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

A-b trust, It is a trust developed by a married couple with the purpose of ...

It is a trust developed by a married couple with the purpose of minimizing estate taxes. An A-B trust is a trust that splits into two on the death of the first spouse. It is produc

Cash flow duration, Cash flow duration, like effective duration, cons...

Cash flow duration, like effective duration, considers the change in the cash flow due to prepayment with the change in the interest rate. In effective duration,

Capital asset pricing model, Cascade Water Company (CWC) currently has 30 0...

Cascade Water Company (CWC) currently has 30 000 shares of common stock outstanding, trading at a price of R42 per share. CWC also has 500 000 bonds outstanding that are currently

Calculate the interest rate on the investment, Jessica is given the opportu...

Jessica is given the opportunity to invest $5,000 now and receive $5,700 at the end of one year. However, she could only invest $1,000 of her own money and would need to borrow the

Write out the equation or draw the budget line, You have $21 to spend on pr...

You have $21 to spend on prawns and potatoes. Prawns cost $20 per kilo and potatoes cost $2 per kilo. (a) Supposing you can buy as much or as little as you want of prawns and

Explain conversion and competitive effects of exchange rate, Define the con...

Define the conversion and competitive effects of exchange rate changes on the company's operating cash flow. Answer: The competitive effect: Exchange rate modifications may in

the use of a preauthorized check system, In general, what type of firm wou...

In general, what type of firm would benefit from the use of a preauthorized check system and what specific types of companies have successfully used this device to accelerate cash

BUS 430 Finance Seminar, Image Storage Corporation has 1,000,000 shares out...

Image Storage Corporation has 1,000,000 shares outstanding. It wishes to issue 500,000 new shares using a (North American) rights issue. If the current stock price is $50 and the s

Determine the management buy-outs, Determine the Management buy-outs ...

Determine the Management buy-outs Management buy-outs (MBOs) The management of company buy out the shareholders. Management will usually require financial backers (ventu

Working capital management, Q. Working capital management? Every busine...

Q. Working capital management? Every business needs funds for the two purposes for its establishments and to carry out day to day operations. Long terms funds are required to c

Write Your Message!

Name

Email id

Message

Verfication Code

User Account

All Pages