You are a Financial Consultant with a share brokerage firm. You have been given the following information about a company: Share Capital : Equity (Rs.10) Rs. 4,00,000Current Liabilities Rs. 1,00,000 12% Preference Rs. 1,00,000Fixed Assets Rs. 9,50,000 General Reserve Rs. 1,84,000Current Assets Rs. 2,34,000 10% Debentures Rs. 4,00,000 Additional information: market price of the share is Rs. 34 and the net profit after tax was Rs. 1,50,000, and the tax had amounted to Rs. 50,000. From the above details, calculate Return on Investment, Return on Shareholders' Funds, EPS, Book value per share and P/E ratio. Also, make your observations about the company on the basis of these ratios.
You are a Financial Consultant with a share brokerage firm. You have been given the following information about a company: Share Capital : Equity (Rs.10) Rs. 4,00,000Current Liabilities Rs. 1,00,000 12% Preference Rs. 1,00,000Fixed Assets Rs. 9,50,000 General Reserve Rs. 1,84,000Current Assets Rs. 2,34,000 10% Debentures Rs. 4,00,000 Additional information: market price of the share is Rs. 34 and the net profit after tax was Rs. 1,50,000, and the tax had amounted to Rs. 50,000. From the above details, calculate Return on Investment, Return on Shareholders' Funds, EPS, Book value per share and P/E ratio. Also, make your observations about the company on the basis of these ratios.
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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