In January 2008, Apex Company Ltd. issued 5000 shares tk. 100 each and took bank loan tk. 200,000 at interest rate 15%. The Board of Directors of the company decided to invest tk. 600,000 in fixed assets and the Name: ID: Sec: Page 2 of 4 remaining amount in current assets. During the year 2008, the company earned net cash flow tk. 250,000 before paying interest and tax. Because of the growth opportunity, the company has set dividend payout ratio as 15%. (a) Who are the stakeholders and stockholders of Apex Company Ltd.? (b) Calculate the total fund the company generated. Identify the sources of fund of the company and their proportion to the total fund in 2008. (c) Show graphically fund flow and value distribution among different stakeholders of Apex Co. Ltd based on the given information. (Calculate appropriate figures for appropriate party)

In January 2008, Apex Company Ltd. issued 5000 shares tk. 100 each and took bank loan tk. 200,000 at interest rate 15%. The Board of Directors of the company decided to invest tk. 600,000 in fixed assets and the Name: ID: Sec: Page 2 of 4 remaining amount in current assets. During the year 2008, the company earned net cash flow tk. 250,000 before paying interest and tax. Because of the growth opportunity, the company has set dividend payout ratio as 15%. (a) Who are the stakeholders and stockholders of Apex Company Ltd.? (b) Calculate the total fund the company generated. Identify the sources of fund of the company and their proportion to the total fund in 2008. (c) Show graphically fund flow and value distribution among different stakeholders of Apex Co. Ltd based on the given information. (Calculate appropriate figures for appropriate party)

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Question

In January 2008, Apex Company Ltd. issued 5000 shares tk. 100 each and took bank
loan tk. 200,000 at interest rate 15%. The Board of Directors of the company decided
to invest tk. 600,000 in fixed assets and the Name: ID: Sec: Page 2 of 4 remaining
amount in current assets. During the year 2008, the company earned net cash flow
tk. 250,000 before paying interest and tax. Because of the growth opportunity, the
company has set dividend payout ratio as 15%. (a) Who are the stakeholders and
stockholders of Apex Company Ltd.? (b) Calculate the total fund the company
generated. Identify the sources of fund of the company and their proportion to the
total fund in 2008. (c) Show graphically fund flow and value distribution among
different stakeholders of Apex Co. Ltd based on the given information. (Calculate
appropriate figures for appropriate party)

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