Calculate business and financial risk of firm

Assignment Help Financial Accounting
Reference no: EM132569711

Khalique enterprise is a renown organization with almost one million shares outstanding. The company performed very well till last year, but this year; due to management shifts, investors are losing their interest in organization. Currently company's common stock (C.S) is priced at Rs. 10/share and preferred stock (P.S) is priced at Rs. 7.5/ share, which were originally issued at Rs. 7.5 and Rs. 4 per share respectively. C.S to P.S ratio is 40% and debt to capital ratio is 65%. Currently company has earned net profit of 1.3 millions after paying 30% of operating profit in taxes and Rs. 915,307 as interest payment. If company's payout ratio is 60% (i.e. 60% of firms net profit will be paid as dividend to share holders)

Problem 1: Calculate Business and Financial risk of firm.

Problem 2: Find EPS and DPS of firm

Reference no: EM132569711

Questions Cloud

What is the sample and sample attributes : This week, you will submit summaries of quantitative and qualitative studies. The purpose of this assignment is to become familiar with published research.
What should be optimal capital structure of firm : How inclusion of new project; at optimal capital structure, will effect overall position of firm. What should be optimal capital structure of firm?
How much gain will the Pratts recognize on their home sale : Assume that the Pratts sold their home and moved because they didn't like their neighbors. How much gain will the Pratts recognize on their home sale
What are your current risks for infectious disease : What are your current risks for infectious disease? What health risks do you have that are the result of your lifestyle?
Calculate business and financial risk of firm : Calculate Business and Financial risk of firm. Khalique enterprise is a renown organization with almost one million shares outstanding.
What makes braving connection with amped2play : From a LOGISTICS (place) perspective. what are 5 critical things to understand about Amped2Play and the Braving Connection Course
What did your peer see in the ad that you did not see : The scene that impacted me the most was the ending scene when the narrator said "we helped build this country, and we were welcome." (IHM, 2014).
How much money will be in the fund two years : If you make 30 semiannual deposits of $2000 into a fund that earns 10% compounded quarterly, how much money will be in the fund two years
Demonstrate how much should be willing to pay for the bond : If you require an "effective" annual interest rate (not a nominal rate) of 8 16%, how much should you be willing to pay for the bond?

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd