Any body can help me in its solution till the next night 10:00 pm
"Investment Analysis & Portfolio Management" (Fin 630)
Assignment No.02 Marks: 20
In order to analyze the performance of ABC Company, following information has been
extracted from its financial statements.
Particular Rs. (000)
Net profit after tax 500
Total assets 8000
Common stock 1000
100,000@ Rs. 10
Retained earning 90
Current liabilities 25
Account receivables 50
Cost of goods sold 1800
Long term debt
Bond A 300
300@ Rs.1000
Bond B 200
200@ Rs.1000
1. You are required to calculate the following ratios:
• ROA (Return on assets)
• ROE (Return on Equity)
• EPS (Earning per share)
2. Calculate the value of bond A using 15% coupon with 20-year maturity, paying 40
semiannual payments of Rs. 75 each, assuming required rate of return of 10%
3. Calculate the value of bond B using 11% coupon with 10-year maturity, paying 40
quarterly payments of Rs. 27.5 each, assuming required rate of return of 16%
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