QUESTION 45 The Investment portfolio of XYZ Ltd. as on 31.03.2020 consisted of the following: (Rs. in lacs) Current Investments Cost Fair Value as on 31.03.2020 (1) 1000 Equity Shares of A Ltd. 7 (2) 500 Equity Shares of B Ltd. 10 15 (3) 1000 Equity Shares of C Ltd. 15 12 Total 30 34 Give your comments on the following: (i) The company wants to value the above portfolio at Rs. 30 lakhs being lower of cost or fair market value. (ii) Company wants to transfer 1000 Equity Shares of C Ltd. from current investments to long term investments on 31.03.2020 at cost of Rs. 15 lakhs.

QUESTION 45 The Investment portfolio of XYZ Ltd. as on 31.03.2020 consisted of the following: (Rs. in lacs) Current Investments Cost Fair Value as on 31.03.2020 (1) 1000 Equity Shares of A Ltd. 7 (2) 500 Equity Shares of B Ltd. 10 15 (3) 1000 Equity Shares of C Ltd. 15 12 Total 30 34 Give your comments on the following: (i) The company wants to value the above portfolio at Rs. 30 lakhs being lower of cost or fair market value. (ii) Company wants to transfer 1000 Equity Shares of C Ltd. from current investments to long term investments on 31.03.2020 at cost of Rs. 15 lakhs.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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QUESTION 2 (25 MARKS) (a) A firm has determined its optimal capital structure which is composed of the following sources and target market value proportions.Source of Capital Target Market ProportionsLong Term Debt25% Preferred Stock15% Common Stock60% Total Firm Value100%Debt:The firm can sell a 10-year, RM1,000 par value, 6% bond for RM945. 3Preferred Stock:The firm has determined it can issue preferred stock at RM70per share par value. The stock will pay a RM8annual dividend. Common Stock:A firm's common stock is currently selling for RM19per share. The dividend expected to be paid at the end of the coming year is RM1.85. Its dividend payments have been growing at a constant rate for the last four years. Four years ago, the dividend was RM1.50. Additionally, thefirm's marginal tax rate is 35%. Determine the weighted average cost of capital for the firm. (15 marks)
What is the return on the following investment? Original Cost or Selling Price of Distributions Percent Investment Invested $ Investment Received $ Return Stock $34.00 $26.00 $2.00 -16.11% -14.5% -17.65% -19.35% -21.23%
Question 10?
help please provide the correct answer with correct option pls
Which of the following capital structures is optimal? Debt Equity EPS Stock Price 40% 60% $2.95 $26.50 50% 50% $3.05 $28.90 60% 40% $3.18 $31.20 70% 30% $3.31 $30.00 80% 20% $3.42 $30.40 Question 1 options: 40% debt 50% debt 60% debt 70% debt 80% debt