Re: [discussion_vu] need FIN 630 Solution plsssssssssssss

ok i send u but i am also not confirm plz check it.

i) ROA = Net income Margin x Turnover
Net income margin = Net Income / sale or COGS x 100
Turnover = Sale or COGS / Total Asset

 

ROA=Net Income/Total Assts =500,000/80, 00,000 =0.0625
ROA = 0.0625 or 6.25%

 

ii) ROE=Net income/Shareholder Equity =500,000/10, 00,000= 0.5

ROE = 0.5 or 50%

ROE = ROA / Leverage
Leverage = Total Assets / Share Holder Equity

iii) EPS=Net Income/Common Stock =500,000/100,000= 5

EPS = Rs.5 /share

EPS = Profit available for share holder / Average common shares
outstanding

 

Part 2
Value of bond A= Rs. 787.05
value of bond B= Rs. 344.42
iii) EPS=Net Income/Common Stock =500,000/100,000= 5

EPS = Rs.5 /share

EPS = Profit available for share holder / Average common shares
outstanding

Bond Valuation: 
The price of a bond should equal the present value of its expected cash flows. The coupons 
and the principal repayment of $1,000 are known, and the present value, or price, can be 
determined by discounting these future payments from the issuer at an appropriate required 
yield, r, for the issue. To solve for the value of an option-free coupon bond. 
n 
P = Σ ct / (1 + r)t + FV / (1 + r) n 
i = 1 

iii) EPS=Net Income/Common Stock =500,000/100,000= 5

EPS = Rs.5 /share

EPS = Profit available for share holder / Average common shares
outstanding

Where; 
P = the present Value or price of the bond today (time period 0) 
c = the semiannual coupons or interest payments 
FV = the face value (or par value) of the bond 
n = the number of semiannual periods until the bond matures 
r = the appropriate semiannual discount rate or market yield

 

ROE = 0.5 or 50% 
EPS = Rs.5 /share 

value of bond A= Rs. 787.05 
value of bond B= Rs. 344.42

On Thu, Jan 6, 2011 at 9:14 AM, mc070400183 NIGAH NIZAR <mc070400183@vu.edu.pk> wrote:

thanksssssssssssssssss dear

On Thu, Jan 6, 2011 at 8:20 AM, M.M.M KING <mc080401260@vu.edu.pk> wrote:

solution attachad

Mian Mudassar Maqsood

+923224006469

On Thu, Jan 6, 2011 at 8:13 AM, mc070400183 NIGAH NIZAR <mc070400183@vu.edu.pk> wrote:

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With best Regds

*Nigah-e-Nazar Fatimi*
    0092-332-2332082
    0092-305-2290080

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    0092-332-2332082
    0092-305-2290080

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