Calculate the current ratio-quick ratio-debt equity ratio

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Reference no: EM132642043

Following information is available from the books of ABC Ltd. As of March 31st 2020 a listed company.

Liabilities-Rs (in L)

Common Equity (25 lakhs shares @2) -50

Preferred Equity-5

Reserves -25

Long Term Debt -20

Creditors -10

Bills Payable -7

Accrued Expenses -5

Provision for Tax -3

Total Liabilities-125

Assets -Rs (in L)

Land & Building -10

Plant & Machinery - 50

Less:Depreciation - 10

Net Palnt & Machinery -40

Investments -20

Stock -20

Marketable Securities -10

Prepaid Expenses -5

Debtors -15

Cash -5

Total Assets -125

a. Calculate the current ratio, quick ratio and debt equity ratio.

b. The company reported earnings after taxes of Rs. 2 crores. Assuming PE ratio of 10, calculate the theoretical stock prices of ABC Ltd.

Reference no: EM132642043

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