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Q 01: a) Explain the Dupont ratio. b) Assume a company reports the following financial data for two years: Year one net income =Rs. 180,000

Q 01: a) Explain the Dupont ratio.

b) Assume a company reports the following financial data for two years:

Year one net income =Rs. 180,000

Year one revenues =Rs. 300,000

Year one total assets =Rs. 500,000

Year one shareholder equity = Rs. 900,000

Year two net income =Rs.170, 000

Year two revenues =Rs.327, 000

Year two total assets =Rs.545, 000

Year two shareholder equity =Rs.980, 000

Required: Calculate the DuPont for year 1 and year 2?

Q 02: (a) A 5-yearordinary annuityhas a present value of Rs.500,000.If the interest rate is 8 percent, calculate the future value of annuity?

(b) An 8-yearannuity duehas a future value of Rs.500,000. If the interest rate is 5 percent, calculatethe present amount of annuity payment?

Q 03: What is the difference between annuity due and ordinary annuity. Why the interest amount of ordinary annuity is less than the annuity due?

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