Description

Share price of M/s Antara Limited at the beginning of the year was Rs. 50 and end of the year was Rs. 55 per share. Dividend declared was Rs. 5. Beta of the Company was pegged at 0.6. M/s Antara had floated its Debentures at 8% fixed interest for 5 years. The bank had extended a loan on  floating rate  basis.  Interest paid during the  year  was Rs. 10000. Government securities are earning a return of 4% currently.

2. Calculate the Gross and the Net Operating Cycle for Vishal & Co. Ltd. using thefollowing information. (Assume 360 days in a year). (10 marks)

3) a) What should be the amount to be invested:

1. i) To receive Rs. 2,00,000 per annum in perpetuity at an interest rate of 8%.

1. ii) In addition to conditions of point (i) above, if a growth rate of 3% is expected everyyear.

To receive Rs. 4,00,000 per annum in perpetuity at an interest rate of 5%.   (5 marks)

3b)  Calculate the current ratio and Acid Test Ratio with the following information  (5 marks)