Sample Question

1. A ltd purchased 1000 shares of 5 issued at 50. Mr. X purchased 50 shares. He purchased the shares at the market price of 80. During the year the company declared dividend of 400%. Price of the shares increased to 120 by the end of the year. Find the Return on Investment of Mr.X.

a. 75%

2. The financial items of A ltd as on 1^st April 2009: Capital (10) =100,000; Reserves =400,000; Creditors = 200,000. Company declares cash dividend of 75%. Find the book value per share.

a. 42.5

3. Microsoft Corporation had the following assets and sources as on 30^th June 2007: Current Assets = $ 40,168 mn; Total Assets = $ 63,171 mn; Outsiders money = $ 32,074; Share Capital = $ 70,557 mn. Find the networth of Microsoft Corporation.
1. Positive $ 31,097 mn

4. The financial items of A ltd as on 1^st April 2009: Capital (10) =100,000; Reserves =400,000; Creditors = 200,000. Find the BV per share if the company declares 100% dividend as stock dividend.

a. 25

5. Assets of Altd = 80,000; Financed by Debt 50% and Equity (net-worth) 50%. 10% of the equity is Capital. Face value shares is Rs. 10. Company issued bonus shares in the ratio of 4 to 1 (4 bonus shares for every1 share). Find book value per share after the bonus issue.

1. 20

6. Price to BV per share Ratio =5; Capital =10000 shares of 5 issued at 20,; Other liabilities = 100,000; Total Assets = 500,000. Find price per share.

a. 200

Second Set

1. A ltd issued 10,000 shares of 2 at 100. Raised 8% loan of 500,000. Used the entire money available for acquiring share of X ltd. Sold 50% of the shares at premium of 20%. Find Book value per share at the end of the year. Assume that there is no tax.

a. 111

2. Price to BV per share Ratio =10; Capital =10000 shares of 5 issued at 20,; Other liabilities = 100,000; Total Assets = 500,000. Find price per share.

a. 400

3. Book Value per share = Rs. 5; No of shares = 10,000; Capital = 100,000. Find Accumulated Profit.

2. Negative 50,000

4. Capital = 50,000; Cash =35,000; Total sources = 100,000; Current Liabilities =50,000; Total Sources = 100,000; Long term liabilities = 80,000. Find networth.

c. negative 30000

5. Microsoft Corporation had the following assets and sources as on 30th June 2007: Current Assets = $ 40,168 mn; Total Assets = $ 63,171 mn; Outsiders money = $ 32,074; Share Capital = $ 70,557 mn. Find the networth of Microsoft Corporation.

4. Positive $ 31,097 mn

6. Capital =125000; Loans = 75000; Assets = 75000; Find the Accumulated Profits.

5. Negative 125,000