[ vuZs.net ] Assignment FIN 630

Please help me last date ha kal urgent please

"Investment Analysis & Portfolio Management (Fin 630)"

Assignment No. 01 Marks: 20

Following information has been extracted from the Balance Sheet and Income Statement of

ABC Company to perform fundamental analysis.

Company ABC has recently paid dividend of Rs. 5 and expected dividend for the next year is

Rs. 5.30. Required rate of return for such type of investment is 12% and company is paying tax

at 35%.

Particulars Rs. (000)

Cash                  200

Current assets  937

Earning before interest and taxes (EBIT) 50,150

Interest expenses 2,550

Sales 105,000

Long term debts 1,700

Common Stock (@100 per share) 2,000

Current liabilities 409

Total assets 6,737

Inventory 212

Preferred dividend 1,230

Question #01. You are required to calculate the following:

• Quick ratio

• Net profit margin

• Interest coverage ratio

• Earning per share

• Intrinsic value of stock

Note: Complete working and formulas are mandatory to be shown in the solution

file.

Question #2. Compare the ABC Company's ratios (calculated in question #01) with the

Industry average and rank its performance accordingly as per table below:

Ratios Industry average Company's ratio Ranking (poor/good or

low/high)

Quick 1.75 Times ? ?

Net profit margin 35% ? ?

Interest coverage 16 Times ? ?

Earning per share Rs. 1.35 ?

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