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

Margin trading, Margin Trading: Suppose an investor wants to buy 100 Re...

Margin Trading: Suppose an investor wants to buy 100 Reliance Energy shares, whose market price is Rs.500. This transaction requires Rs.50,000 but the investor has only Rs.30,0

Preemptive right protect the interests of existing stockhold, How does a pr...

How does a preemptive right protect the interests of existing stockholders? A preventive right protects the interests of existing stockholders by giving them the opportunity to

Explain the term- administration of decisions, Explain the term- administra...

Explain the term- administration of decisions Conformance, compliance and efficiency This is focussed on the "administration of decisions" . Processes and procedures m

S&p cnx 500, S&P CNX 500 Here, the stocks are included as per their res...

S&P CNX 500 Here, the stocks are included as per their respective market capitalization. It includes companies which lead in their respective industry sector. They should close

Cost control strategy , questioner based on this topic

questioner based on this topic

Budgeting, Budgeting: All business owners should recognise and understa...

Budgeting: All business owners should recognise and understand the importance of preparing and maintaining a financial budget for their business. Budgets are an essential fi

Determine the movements in working capital, Movements in working capital ...

Movements in working capital The year-end balances of trade, inventories and other receivables and payables are taken for current year-end as well as last year-end statement

Credit standards for formulation of optimum credit policy, Q. Credit Standa...

Q. Credit Standards for Formulation of Optimum Credit Policy? Credit Standards: - Credit standards are the essential criteria set for extension of credit to customers. Decision

Important features floating rate notes, Reference Index Every FRN choos...

Reference Index Every FRN chooses its own reference index upon which the calculation of each successive new coupon is based. The most commonly used reference index is LIBOR. It

Cash flow of reverse convertibles, (a) Let's presume that the firm may defa...

(a) Let's presume that the firm may default only on last coupon payment date and that when this take place stock price would be less than some predetermined price K at the expira

Write Your Message!

Name

Email id

Message

Verfication Code

User Account

All Pages