Scribd Logo
Upload

Welcome to Scribd!

  • 2 views

    Fm Sample Paper

    Uploaded by

    Apoorv Maheshwari

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd

    Fm Sample Paper

    Uploaded by

    Apoorv Maheshwari
    2 views10 pages

    Copyright

    © © All Rights Reserved

    Available Formats

    XLSX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    2 views10 pages

    Fm Sample Paper

    Uploaded by

    Apoorv Maheshwari

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    of 10

    Solution 1)

    Sources Book value % in total capital Market value % in total capital


    Esc ₹ 5,000,000.00 33.33% ₹ 8,000,000.00 38.10%
    Psc ₹ 2,000,000.00 13.33% ₹ 3,500,000.00 16.67%
    Debt ₹ 8,000,000.00 53.33% ₹ 9,500,000.00 45.24%
    Total ₹ 15,000,000.00 Total ₹ 21,000,000.00
    100.00% 100.00%
    Tax rate 50%

    WACC(BV) 8.33%

    WACC(MV) 9.02%
    Specific cost
    15%
    9%
    8%
    Solution2)

    Particulars Opening Closing Average


    RM ₹ 250,000.00 ₹ 350,000.00 ₹ 300,000.00
    WIP ₹ 160,000.00 ₹ 120,000.00 ₹ 140,000.00
    FG ₹ 300,000.00 ₹ 400,000.00 ₹ 350,000.00
    Debtors ₹ 300,000.00 ₹ 400,000.00 ₹ 350,000.00
    Creditors ₹ 200,000.00 ₹ 300,000.00 ₹ 250,000.00

    Sales ₹ 3,600,000.00
    Purchases ₹ 1,600,000.00
    Consumption ₹ 1,500,000.00
    Total Production cost ₹ 2,500,000.00
    Total Cost of goods sold ₹ 2,800,000.00
    Total Cost of Sales ₹ 3,000,000.00

    operating cycle period 115.9


    RMCP 72
    WPCP 20.16
    FGCP 45
    DPP 35
    CPP 56.25
    172.16
    115.91
    Solution 3)

    EBIT ₹ 3,000,000.00
    Debt ₹ 4,000,000.00
    Ke 12%
    Kd 8%

    EBIT ₹ 3,000,000.00
    interest ₹ 320,000.00
    EBT ₹ 2,680,000.00
    Value of equity ₹ 22,333,333.33
    Value of firm ₹ 26,333,333.33

    Ko 11.39%

    Case I
    EBIT ₹ 3,000,000.00
    Debt ₹ 6,000,000.00
    Ke 12%
    Kd 8%

    EBIT ₹ 3,000,000.00
    interest ₹ 480,000.00
    EBT ₹ 2,520,000.00
    Value of equity ₹ 21,000,000.00
    Value of firm ₹ 27,000,000.00

    Ko 11.11%

    Case II
    EBIT ₹ 3,000,000.00
    Debt ₹ 2,000,000.00
    Ke 12%
    Kd 8%

    EBIT ₹ 3,000,000.00
    interest ₹ 160,000.00
    EBT ₹ 2,840,000.00
    Value of equity ₹ 23,666,666.67
    Value of firm ₹ 25,666,666.67

    Ko 11.69%
    Solution 4) 0%
    20%
    r 8% 40%
    Ke 10% 60%
    EPS ₹ 20.00 80%
    100%
    Case 1
    DPr 100%
    Divedend paid ₹ 20.00

    Po ₹ 200.00
    Solution 5)

    PVF 0.1854736
    Cost of asset 360000

    Year Inflows PVF @0.1854736 Pv


    1 ₹ 80,000.00 0.844 ₹ 67,483.58
    2 ₹ 120,000.00 0.712 ₹ 85,388.12
    3 ₹ 130,000.00 0.600 ₹ 78,031.09
    4 ₹ 120,000.00 0.506 ₹ 60,759.43
    5 ₹ 160,000.00 0.427 ₹ 68,337.73
    PV of Inflows ₹ 359,999.96
    Pv of outflows ₹ 360,000.00
    NVp -₹ 0.04 ₹ -0.04

    - suppose IRR lies between 15% and 20%

    Year Inflows PVF @0.15 Pv PVF @0.2 Pv


    1 ₹ 80,000.00 0.870 ₹ 69,565.22 0.833 ₹ 66,666.67
    2 ₹ 120,000.00 0.756 ₹ 90,737.24 0.694 ₹ 83,333.33
    3 ₹ 130,000.00 0.658 ₹ 85,477.11 0.579 ₹ 75,231.48
    4 ₹ 120,000.00 0.572 ₹ 68,610.39 0.482 ₹ 57,870.37
    5 ₹ 160,000.00 0.497 ₹ 79,548.28 0.402 ₹ 64,300.41
    PV of Inflows ₹ 393,938.23 PV of Inflows ₹ 347,402.26
    Pv of outflows ₹ 360,000.00 Pv of outflows ₹ 360,000.00
    NVp ₹ 33,938.23 NVp -₹ 12,597.74

    IRR 18.65%

    - suppose IRR lies between 18% and 19%

    Year Inflows PVF @0.18 Pv PVF @0.19 Pv


    1 ₹ 80,000.00 0.847 ₹ 67,796.61 0.840 ₹ 67,226.89
    2 ₹ 120,000.00 0.718 ₹ 86,182.13 0.706 ₹ 84,739.78
    3 ₹ 130,000.00 0.609 ₹ 79,122.01 0.593 ₹ 77,144.06
    4 ₹ 120,000.00 0.516 ₹ 61,894.67 0.499 ₹ 59,840.25
    5 ₹ 160,000.00 0.437 ₹ 69,937.47 0.419 ₹ 67,047.90
    PV of Inflows ₹ 364,932.89 PV of Inflows ₹ 355,998.87
    Pv of outflows ₹ 360,000.00 Pv of outflows ₹ 360,000.00
    NVp ₹ 4,932.89 NVp -₹ 4,001.13

    IRR 18.55%
    Year Inflows
    0 -360000
    1 ₹ 80,000.00
    2 ₹ 120,000.00
    3 ₹ 130,000.00
    4 ₹ 120,000.00
    5 ₹ 160,000.00

    IRR 18.54736%
    Solution 6)
    A ltd B ltd
    Sales ₹ 10,000,000.00 ₹ 8,000,000.00
    VC ₹ 5,000,000.00 ₹ 3,000,000.00
    Contribution ₹ 5,000,000.00 ₹ 5,000,000.00
    Fc ₹ 2,250,000.00 ₹ 2,500,000.00
    EBIT ₹ 2,750,000.00 ₹ 2,500,000.00
    Int ₹ 750,000.00 ₹ 1,000,000.00
    EBT ₹ 2,000,000.00 ₹ 1,500,000.00

    Operating leverage 1.818 2


    Financial leverage 1.375 1.67
    Solution 7)

    Cost elements Amt per unit Rm in stock


    RM ₹ 100.00 WIP
    DL ₹ 40.00 FG
    Overheads ₹ 60.00 Credit allowed by suppliers
    S&D expenses ₹ 0.00 Credit allowed by debtors
    Cost of sales ₹ 200.00 Lag in payment of wages

    Selling price per unit ₹ 250.00


    Busted production 104000 Cash
    1 year 52 Weeks

    Statement of Working capital Requirement


    Particulars
    A CURRENT ASSETS
    i Cash
    ii Inventories
    RM ₹ 800,000.00
    WIP ₹ 600,000.00
    FG ₹ 1,600,000.00
    iii Debtors
    ₹ 3,200,000.00

    B CURRENT LIABILITIES
    i Creditors of RM
    ii Creditors of Wages

    Working Capital Requirement


    In weeks
    4
    2
    4
    4
    8
    2

    10% of Gross working capital

    Amount

    ₹ 688,888.89

    ₹ 3,000,000.00

    ₹ 3,200,000.00

    ₹ 6,888,888.89

    ₹ 800,000.00
    ₹ 160,000.00

    ₹ 960,000.00

    ₹ 5,928,888.89

    You might also like