Khanzada Owais Qarni-1850116

Q1)

a) The significant contrast between straightforward interest and self multiplying dividends is that
basic interest depends on chief sum though progressive accrual depends on the chief sum and
the premium accumulated for a pattern of the time frame.
b) 10% compound interest?

100x10%= 10
10 + 100 =110

110X10%=11
11+110= 121

121X10%= 12.1
12.1+121= 133.1

133.1x10%=13.31
13.31+133.1=146.41

146.41X10%=14.64
14.64+146.41=161.05

10% simple interest?

100X10%= 10

10X 5= 50

50+100 = 150

Q2)

S. No Description of the transaction Total Current Assets Current Ratio

1 Inventories are sold for cash. 0 0

2 Income Tax paid to the Government - -

Khanzada Owais Qarni-1850116

3 A fixed Asset is sold for less than book value + +

4 Payment is made to trade creditors for previous purchases. - 0

5 Payment is made to trade creditors for previous purchases - 0

6 A cash dividend is declared and paid - -

7 Accounts receivable are collected in cash 0 0

Q3)

a) 12%

b) 0.5 = {60 + [(1,000 - m)/50]} / [(1,000 + m)/2]

25 + 0.025m = 60 + 20 - 0.02m

0.045m = 55

m = 55/0.045 = $1,222.22

c) current yield = coupon / market price = $120 / $1,222.22 = 9.82%

capital gains yield = (P₁ - P₀)/P₀ = ($1,222.22 - $1,000)/$1,000 = 22.22%

Q5)

a) Beta is a numeric worth that gauges the variances of a stock to changes in the general financial
exchange.
b) Ici stock is less risky However psx is high trade market

Q6)

a) False
b) True
c) True
d) False

Q7)

A) For the purpose of the imposition of tax all income shall be classified as namely
Khanzada Owais Qarni-1850116

1) Salary
2) Income from propery
3) Income from business
4) Capital Gains
5) Income from other sources

B)Resident company (Section 83)

1) It is incorporated or formed by or under any law in force in Pakistan

2)The control and management of the affairs of the company is situated wholly in Pakistan at any time
in the year

3) It is Provisional government or local government in Pakistan