Question 5 A company had the following balance sheet as on 31 March, 2021: Lisbilities Pin Crores Assets 7.50 Building ein Crores Equity Share Capital (75 lakhs Shares of 10 each) Reserves and Surplus 15% Debentures Current Liabilities 12.50 1.50 Machinery 15.00 Current Assets 6.25 6.00 Stock 3.00 Debtors Bank Balance 3.25 5.00 30.00 30.00 The additional information given is as under: Fixed cost per annum (excluding interest) 76 crores Variable operating cost ratio 60% Total assets turnover ratio 2.5 Income-tax rate 40% Calculate the following and comment: ) Earnings per share (#) Operating Leverage (ii) Financial Leverage (iv) Combined Leverage

Q: Describe the three-step process for estimating WACC.

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Q: Define three forms of EMH

A: Following are the three forms of EMH: Weak Form EMH: Recommends estimating all prior knowledge is…

Q: How do I compute for the Started,completed, and transferred-out in Weighted Average EUP?

A: Started units are units at total number of units at the start of the process. Completed and…

Q: What is the graphical representation of the distribution of a dataset? A) Histogram B) Pie Chart C)…

A: The incorrect answers are:B) Pie ChartPie charts are circular charts with slices reflecting…

Q: Define Horizontal analysis

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Q: Name the major subsystems of the conversion cycle.

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Q: Set out and explain the function of the p/e ratio

A: P/E ratio is a vital valuation ratio used in relative valuation methods. The function of pe ratio…

Q: Define Vertical analysis.

A: Financial statement analysis   Financial statement analysis are analyzed to understand the…

Q: Define compounding

A: A compounding is the interest charged on interest. When any investment is made for certain years,…

Q: Define each of the following terms:d. Flotation cost, F

A: Primary market is the place where company sells or offers new equity shares to the investors. New…

Q: data set? 4,5,9,3,10,11 show all work.

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Q: Describe the Scatterplot Method

A: The objective of the question is to understand the Scatterplot method, which is a graphical…

Q: Describe the revaluation model.

A: Introduction: The revaluation model stretches a business the option of carrying a fixed asset at its…

Q: What are the 4 sources of Regular Output VAT?

A: The four sources of regular output VAT (Value Added Tax) are: Sales of goods or services: When a…

Q: Define common size analysis

A: Financial statements are analyzed to determine the profit earning capacity of the business and also…

Q: Define conversion ratio

A: Ratios are used in financial analysis to determine different aspects about the financial condition…

Q: Describe and apply methods of vertical analysis.

A: Vertical analysis is the method which is helpful for financial statement analysis under which each…

Q: How do economies of scale and lumpy assets affect financialforecasting?

A: Economies of scale are cost advantages reaped by companies when production becomes efficient.…

Q: Explain the meaning of the following terms: markup,additional markup, markup cancellation, net…

A: Products are priced at the selling price and used to compare different product lines. The selling…

Q: How to calculate the mark up

A: The markup is calculated with the following formula:

Q: Define split-off point.

A: Contribution approach: The contribution approach calculates the net profit by calculating the…

Q: The first amount was inccorect

A: Solution:- When equal amount is paid each period at end of period, it is called ordinary annuity.…

Q: Describe the concept of an equivalent unit and how to compute equivalent units

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Q: Define two-bin method

A: Inventory: Inventory refers to the stock of goods purchased, utilized and maintained by the company…

Q: Write down the characteristics that defines operating segments.

A: Financial Accounting:   It refers to the process of recording the financial transactions of the…