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    14 views12 pages

    Ratio Analysis Questions

    Uploaded by

    Sanskar Pankaj
    .

    Copyright:

    © All Rights Reserved
    Download as PDF or read online from Scribd
    Flag for inappropriate content
    of 12
    = ‘Fundamental Analysis 6.3 PRACTICAL PROBLEMS| 1, The following information about 'S' Ltd, is supplied fo 90 ended 31st March, 2005: Share Capital: u for the year 10% of Preference Shares of ¥ 20 each % 6,00,000 Equity Shares of ¥ 10 each % 16,00,000 ~¥22,00,000_ Profit after Tax & 5,40,000 Depreciation %1,20,000 Equity Dividend Paid 20% 80 Market Price of Equity Share You are required to compute the following: (i) Dividend’Yield Ratio (ii) Eaming per Share (iii) Price Earning Ratio. z The Pricing ‘Earning Ratio of Market Index is 15 times; would you advise your client to invest in this share? 2. Following information is available relating to High Ltd. and Low Lid, (®. in lakhs) Particulars High Ltd. | Low Ltd. | Equity Share Capital (€ 10 face value) 200 250 12% Preference shares 80 100 Profit after tax 50 70 Proposed Dividend 35 40 Market Price per share 100 [ 140 Calculate: (i) Eaming per share (ii) P/E Ratio (iii) Dividend Payout Ratio (iv) Return on Equity Shares 3. Following information is available relating to Beena Ltd. and Meena Ltd: (All Rs. in Lakhs) Beena Ltd. Meena Ltd. Equity share capital (® 10) 200 250 12% preference shares 80 100 Profit after tax 50 70 Proposed dividend 35 40 Market price per share %25 235 You. are required to calculate: (i) Earning per share, (ii) P/E Ratio (iii) Dividend Payout Ratio, (iv) Return on Equity Shares. As an analyst, advice the investor which ofthe two companies is worth investing. ae fundamental Analysis its financial 1, Mis. Green and Blue Lid. has presented 2006 as follows: 3 ( Balance Sheet on 31st March, 2006. » Liabilities Amount % Assets Share Capital 12,00,000) Fixed Assets z & Reserve and Surplus 8,00,000] Stock in Hand Long Term Debt 22,70,000|S. Debtors Current Liabilities 23,50,000] Cash and Bank Balance Total 66,20,000] Total Net Profit Income Statement for the ended 31st March, 2006 3 Amount % Net Sales 1,02,00,000 Cost of Goods Sold Selling and Administrative Expenses 79,20,000 2) Company has declared dividend @ 25% 8) Market Price of the share is 50 You are tequired to evaluate investment in Com Dividend Yield. pany on the basis of; | | { 1 5. Following ir vallable relating to A 14d, and VAN, A Ltd, BAA, (Zin Lakhs) | (Zin Laldia) Equity Share Capital (2 10) 200 250 10% Preference Share Capital “aw 100 15% Debentures 20 OO Profit before Interest and Taxes 60 6) : Proposed Dividend 20 2 Provision for tax V7 21 pene! Price per share g 50. x 60 | to calculate (i) 8 PS, ti) PIE. Ratio, (i) Dividend Payout and advise which company's share Is worth investing, On the asia ui er seems ~ Veena Ltd. has presented its financial infor 6. March 2007. Earnings before interest and taxes & 8,00,000 1,00,000 Equity shares of = 10 each = 10,00,000 10% Debentures & 15,00,000 Reserve and surplus (before adjustments) %5,00,000 Provision for taxation 30% Proposed Dividend 20% Market price per share 532 Calculate (i) EPS (ii) P/E Ratio (iii) Book Value per share and (iv) D ether investment in Veena Ltd. is advisable. Yield and state wh rmation for the year ended 31st ividend s and briefly comment on each one of them: iil) Preference and equity cover. (iv) P/E ratio. z 30,00,000 10,00,000 10,00,000 -8,00,000 8. Triveni Industries Ltd. gives you the following information for the year ended 31st March 2008: Profit before interest and taxes = 16,50,000 Tax Rate 30% Proposed Equity Dividend 25% Capital Employed 10% Preference Share Capital %15,00,000 80,000 Equity Shares of Rs. 10 each %. 8,00,000 15% Debentures of Rs. 100 each %7,00,000 Reserve and Surplus % 12,00,000 Current Market Price per Equity Share 50 __ You are required to calculate: (ii) Price Earning Ratio. (iv) . Dividend Yield. 11. Following information is available relating to HA Limited and AH Limited: Particulars HA Limited AH Limited Equity Share Capital (7.10 face value) % 200 lakhs & 250 lakhs 12% Preference Shares % 80 lakhs % 100 lakhs Profit after Tax = 50 lakhs % 70 lakhs Proposed Dividend & 35 lakhs % 40 lakhs Market Price Per Share = 200 = 280 Calculate: (1) Earning per share. (2) P/E Ratio. (3) Dividend Pay-out Ratio. (4) Return on Equity Shares, are worth As an analyst inform the investor which of the two companies investing. : i i be 46. The Balance Sheet of two ¢ Companies are given low: B Ltd. Ltd. Leck | in Lait a Share Capital 10 - 12% Debentures 5 5 Reserves and Surplus 9 a Creditors 6 a Total Liability 30 Machinery 15 20 Debtors 3 7 Stock 10 16 Cash & Bank 2 : Total Assets 30 40 Sales ~ : 60 7 Cost of Goods'Sold = 40 55 Other Operating Expenses ; 5 : Interest Expenses 0.5 1 Income Tax 0.5 1 Deion aaNet 1 3 tions by making a comparison of ratios: Answer each of the following ques! (i) Which company is using shareholder's money more profitably? fi) Which company is better able to meet its current debt? (iii) Which company collects its receivables faster assuming all sales are on credit basis? iv) Which company retains the larger proportion of income in the business? ( (v) If you want to buy the shares of one company which company's share would you buy? ven below: 16. The Balance Shee! of to Compare given Pele aa. a ci ee ‘Share Capital 10 5 12% Debentures 5 : Reserves and Surplus 9 . Creditors 6 10 ‘Total Liability 30 Machinery 75 i Debtors 3 : Stock 10 “0 Cash & Bank a A Total Assets 30 “a * 60 30 Cost of Goods Sold a 40 fe Other Operating Expenses ‘ : a ceed

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