Reference no: EM132567578
Question 1: The following information is available for Navkar and Co. :EBIT Rs. 20,000; profit before tax Rs. 13,20,000; fixed cost Rs. 7,00,000 .The percentage change in EPS is ________ is the sales are excepted to increases by 5% .
a.)16.02%
b.)24.87%
c.)25.50%
d.)10.25%
Question 2: The cashflows from a project is estimated as follows: year 0=Rs 160 lakh,year 1=Rs 60 lakh, year 2=Rs 80 lakh,year 3=Rs 116 lakh. The benefit cost ratio for the above project is(Assume the cost of capital as 12%)
a.)0.25
b.)0.8
c.)1.25
d.)1.8
Question 3: The net cash flows from a project(with initial investment of Rs 16,20,000) are as follows year1=Rs 2,00,000 , year2=Rs 4,00,000 , year 3=Rs 5,00,000 , year 4=Rs 3,20,000 , year 5=Rs 5,25,000 , year 6=Rs 5,40,000 , year 7=Rs 6,50,000. What is the payback period of the above project?
a.)2years
b.)3years
c.)4years
d.)5years
Question 4: The average daily cost of production is Rs 35 lakh and average conversion period is 3days. The closing stock work in progress is 10% higher than the opening stock of work in progress. The value of closing stock of work in progress is:
a.)100 lakh
b.)110 lakh
c.)120 lakh
d.)130 lakh
Question 5: During the four busiest days in a month od march,the firm cash outflows were Rs 20,000,Rs 30,000,Rs 40,000 and Rs 50,000.The Finance manager desires sufficient cash to cover payments for the 4 days during the peak periods.The safety levels is Rs. ?
a.)1,10,000
b.)1,40,000
c.)1,20,000
d.)1,00,000
Question 6: If the current assets and current liabilities are Rs 2000 lakh and Rs 1200 lakh respectively. How much amount can be borrowed on a short term basis without reducing current ratio above 1.5 ?
a.)Rs.400 lakh
b.)Rs.1000 lakh
c.)Rs. 1200 lakh
d.)Rs. 1400 lakh
Question 7: The following details pertain to anand industries LTD. Average stock of work in progress Rs 16 lakh; Annual cost if production Rs 160 lakh. Assume 360 days in a year. The work in progress period for the company's is:
a.)10 days
b.)16 days
c.)23 days
d.)36 days