following are the financial statements of EROG Incorporation. EROG Incorporation, Statement of Financial Position Cash 63,200

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answer these 2 questions and also 3rd question

Problem Following are the financial statements of EROG Incorporation. EROG Incorporation, Statement of Financial Position Cash 63,200 Accounts Receivable 31,500 Inventories 80,000 Property Plant & Equipment 294,500 Acc Dep: Plant & Machinery (60,000) 409,200 14,300 Account Payable Op Exp payable Dividend payable 17,800 12,200 Long term Loan 100,000 Common Stock, $5 Par 156,000 Premium on C/S 50,000 Retained earnings 58,900 *(8000 C/S were issued on Feb 01, 2019) 409,200 INCOME STATEMENT, for the year ended on Dec 2019 Net Sales 545,000 Cost of Goods sold -304,000 Gross Profit 241,000 Selling & Admin Exp (Inc Depreciation) -195,000 Net Profit 46,000 Net Profit after Tax 32,200 During the year, Plant & Machinery costing to Rs 95,000 with Acc Dep of Rs 39,000 have been sold at Rs 65,000. Loan Term Loan can be converted into 5,000 Common Stocks. a) Prepare Cash Flow Statement for Year 2019, with any method you like. b) Compute Basic and Diluted Earnings per Share. Question 3 : OGDCL has recently announced its earning of Rs. 40/- per share. The company has also announced dividend using historic Dividend payout ratio of 40%. It is expected that growth in dividend will be as follows: Year 1-3; 12%, Year 4-6; 8%, Year 7 onwards;4% If required rate of return is 15%, compute intrinsic value of OGDCL share. Dec, 2019 32,500 7,950 59,950 427,900 (100,500) 427,800 26,000 15,000 15,400 40,000 196,000 90,000 45,400 427,800 Dec, 2018

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