IBFS.D.3.A

IBFS.D.3.A - Name:. Set-A Roll No. IBFS-D: Internal test-3...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Set-A Name:……………………. Roll No…………………. .… IBFS-D: Internal test-3 (Date: 30.8.2008) Total Marks: 15 Time: 45 Minutes Note: Attempt both questions. Each question carries 7.5 marks. 1. ABCL has decided to invest in equipment for which the following particulars are available. A Cost of the equipment Rs 42 lakh B Tax relevant rate of depreciation 25% C Useful life 3 years D Estimated net salvage value after 3 years Negligible ABCL has received a lease proposal from XYZL to structure a finance lease on the following terms: E Nature of Lease Finance Lease F Lease Rental Rs 47.50 Per thousand G Mode of Payment Monthly in advance H Period of Lease 3 Years The other details of the transaction are as follows. Marginal cost of Capital for ABCL 15% Marginal cost of debt for ABCL 16% ( Pre-tax) K Minimum rate of return required by XYZL on Lease portfolio 14% CALCULATE THE FOLLOWING a. Break even rentals for the Lessor b. Break even rentals for the Lessee (3.75+3.75 =7.5 marks) 1
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
2. ABCL offers the factoring services on the terms and conditions given below.
Background image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 2

IBFS.D.3.A - Name:. Set-A Roll No. IBFS-D: Internal test-3...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online