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Part-A Answer To The Question No.1: 1.quick Ratio 1.21 Times
Part-A Answer To The Question No.1: 1.quick Ratio 1.21 Times
ANS:
𝑪𝑨−𝑰𝒏𝒗𝒆𝒏𝒕𝒐𝒓𝒚
1.Quick Ratio = 𝑪𝑳
𝟐𝟎𝟎𝟎−𝟕𝟓𝟎
= 𝟏𝟎𝟑𝟎
= 1.21 times.
𝐒𝐚𝐥𝐞
2. Fixed assets turnover = 𝐅𝐢𝐱𝐞𝐝 𝐚𝐬𝐬𝐞𝐭𝐬
𝟏𝟕𝟎𝟎
= 𝟏𝟒𝟓𝟎
= 1.172
𝐀𝐜𝐜𝐨𝐮𝐧𝐭 𝐫𝐞𝐜𝐞𝐢𝐯𝐚𝐛𝐥𝐞𝐬
3. DSO = 𝐀𝐯𝐠.𝐒𝐚𝐥𝐞𝐬 𝐩𝐞𝐫𝐝𝐚𝐲
𝟒𝟎𝟎
= 𝟒.𝟔𝟓𝟕𝟓
= 85.88
= 86 days
𝐄𝐁𝐓𝐈
4. OMP = 𝐒𝐚𝐥𝐞𝐬 x 100
𝟑𝟕𝟎
= x 100
𝟏𝟕𝟎𝟎
= 21.76 %
Answer to the Question No.1
B. Differentiate between direct and indirect transfer of fund with diagram and
examples considering Bangladeshi financial markets and institutions.
ANS:
Differentiate between direct and indirect transfer of fund are given below :
Direct Transfer Indirect Transfer
The first wat is through direct transfer The second way is indirect transfer though
investment bankers.
It refers to transfer of assets from one type Investment bank refer to a financial
of tax-deferred retirement plan on institution that help individual and
account to borrower corporation to raising their capital by
underwriting.
Direct are not transfer are not considered The also act as the clients agent when
to be distributions and not taxable as issuance of securities such as stock and
income on subject to any penalties for bond.
early distribution.
Firm’s Funds
Firm Securities
Securities Fund
Funds securities
(dollars of savings)
(stocks, Marketable
bond
Securities
Marketable
Securities
Savers(savings surplus Securities Funds
unit)
Savers
(Savings Intermediary’s
funds
surplus units) securities
Savers(Savings
surplus units)
Answer to the Question No.2
A. Differentiate between spot versus future market, corporate charter versus bylaws with
examples.
ANS:
ANS:
For example, if you have a job for which you XYZ Co. feels that the current capacity of
get paid by the hour, your hourly wage is manufacturing buses is limited, and there is a lot
considered ordinary income. of scope in the market for increasing revenue.
Keeping this in mind, the management has
approved to go ahead with investing in a new
plant for increasing production capacity. It is a
non-recurring transaction; however, the same can
be taken an increase in capital assets rather than
classifying it as an extraordinary loss.
C. To supplement your planned retirement in exactly 42 years, you estimate that you need
to accumulate $220,000 by the end of 42 years from today. You plan to make equal, annual,
end-of-year deposits into an account paying 8% annual interest.
I. How large must the annual deposits be to create the $220,000 fund by the end of 42
years?
II. If you can afford to deposit only $600 per year into the account, how much will you
have accumulated by the end of the forty-second year?
ANS:
( 1+0.08)42 −1
PMT=FV A42 ÷( )
0.08
220000
PMT =
304.244
PMT = $ 723.10
A. Mr. Mamun borrowed Tk. 115,000 at a 12.5% annual rate of interest to be repaid over 5 years.
The loan is amortized into five equal end-of-year payments. The loan has processing fee of 1.25%
and early settlement fee is 2.75%.
Requirements:
I. Calculate the annual end-of-year loan payment.
II. Prepare a loan amortization schedule showing the interest and principal breakdown of each
of the five loan payments.
III. Explain why interest decreased gradually in this process?
IV. If the borrower wants to go for loan settlement at the end of year 3, what will be trade-off?
ANS:
1. Loan amortization
(1.165)5
115000= PTM (1-1÷ )
0.165
= 2.82
PTM = 115000 ÷2.82
= $ 40780.14
B. Define agency problem? Explain different mechanisms to minimize the agency problem of a
business enterprise in Bangladesh, label some high cases from Bangladesh.
ANS: