Acc501 Assignment No. 1 solution

Virtual University Of Pakistan
ACC501 1 Spring Semester 2011
“Business Finance (ACC501)”

Assignment No. 01 Total Marks: 15

Question # 01
JJ Corporation’s last year Return on Equity (ROE) was only 2.5 percent. Management wants to improve Return on Equity (ROE), for this purpose they has developed a new plan and made following amendments:

For new plan total debt ratio is of 55 percent, it will result in interest expense of Rs. 300,000 per year. Projected EBIT of Rs. 1,000,000 on sales of Rs. 15,000,000 and it expects to have a total assets turnover ratio of 2. Under these conditions, the tax rate will be 30 percent.

Required:
1. What will be the effect of new plan on company’s ROE?
2. Either management should consider new plan or not?
NOTE: Show complete working for this in proper format

Question # 02
A textile company has Rs. 650,000 of debt outstanding and pays interest 65,000 annually on debt. Its annual sales are Rs. 3 million its tax rate is 35percent and its net profit margin on sales is 6 percent. Textile Company has applied for loan from bank. There is a conditionfrom bank for loan sanction, company has to maintain TIE ratio at least 4times, and otherwise bank will reject loan request.

Required:
1. Calculate Time Interest Earned Ratio (TIE).
2. By keeping in view your result, what do you think that bank will sanction loan on the basis of given condition of Time Interest Earned Ratio (TIE)?
 

Important Tips
1. This Assignment can be best attempted from the knowledge acquired after
watching video lecture no. 1 to lecture no 12 and reading handouts as well as
recommended text book).
2. Video lectures can be downloaded for free from Online VU Lectures.

Assignment Schedule
Opening Date and Time 18th April , 2011 At 12:01 A.M. (Mid-Night)
Due Date and Time 21st April , 2011 At 11:59 P.M. (Mid-Night)

Note: Only in the case of Assignment, 24 Hrs extra / grace period after the above mentioned due date is usually available to overcome uploading difficulties which may be faced by the students on last date. This extra time should only be used to meet the emergencies and above mentioned due dates should always be treated as final to avoid any inconvenience.

Important Instructions:
Please read the following instructions carefully before attempting the assignment solution.

Deadline:
• Make sure that you upload the solution file before the due date. No assignment will be accepted through e-mail once the solution has been uploaded by the instructor.

Formatting guidelines:
• Use the font style “Times New Roman” and font size “12”.
• It is advised t compose your document in MS-Word 2003.
• Use black and blue font colors only.

Solution guidelines:
• For acquiring the relevant knowledge don’t rely only on handouts but watch the video lectures and use other reference books also.

Rules for Marking
Please note that your assignment will not be graded or graded as Zero (0) if:
• It has been submitted after due date
• The file you uploaded does not open or is corrupt
• It is in any format other than .doc (MS. Word)
• It is cheated or copied from other students, internet, books, journals etc…
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Solution:


Calculating the ROE using Du Pont model:
From Debt ratio:
Debt ratio = 0.55
Therefore, the company has $0.55 in debt for every $1 in assets. Therefore, there is $0.45 in equity (1-$0.55) for every $0.55 in debt.
Debt-equity ratio = Total debt / Total equity
= $0.55 / $0.45
= 1.2
Equity multiplier = 1 + Debt-equtiy ratio
= 1 + 1.2
= 2.2
ROE = (Net income / Sales ) * (Sales / Assets) * (Assets / Total equity)
= Profit margin * Total asset turnover ratio * Equity multiplier

But Net income is calculated as:
EBIT $1,000,000
(-) Interest $300,000
-----------------------------------
EBT $700,000
(-) Taxes 30% $210,000
---------------------------------
Net income $490,000
------------------------------
ROE = ($490,000 / $15,000,000) * 2.0 * 2.2
= 0.03267 * 2.0 * 2.2
= 0.1437 or 14.37%
The company's ROE will increase by 11.87%
b) The company should take up the new plan as it is giving the higher ROE.

HRM627 Assignment No. 1 solution

Human Resource Development (HRM627)
Assignment No. 1 Marks: 15

Following are some scenarios for which you are provided with illustrations. You
are required to “NAME” what concept has been portrayed in each case; and also
brief characteristics of that particular concept.

Note: Only in the case of Assignment, 24 Hrs extra / grace period after the due date is usually available to overcome uploading difficulties which may be faced by the students on last date. This extra time should only be used to meet the emergencies and above mentioned due dates should always be treated as final to avoid any inconvenience.

Important Instructions:
Please read the following instructions carefully before attempting the assignment solution.

S. No. Scenario Illustration Concept
Characteristics of
identified
concept
1.
Ali arrives late at office and is threatened by his manager for this. Although his
manager himself does not care about time and always reaches late in meetings etc. In most organizations the boss can interrupt progress to hold an unplanned meeting in the middle of the work day; some bosses schedule a meeting for a specific time and expect all involved parties to be punctual.

2.
Mr. Sajid (the boss) thinks that most employees in his organization are only out for themselves, and their sole interest in the job is to earn money. Employees are assumed to put their individual concerns above that of the organization for which they work.

3.
Sara desires to work on a math equation, because a challenge of finding a solution provides sense of pleasure to her. Writing short stories because you really enjoy writing them, reading a nonfiction book because you are inquisitive about the topic.

Deadline:
• Make sure that you upload the solution file before the due date. No
assignment will be accepted through e-mail once the solution has
been uploaded by the instructor.

Formatting guidelines:
• Use the font style “Times New Roman” and font size “12”.
• It is advised to compose your document in MS-Word 2003.
• Use black and blue font colors only.

Solution guidelines:
• Use APA style for referencing and citation. For guidance search
“APA reference style” in Google and read various website
containing information for better understanding or visit
http://linguistics.byu.edu/faculty/henrichsenl/apa/APA01.html
• Every student will work individually and has to write in the form of an analytical assignment.
• Give the answer according to question, there will be negative marking for irrelevant material.
• For acquiring the relevant knowledge don’t rely only on handouts
but watch the video lectures and use other reference books also.
 

Rules for Marking
Please note that your assignment will not be graded or graded as Zero (0) if:
• It has been submitted after due date
• The file you uploaded does not open or is corrupt
• It is in any format other than .doc (MS. Word)
• It is cheated or copied from other students, internet, books, journals etc.
BEST of LUCK!

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Solution:

1. Critical parent ego
2. Adapted child ego
3. Natural child ego

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1. Critical Parent Ego State
When you behave and respond with evaluative responses that are critical, judgmental, opinionated, demanding, disapproving, disciplining, and so on, you are in critical parent ego state. People in the critical parent ego use a lot of do’s and don’ts. Managers using the autocratic style tend to be in critical parent ego state because they use high task/directive behaviour

2. Adopted Child Ego State
When you behave with confronting responses that express rebelliousness, pouting, anger, fear, anxiety, inadequacy, procrastination, blaming others, and so on, you are in adapted child ego state. Managers should avoid behaving from the adapted child ego state because this type of behavior often leads to the employee becoming emotional and behaving in a similar manner. When managers are transacting with an employee in this ego state, they should not react with similar behavior, but should be in the adult ego state.

3. Natural Child Ego State
When you behave and respond with probing responses that shows curiosity, intimacy, fun, joyfulness, fantasy, impulsiveness, and so on, you are in natural child ego state. Successful managers do not tend to continuously operate from the natural child ego state

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CS403 Assignment No. 2 Announced

Assignment No. 02 

Semester Spring 2011

Database Management Systems-CS403

Total Marks: 15

Due Date: 25/04/2011

Objective: To learn and understand basic concepts of ER Diagram. Instructions: Please read the following instructions carefully before solving & submitting assignment: It should be clear that your assignment will not get any credit (zero marks) if: The assignment is submitted after due date. The submitted assignment does not open or file is corrupt. The assignment is copied (from other student or copy from handouts). The assignment is in the format other than MS Word (doc). Student ID is not mentioned in the assignment File or name of file is other than student ID. For any query about the assignment, contact at cs403@vu.edu.pk

Q Draw an E-R diagram for each of the following situations: A University has many departments whereas each department belongs to that particular university. That university has also many buildings whereas each building belongs to that particular university. The University also has many employees whereas each employee belongs to that particular university. Every employee has only one parking space whereas each parking space belongs to only one employee. Department offers many study programs whereas each programs offered by only a single department. 7.5 Marks In a shopping Store there are many supervisors whereas each supervisor belongs to one store. Product belongs to a single vendor whereas vendor provides so many products. Product belongs to a single category whereas category has many products. A category belongs to a single shelf in a store whereas a shelf may have more than one categories’ products.7.5 Marks

Guidelines / Instructions

It is required to draw Entity Relationship Diagrams for each of the upper situations using Chen’s notation. A sample can be found at http://en.wikipedia.org/wiki/Entity-relationship_model . It is also required to clearly mention that either the relationship is One-to-One, One-to-Many or Many-to-Many

Mgt111 GDB solution

According to Laswell, politics is “who gets what, how, when and where.” Suppose you are Secretary of XYZ Ministry. You want to set up a new department of security in your organization to protect employees. This cover’s ‘what’ portion of Laswell’s definition of politics. Please explain ‘how’ organizational politics can be used in this case? Why politics is essential to setup a new department?

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Solution:

Harold Lasswell defined values as desired goals and power as the ability to participate in decisions, and he conceived political power as the ability to produce intended effects on other people. In our particular scenario the secretary of XYZ Ministry wants a new department for the employees of the Ministry. To achieve this goal the Secretary must establish the fact that this new department is a need for the employees. Lasswell also maintained that power is held by the elite so the decision and work to establish the department must come through the secretary and after its completion the employees should be informed of it.

CS403 Assignment No. 2 Announced

Assignment No. 02 

Semester Spring 2011

Database Management Systems-CS403

Total Marks: 15

Due Date: 25/04/2011

Objective: To learn and understand basic concepts of ER Diagram. Instructions: Please read the following instructions carefully before solving & submitting assignment: It should be clear that your assignment will not get any credit (zero marks) if: The assignment is submitted after due date. The submitted assignment does not open or file is corrupt. The assignment is copied (from other student or copy from handouts). The assignment is in the format other than MS Word (doc). Student ID is not mentioned in the assignment File or name of file is other than student ID. For any query about the assignment, contact at cs403@vu.edu.pk

Q Draw an E-R diagram for each of the following situations: 1.       A University has many departments whereas each department belongs to that particular university. That university has also many buildings whereas each building belongs to that particular university. The University also has many employees whereas each employee belongs to that particular university. Every employee has only one parking space whereas each parking space belongs to only one employee. Department offers many study programs whereas each programs offered by only a single department. 7.5 Marks 2.       In a shopping Store there are many supervisors whereas each supervisor belongs to one store. Product belongs to a single vendor whereas vendor provides so many products. Product belongs to a single category whereas category has many products. A category belongs to a single shelf in a store whereas a shelf may have more than one categories’ products.7.5 Marks

Guidelines / Instructions

It is required to draw Entity Relationship Diagrams for each of the upper situations using Chen’s notation. A sample can be found at http://en.wikipedia.org/wiki/Entity-relationship_model . It is also required to clearly mention that either the relationship is One-to-One, One-to-Many or Many-to-Many