Question
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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