Professional Documents
Culture Documents
FM II Assignement
FM II Assignement
FM II Assignement
DISTANCE
EDUCATION
DIVISION
TEL. 011-8-12-19-82
ASSIGNMENT
ON
Financial Management II
Date: - _____________
Total Weight: - 30 %
Program: DEGREE
EThis is the only assignment of this course.
EThis assignment is to be completed and submitted to the office of your center. Do not
attempt the assignment until you are certain that you have understood the units it covers
and have revised your self-test exercises and learning activities, and other necessary
references.
EIf you have any question about the units and activities, state the item/s clearly on a
separate sheet of paper and attach to your assignment paper .
Part I.Work Out (show the necessary steps)
1. A firm’s sales are Birr 450,000 Cost of good sold is Birr 240,000 and inventory is Birr
90,000
A. Calculate its inventory turn over
B. Calculate the firm’s gross margin percentage
2. A bond has Birr 10,000 face value and 10 years to maturity. The bond promises to pay a
coupon of 1,000Br. The bond interest is paid annually. The interest rate for similar bonds is
12%.
Required: Determine the following:
A. What is the bond’s terminal value
B. Determine the coupon rate
C. What is the maturity period
D. What is the yield to maturity
E. Determine the value of the bond
Using the above information, calculate the following ratios and decide whether they are acceptable
or not acceptable by comparing the results with the given industry average.