Prof.Dr.N.Palaniappan.,MBA.,MCom.,MPhil.,PhD. has 15 years of teaching experience in MBA Business schools. For last fifteen years Prof.Dr.N.Palaniappan.,MBA.,MCom.,MPhil.,PhD has taught various subjects from Marketing, Finance, Human Resource Management, Information Systems,
International Business and General Specializations. He has written many research papers and case studies.
Prof.Dr.N.Palaniappan.,MBA.,MCom.,MPhil.,PhD organizes online MBA subject coaching / MBA Assignment help and MBA Project help. Many clients national and international has appreciated Prof.Dr.N.Palaniappan.,MBA., MCom.,MPhil.,PhD for his timely help in the assignments and projects and MBA subject coaching.
You can call him on his mobile no. 09025810064 (whatsapp available) or mail him at palaniappanmail@gmail.com. He does help/guide for the below question. If urgent or any query’s, Please feel free to call him on his mobile no. 9025810064 (whatsapp available) or do mail on palaniappanmail@gmail.com. He does help/guide for the below question
Question
1. Calculate WACC with the following information. Which source of funding is most desirable and why? PQR Ltd. is coming out with a new equity issue of Rs. 10 lacs par value Rs. 100/share. The cost of issuing external equity is around 5%. Shareholders expect a return of 16% p.a. for the risk involved in parking their funds in PQR Ltd. PQR Ltd. also has retained earnings of Rs. 8 lacs as on date. It has a long term debt of Rs. 5 lacs taken at 8% p.a. Tax rate is @ 30% Preference shares capital of par value Rs. 6 lacs (Rs. 100 each), yield a return of 10% p.a. Market value of each equity share is Rs. 105 per share and that of Preference shares is Rs. 125/share.
2. What is a Cash Cycle? Explain. Calculate using the following information. (Assume 360 days in a year).
| Opening Balances | |
| Raw Material | 1,00,000 |
| WIP | 45,000 |
| Finishes Goods | 1,35,000 |
| Debtors | 6,00,000 |
| Creditors | 8,60,000 |
| Closing Balances | |
| Raw Material | 2,00,000 |
| WIP | 65,000 |
| Finishes Goods | 1,25,000 |
| Debtors | 5,45,000 |
| Creditors | 9,75,000 |
| Costs Incurred during the year | |
| Manufacturing Costs | 11,60,000 |
| Excise Duty | 18,80,000 |
| Selling and Distribution Expenses | 6,20,000 |
| Admin. Overheads | 2,00,000 |
| Total Sales | 2,01,96,800 |
| Total Purchases | 1,46,00,000 |
40% of sales are on credit and 70% of purchases are on credit
3. a. What is Net Working Capital? Explain each element briefly. Look at the following Balance sheet extract and identify each element of the working capital and calculate NWC.
3. b. With the following data, calculate DSO and Debtor Turnover Ratio. Explain the importance of each and make inferences.
| FY 2021-22 | FY 2020-21 | |
| Sales | 1,01,000 | 87,255 |
| Receivables | 36,347 | 33,331 |
| 60% of the sales are on credit basis |