Fundamentals of Financial Management, Third Edition

NUMERICAL PROBLEMS

1. Find out ROI, if profit amounts to Rs 20,000, sales amounts to Rs 1,00,000 and assets amount to Rs 50,000.
2. On the basis of the following figures:

   Revenue = Rs 1,00,000

   Variable cost = Rs 60,000

   Fixed operating cost = Rs 10,000

   Fixed financing cost = Rs 5,000

   Compute:

   1. DOL
   2. DFCL
   3. DCL
3. Compute DOL if total output is 5,000 units, sale price per unit is Rs 100, variable cost per unit is Rs 70 and total fixed cost is Rs 1,00,000. What will be the change if output increases by 10% ?
4. If marginal contribution is Rs 60,000, fixed operating cost is Rs 20,000 and interest payment is Rs 10,000, find out DFCL. Will DFCL change if marginal contribution moves up to Rs 80,000 ?
5. If a Rs 100 preference share carries 7% dividend rate, the tax ...