Elementary Education in India
- The Flight to Free and CempulseryiF Edueatlen Is a
Fundamental Flight with the passage oi RTE Act, 2009 8:
SSA has been hannenlsed with the HTE mandate.
' Assess te primary edueatlen Inereased to 99% and upper
CASE:1 Multi-product BEP
Man Ltd. manufactures and sells the following products as per sales mix given. The
operating costs are also given.
Operating cost as % of sales
Total budgeted sales for one month is Rs.10,00,000.
An Introduction to Risk and Return
Professor Banikanta Mishra, WHU-Koblenz, Fall 2000
We learnt in stock-valuation that ks = RF + Risk Premium
Risk Premium should be equal to Amount of Risk x Risk-Premium per Unit
But, how do we measure risk?
Name- Bindhya Basini Mishra
Roll- [email protected]
Sale value per unit
Direct labour @
Rs.20 per labour
Practice Assignment - 1
1. If the rate is 21%, what is the PV of Rs.550 to be received after six months?
2. Bank Banque claims to double your money in 70 months. What rate is it offering?
3. A bank which follows quarterly compounding
Risk and Return
Xavier Institute of Management,
Measuring Risk of Shares
Re = RF + RP (Risk Premium)
Risk Premium = (Magnitude of) Risk x RP per Unit
So, we must learn how to measure Risk.
We need to understand how investors g
Time Value of Money
Professor of Finance
Xavier Institute of Management, XUB
Even in the absence of inflation,
even assets without risk
(say a guaranteed bank deposit)
give a return (call it the interest rate)
Valuation of Bond and
Professor Banikanta Mishra, XIMB, XUB,
Visiting Professor, University of Turin,
CF of the Typical Bond
What is TSP ?
Suppose a salesman has to visit n-cities .
He wishes to start from a particular city ,
visit each city once , and then return to
his starting point .
The objective is to select the sequence in
which the citie
MACHINE REPLACEMENT STRATEGY
Question 1 : A widget manufacturer operates two machines , each of which has a capacity of 1000 units
a year. They have an indefinite life and zero salvage value. The operating cost is $2 per widget. Widget is
a seasonal busin
Question-1: A share is currently selling for $65. The company is expected to pay a dividend of %2.50 per
share at the end of the year. It is reliably estimated that the share will sell for $78 at the end of the year.
a) Would you hold the share for one ye
Question-1: The earning per share of a company is $10. It has an internal rate of return of 15% and the
capitalization rate of the risk class is 12.5%. If Walter model is used (i) what should be the optimum payout ratio of the firm (ii) what would be the
Question 1 : A student obtains ANNUAL rainfall totals for Bedford, Bedforshire
for the years 1900-1988. The student draws a histogram and finds that the
station's annual rainfall totals can be approximated by a normal distribution with
a mean of 752.4mm a
PRESENT VALUE,FUTURE VALUE,ANNUITY,ANNUITY DUE,PERPETUITY
a. What is the relationship between discounting and compounding?
b. Distinguish between the present value factor and the annuity present value factor?
c. 1. What will $ 6,700 invested fo
RISK AND RETURN PORTFOLIO THEORY
Question 1: Calculate the Portfolio Return and Variance when the investment is made in equal
proportion. Also calculate the proportion of investment which will minimize the variance.
State of the
INVESTMENT CRITERIA- NPV, MODIFIED NPV, IRR, MODIFIED IRR, PROFITABILITY INDEX, ACCOUNTING
RATE OF RETURN
Question-1: The cash flow of the project is as follows. Decide if the project is acceptable when the
discount rate is 10%
BOND AND BOND VALUATION
Question 1 : A bond with face value $1000 , coupon rate 12% with a maturity period of 10years is selling
at 950. What is the current yield.
Answer: Current Yield=Coupon/Current Price=120/950=12.63%
Question 2: $1000 par value bond
Profit under alternative costing methods
Manufactured during the period*
Unit selling price
Admin., Selling & Distribution cost (Fixed)
How much is the profit under total costing &
marginal costing if 10,0
Financial Markets History &
January March 2009
What is your Dollar Return if you buy a stock for $200 and sell it for $225 after a year?
Buy stock for $200
Sell stock for
Climate Change Adaptation (CCA)
Climate change has become real and tangible, affecting peoples lives worldwide. It is a major
challenge for agriculture, food security and rural livelihoods. Agriculture is the sector most
vulnerable to climat
UNIFORM ANNUITY SERIES SAMPLE SOLVED QUESTION
Question : Bob bought a Honda Civic for 15000.The maintenance cost and the price of used Honda Civic
are as follows:
Price of the Honda Car
MACHINE REPLACEMENT STRATEGY
Question : A widget manufacturer operates two machines , each of which has a capacity of 1000 units a
year. They have an indefinite life and zero salvage value. The operating cost is $2 per widget. Widget is a
PENSION FUND OBLIGATION SAMPLE SOLVED QUESTION
Question : Suppose you are a pension fund consultant to an organization and you are trying to estimate
the present value of pension obligation , which are expected as follows:
EVALUATION THE CASH FLOW OF PROJECTS WITH UNEQUAL LIVES.
Question : Following are the three projected crop harvest of a farmer.
Project A: Initial Investment $100 , Return on 4th year $300
Project B: Initial Investment $100 , Return on 1 st year 150
PROFORMA FINANCIAL STATEMENT AND PROJECT CASH FLOW
Question : ABC Inc can sell 5000 cans of cold drinks per year $4 each and its cost price is $2.50. The
project has a life of 3 years and return expected is 20%. Fixed cost is $20000 per annum. Investment
CAPITAL RESTRUCTURING BREAKEVEN EBIT
Question : ABC company has 200000 shares and the current share price is $20. The company wants to
infuse debt of $1m. If the restructuring is expected to increase EPS , what is the minimum level of EBIT
AMORTIZATION OF A LOAN
Question : A loan of $22000 at an interest rate of 12% compounded annually to be repaid over 6 years
period. What is the EMI and show the amortization table.
LOAN REPAYMENT INSTALMENT
Question : A loan of 20,000 is being repaid by 20 semi-annual payments, with the first payment made
one-half year after the loan. The first ten payments are K each and the final ten payments are K+200
each. Find K if the effectiv
MACRS DEPRICIATION AND CASH-FLOW
Question : ABC Company purchased a computerized system at $160000 and follows 5-year MACRS
depreciation. What is the after tax cash flow if the computer system is sold in 4 th year at $10000 and also
if sold at $30000.
20 Microns Ltd.
3I Infotech Ltd.
3M India Ltd.
52 Weeks Entertainment Ltd.
63 Moons Technologies Ltd.
7Nr Retail Ltd.
7Seas Entertainment Ltd.
8K Miles Software Services Ltd.
A 2 Z Infra Engg. Ltd.
A A R V Infratel Ltd.
A B B India Ltd.
A B C