Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Dear all, i had told you about C1 assignment in last class. I have uploaded the following in Quicforce as well. C1 Assignment (15% weightage)

Dear all, i had told you about C1 assignment in last class. I have uploaded the following in Quicforce as well.

"C1 Assignment (15% weightage) 1. Select five companies from NIFTY 50 list, all from a different industry (PLEASE DON'T select any banking or financial services company) 2. Make a summary of the latest annual financial statements as of March 2020 (income statement, balance sheet) of each of these five companies. Make sure you are clearly showing the main line items in each. Make this in excel sheet. 3. Calculate the Degree of Operating Leverage, Degree of Financial Leverage and Degree of Combined Leverage for all five cos. All the formulae should be clearly written in your 5. More insights/ meaningful comments, and a well-laid-out, self-explanatory worksheet will fetch you more marks. 6. Upload the excel worksheet on Quicforce by 23:59 hrs on 5th Nov. 7. Please provide tye answer as soon as possible.

Leverage can change each year, depending on composition of variable and fixed cost. You should work out degree of operating, financial and combined leverage based on latest year only.

So I don't expect you to back-test for past years. In order to do that rigorously would require going through huge amount of financial data, go through last year's guidance given by Management/ investors presentations, analysts estimates etc etc.

Let's avoid it.

1. Select five companies from NIFTY 50 list, all from a different industry ( Tata reliance Infosys Bharat petroleum and Wipro) 2. Make a summary of the latest annual financial statements as of March 2020 (income statement, balance sheet) of each of these five companies. 3. Calculate the Degree of Operating Leverage, Degree of Financial Leverage and Degree of Combined Leverage for all five cos. All the formulae should be clearly written in your excel worksheet. More insights/ meaningful comments, and a well-laid-out, self-explanatory worksheet will fetch you more marks.

you will get the balance sheet and income statement pn internet for 2020 I am adding one.photo so that you will know how the answer should be. if possible please help me in this question as this carries 15% weightage in my finals.

image text in transcribed

this is example of one company from NIFTY 50

H K 1 M N U 13.552.00 DICIA Total revenue Experi variable Cost COTTOM Cha WDWARE DIL OF CILA DOLCI 115 Vw Cost 4 Sales Verlaw 14 ARE M FC Coutin ERIT Degree of Operation . 44 Com FRIT 3.58 1.14 Total variable Cout Fund Cont EBT Total Cast Short Term Derrawings $9. 1.00 no DOLCIFLA DELLA Der er H K 1 M N U 13.552.00 DICIA Total revenue Experi variable Cost COTTOM Cha WDWARE DIL OF CILA DOLCI 115 Vw Cost 4 Sales Verlaw 14 ARE M FC Coutin ERIT Degree of Operation . 44 Com FRIT 3.58 1.14 Total variable Cout Fund Cont EBT Total Cast Short Term Derrawings $9. 1.00 no DOLCIFLA DELLA Der er

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Corporate Finance Investment And Advisory Applications

Authors: Jesse McDougall, Patrick Boyle

1st Edition

1530116597, 9781530116591

More Books

Students also viewed these Finance questions

Question

Did you add the logo at correct size and proportion?

Answered: 1 week ago