Question 1

Rafhan Limited
Sales 4,500,000.00
Net profits after taxes 237,740.00
Total Assets 6,750,000.00
Total Liabilities 2,377,400.00

Industry Averages Rafhan

Total asset turnover 0.71 0.67
Debt ratio 0.33 0.35
Financial leverage multiplier 1.50 2.84
Return on total assets 0.07 0.04
Return on equity 0.10 0.10
Net profit margin 0.10 0.05

Question 2

While analyzing the financial reports of Company X, your manager realized that he was missing the figure
of Net Profits after taxes. Using the figures below, calculate the Net profit after tax.

ROA 2%
Total Asset Turnover 0.50
COGS 105,000.00
GP margin 0.30

Sales = COGS/(1-GP Margin) 150,000.00

Total Assets = Sales/Total asset turnover 300,000.00
Net Profit = ROA*Total Assets 6,000.00

Question 3
NETSOL Contract 9.00 Years
Monthly Salary (End) 70,000.00
Saving 50% 35,000.00
MCB Interest rate (Daily Compounding) 10%
Beginning of Year (Insurance) starting from Year 5 45,000.00 4
Discounting for insurance premium 11% per annum

EAR for Daily Compounding 10.52%

FV of MCB Saving Account $6,254,015.01
FV of Insurance Premium $235,251.06
TOTAL $6,489,266.08

CREATIVES inc. 7.00 Years

Salary End of month 120,000.00
Saving 60% 72,000.00
Semi Annual Deposits 9% p.a (Semi Annual)

Semi-aanual deposits 432,000.00

FV of Deposits $8,178,671.25 BETTER OPTION

Question 4
Accumulate by the end of 124,000.00 4
Current balance 25,000.00
Annual Fund raising events (CF) ?
Interest rate 12% Annual

FV of 25000 39,337.98
Balance to be raised from Annual events 84,662.02
Annual fund Raising CF 17,714.21

Question 5
GOLD SILVER
Return (%) Probability Return (%)
8 0.1 10
9 0.2 18
12 0.3 12
12 0.4

Return 11%
Standard Deviation 1.55%
Coefficient of Variariation 14%
GOLD is a better asset because of lower CV

Question 6
Time to Maturity 5.00
Par value 1,000.00
Coupon 12% Semi-annual
Interest rate 14%
VALUE OF BOND TODAY ($929.76)

Calculate YTM is bond was issued 20 Years ago at 857.50 14.07%

SOLVED through Financial calulator N=50

Question 7
Bisma borrows $10000 from a bank at 8% annually compounded interest to be repaid in 5 annual installments.
Prepare a loan amortization table and calculate the principle paid back in the third year.

Installment Interest Principle

$2,504.56 800.00 $1,704.56

$2,504.56 663.63 $1,840.93
$2,504.56 516.36 $1,988.20
$2,504.56 357.30 $2,147.26
$2,504.56 185.52 $2,319.04
 GOLD
SILVER R Prob (R-Ṝ)^2 (R-Ṝ)*p
Probability 8% 0.1 0.09% 0.009%
0.25 9% 0.2 0.04% 0.008%
0.35 12% 0.3 0.01% 0.003%
0.4 12% 0.4 0.01% 0.004%

SILVER
13.60% 10% 0.25 0.13% 0.03%
3.32% 18% 0.35 0.19% 0.07%
24% 12% 0.4 0.03% 0.01%
use of lower CV
n 5 annual installments.
e third year.

Loan
10000
$8,295.44
$6,454.51
$4,466.30
$2,319.04
$0.00