Strategic Financial Management Kailash Ltd. Earns Operating Profit (EBIT) of Rs.1,80,00,000 at existing capital structure.

Published on May 2018 | Categories: Management | Downloads: 325 | Comments: 0 | Views: 922
Download PDF   Embed   Report

NMIMS SOLVED ASSIGNMENTS AVAILABLE- 09773820734 GET SOLVED ASSIGNMENTS VISIT WWW.MBASOLVEDASIGNMENT.COM Or Mail us at [email protected] Contact- 9773820734 (WHATSAPP) YOU MAY CALL US ON – 09773820734 (WHATSAPP ) Internal Assignment Applicable for JUNE 2018 Examination Course: Strategic Financial Management 1. From the following details supplied by Amaya Plastics ltd. you are required to: a. Calculate the Net Present Value b. Calculate the Discounted Payback Period For each Capital Expenditure proposal given below: Details Proposal A Proposal B Initial Cost Rs. 20,00,000 Rs. 15,00,000 Expected life 10 years 8 years Cash flows before tax after depreciation Rs. 3,00,000 each for first four years Rs. 2,00,000 for next 6 years Rs. 2,00,000 each for first five years Rs. 3,00,000 for last three years Estimated scrap value Rs. 50,000 Rs. 1,00,000 The discounting factor is 12% and tax rate 30%. (10 Marks) 2. Kailash Ltd. Earns Operating Profit (EBIT) of Rs.1,80,00,000 at existing capital structure. You are required to calculate financial leverage and EPS with the help of Following information Particulars Amount in Rs 13.5% Debentures ( FV 100) 4,00,00,000 15% Cumulative Preference Shares( FV 100) 1,00,00,000 Equity Share Capital ( FV 10) 3,00,00,000 8,00,00,000 Tax rate 35% (10 Marks) 3. A) Naysha Ltd. has the following capital structure as on 31st March,2017 10% debentures (before tax) (Rs) 300000 9% preference shares (Rs) 200000 Equity shares of Rs.100 each 500000 Total 1000000 The equity shares of the company are quoted at Rs.102 and the company is expected to declare a dividend of Rs.9 per share for the year. Tax rate is 40% required. Calculate the cost of capital (5 Marks) 3. B. Discuss the cheapest form of raising long term finance with reference to Question 3 (A) and state the reasons for the same. (5 Marks) Course: International Finance 1. Finance minister Mr. Arun Jaitley announced in the budget about long term capital gain tax, share market gave negative reaction on it, explain the reaction of FII or FPI on long term capital gain tax. (10 Marks) 2. “The Eurocurrency market owes its existence to differences in national financial regulation combined with declining barriers to international capital movements.” Do you agree with the statement? Explain with the help of various Euro-Currency Market instruments. (10 Marks) 3. The Chinese government’s move to ban waste paper amidst environment concerns is expected to benefit the Indian paper manufacturers.Waste Paper (WP) is one of the major sources of raw material used for manufacturing the recycled paper products. The recycled paper products are extensively used for manufacturing packaging materials like corrugated boxes.The Chinese Government’s decision to ban waste paper imports has caused a drop in global waste paper prices. As a result, the price of recycled paper in China, used for packaging material, has increased due to short supply of WP. Indian manufacturers using waste paper stand to benefit on account of lower global waste paper prices (on excess supply) and higher realization for recycled paper.The global shortage of wood pulp has resulted in increasing prices of finished paper. Indian wood pulp based having requisite self-sourcing (farm forestry) are expected to benefit from increasing global finished paper prices.The companies like West Coast Paper, TNPL and NR Agarwal Industries which majorly import waste paper for manufacturing processed recycled paper are expected to improve margins on account of falling waste paper prices. As per the industry reports, the global price fall in waste paper is evident as the old corrugated containers (OCC), the most common form of waste paper, fell from €150 per tonne in July 2017 to €135 per tonne in December 2017. Also, the prices of Kraftliner, the recycled paper manufactured by processing the waste paper, have risen from €642 per tonne in July 2017 to €694 per tonne in December 2017. a. Paper manufacturing Industry is one of the important industry for India and China, from above paragraph explain the positive and negative effects on the revenue of Indian paper exporter. (5 Marks) b. What will the impacts on FOREX because of Government of China Decision on paper bans? How India can take advantage of it? (5 Marks) GET SOLVED ASSIGNMENTS VISIT WWW.MBASOLVEDASIGNMENT.COM Or Mail us at [email protected] Contact- 9773820734 (WHATSAPP)

Comments

Content

NMIMS SOLVED ASSIGNMENTS AVAILABLE- 09773820734 GET SOLVED ASSIGNMENTS VISIT WWW.MBASOLVEDASIGNMENT.COM Or Mail us at [email protected] Contact- 9773820734 (WHATSAPP) YOU MAY CALL US ON – 09773820734 (WHATSAPP ) Internal Assignment Applicable for JUNE 2018 Examination Course: Strategic Financial Management 1. From the following details supplied by Amaya Plastics ltd. you are required to: a. Calculate the Net Present Value b. Calculate the Discounted Payback Period For each Capital Expenditure proposal given below: Details Proposal A Proposal B Initial Cost Rs. 20,00,000 Rs. 15,00,000 Expected life 10 years 8 years Cash flows before tax after depreciation Rs. 3,00,000 each for first four years Rs. 2,00,000 for next 6 years Rs. 2,00,000 each for first five years Rs. 3,00,000 for last three years Estimated scrap value Rs. 50,000 Rs. 1,00,000 The discounting factor is 12% and tax rate 30%. (10 Marks) 2. Kailash Ltd. Earns Operating Profit (EBIT) of Rs.1,80,00,000 at existing capital structure. You are required to calculate financial leverage and EPS with the help of Following information Particulars Amount in Rs 13.5% Debentures ( FV 100) 4,00,00,000 15% Cumulative Preference Shares( FV 100) 1,00,00,000 Equity Share Capital ( FV 10) 3,00,00,000 8,00,00,000 Tax rate 35% (10 Marks) 3. A) Naysha Ltd. has the following capital structure as on 31st March,2017 10% debentures (before tax) (Rs) 300000 9% preference shares (Rs) 200000 Equity shares of Rs.100 each 500000 Total 1000000 The equity shares of the company are quoted at Rs.102 and the company is expected to declare a dividend of Rs.9 per share for the year. Tax rate is 40% required. Calculate the cost of capital (5 Marks) 3. B. Discuss the cheapest form of raising long term finance with reference to Question 3 (A) and state the reasons for the same. (5 Marks) Course: International Finance 1. Finance minister Mr. Arun Jaitley announced in the budget about long term capital gain tax, share market gave negative reaction on it, explain the reaction of FII or FPI on long term capital gain tax. (10 Marks) 2. “The Eurocurrency market owes its existence to differences in national financial regulation combined with declining barriers to international capital movements.” Do you agree with the statement? Explain with the help of various Euro-Currency Market instruments. (10 Marks) 3. The Chinese government’s move to ban waste paper amidst environment concerns is expected to benefit the Indian paper manufacturers.Waste Paper (WP) is one of the major sources of raw material used for manufacturing the recycled paper products. The recycled paper products are extensively used for manufacturing packaging materials like corrugated boxes.The Chinese Government’s decision to ban waste paper imports has caused a drop in global waste paper prices. As a result, the price of recycled paper in China, used for packaging material, has increased due to short supply of WP. Indian manufacturers using waste paper stand to benefit on account of lower global waste paper prices (on excess supply) and higher realization for recycled paper.The global shortage of wood pulp has resulted in increasing prices of finished paper. Indian wood pulp based having requisite self-sourcing (farm forestry) are expected to benefit from increasing global finished paper prices.The companies like West Coast Paper, TNPL and NR Agarwal Industries which majorly import waste paper for manufacturing processed recycled paper are expected to improve margins on account of falling waste paper prices. As per the industry reports, the global price fall in waste paper is evident as the old corrugated containers (OCC), the most common form of waste paper, fell from €150 per tonne in July 2017 to €135 per tonne in December 2017. Also, the prices of Kraftliner, the recycled paper manufactured by processing the waste paper, have risen from €642 per tonne in July 2017 to €694 per tonne in December 2017. a. Paper manufacturing Industry is one of the important industry for India and China, from above paragraph explain the positive and negative effects on the revenue of Indian paper exporter. (5 Marks) b. What will the impacts on FOREX because of Government of China Decision on paper bans? How India can take advantage of it? (5 Marks) GET SOLVED ASSIGNMENTS VISIT WWW.MBASOLVEDASIGNMENT.COM Or Mail us at [email protected] Contact- 9773820734 (WHATSAPP)

Sponsor Documents

Or use your account on DocShare.tips

Hide

Forgot your password?

Or register your new account on DocShare.tips

Hide

Lost your password? Please enter your email address. You will receive a link to create a new password.

Back to log-in

Close