Calculate debt or equity ratio, Financial Management

Assignment Help:

Calculate Debt or Equity Ratio

XYZ LIMITED

Key data related to XYZ for last three years is as follows:

	2011/12	2010/12
Authorised capital	Rs. 1,000,000,000	Rs. 1,000,000,000
Issued, subscribed and paid up capital	Rs. 750,000,000	Rs. 500,000,000
Par value	Rs. 10/- per share	Rs. 10/- per share
Market value	Rs. 55/= per share	Rs. 32/= per share
Sales	Rs. 1,600,000,000	Rs 850,000,000
Net profit before interest and taxes	Rs. 450,000,000	Rs. 325,000,000
Total debt - Int. rate 12%	Rs. 600,000,000	Rs. 150,000,000
Tax rate	30%	30%
Dividend declared	30%	25%

Calculate the following information for both 2011 and 2010:

1. Net profit after tax

2. Book value per share

3. Dividend payout ratio

4. Dividend yield

5. Dividend per share

6. Earnings per share

7. Debt/equity ratio

8. Return on equity

Related Discussions:- Calculate debt or equity ratio

Scope of finance functions, SCOPE OF FINANCE FUNCTIONS The functions of...

SCOPE OF FINANCE FUNCTIONS The functions of Financial Manager can generally be sub-divided into two: The Routine functions and the Managerial Functions. Managerial Finance F

Calculate average annual return, Q. Calculate Average Annual Return? An...

Q. Calculate Average Annual Return? An investor buys a bond in 1978 maturity in 1980 at Rs.900. It has a maturity value of 10 years and par value of Rs. 1000. It fetches RS.90

Illustrate earning yield method, Q. Illustrate Earning Yield Method? Ea...

Q. Illustrate Earning Yield Method? Earning Yield Method: - As per this method, cost of equity capital is calculated by establishing a relationship between earning per share an

Find out weighted average cost of capital, The Beta Corporation has an opti...

The Beta Corporation has an optimal debt ratio of 40%. Its cost of equity capital is 12% and its before-tax borrowing rate is 8%. Given a marginal tax rate of 35%, calculate (

What is online futures trading, Question 1: (a) Briefly explain the Ele...

Question 1: (a) Briefly explain the Electronic Data Interchange (EDI), and list the benefits of EDI. (b) List and describe the main components of MACSS. (c) Explain brief

Is there an optimal capital structure, Is there an optimal capital structur...

Is there an optimal capital structure? What is it and how can it be calculated? There is no optimal capital structure. Capital structure is a variable which depends on the incl

Senior versus subordinate bonds, This is again a distinction which be...

This is again a distinction which becomes important in case of a default. The senior bondholders have to be paid before the subordinate bondholders. This means th

Strong form level of efficiency, Strong form level of Efficiency This l...

Strong form level of Efficiency This level states that price reflects all the available public and private information (past, present and future information). If the hypothesis

Strategic management, Develop and implement strategic plan using bounce fit...

Develop and implement strategic plan using bounce fitness as case study

Enumerate the internal development of any business, Enumerate the Internal ...

Enumerate the Internal development of any business or 'organic growth' Business grows using its own internal resources. - Reduces risk of the high cost of integrating cultur

Write Your Message!

Name

Email id

Message

Verfication Code

User Account

All Pages