Financial markets can be broadly categorized into two main types: the Money Market and the Capital Market. These markets serve distinct purposes and involve different types of financial instruments. 1. Money Market: The money market deals with short-term debt securities and financial instruments that have high liquidity and typically mature in one year or less. …
Develop a Public Relations campaign for IRDA to help create awareness about the Life Insurance sector and to educate policyholders about their rights. Title: Empowering Lives: The IRDA Life Insurance Awareness Campaign Objective: The primary objective of this Public Relations campaign is to generate awareness about the Life Insurance sector and educate policyholders about their …
Cost (Rs.) Anticipated Cash flow after tax per year (Rs.) Yr. 1 Yr. 2 Yr. 3 Yr. 4 Yr. 5 Machine M 6,25,000 – 1,25,000 5,00,000 3,50,000 1,50,000 Machine N 10,00,000 2,50,000 3,50,000 4,00,000 4,25,000 2,00,000 The company’s cost of capital is 16%. You are required to make an appraisal of the two machines …
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Rs. Equity share capital (Rs. 10 each) 3,00,000 Reserve & Surplus 1,50,000 Preference share capital (Rs. 100 each) 2,40,000 Debentures (Rs. 100 each) 1,00,000 All these securities are traded in the capital markets. Recent prices are: debentures @ Rs. 100, Preference shares @ 125 and Equity shares @ Rs. 20 each. You are required to …
BIL PIL MIL Annual production capacity 1,00,000 1,50,000 2,50,000 Capacity Utilization and sales 75% 75% 75% Unit Selling Price (Rs.) 40 50 50 Unit Variable Cost (Rs.) 15 15 20 Fixed Cost p.a. (Rs.) 2,00,000 3,00,000 5,00,000 Equity Capital (Rs.) [1000 shares for each company] 5,00,000 7,00,000 10,00,000 10% Preference Share Capital (Rs.) …
1. (a) Z Ltd. takes a loan of Rs. 3,00,000 from a financial institution at 8% p.a. The loan is to be repaid in five equal annual instalments. Calculate the amount of each instalment. To calculate the amount of each instalment for a loan of Rs. 3,00,000 at 8% per annum, to be repaid in …
Question and Answer 4. (a) Discuss Systematic Risk and Unsystematic Risk. (b) Puja Ltd. furnishes the following information in respect of a material used in its production process: (i) Annual requirement : 16,000 units (ii) Cost of placing an order : Rs. 2,300 (iii) Cost per unit : Rs. 60 (iv) Cost of capital : …
3. From the information given below, prepare a Cash budget of Chatterjee Ltd. for the first quarter ending on 30th June 2021: 16 (a) Sales are both on Credit and Cash. Credit Sales being 3/4th of the Sales. (b) Realisation from Debtors are 25% in the month of sale, 60% in the month following that …
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FIND THE SPREAD IF BID AND ASK RATE FOR RUPEE VS DOLLAR IS 81.983 /81.987 AND AN IMPORTER PURCHASED 48000 USD. SOLUTION: The bid-ask rate for Rs vs Dollar is 81.983/81.987. To calculate the spread, we subtract the bid rate from the ask rate: Spread = Ask Rate – Bid Rate Spread = 81.987 – …
With Major Central Banks globally busy increasing interest rates to counter inflation impacting the emerging markets like India, what are the challenges faced by commercial banks for Treasury Management in view of tight liquidity situation with higher inflation & higher interest rates increasing the cost of funds? In a tight liquidity situation with higher inflation …
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