Monday, November 22, 2010
CS101 Assignment No. 2 Solution-2
Assignment no 2
html> <head> <title>bc100401803: Student ID: Your VU ID</title>
<script language="javascript" type="text/javascript">
function checkForm(){
if (document.regForm.one.value.length < 1){
alert("Empty Form field...! Please fill.");
return false;
}
if (document.regForm.two.value.length < 1){
alert("Empty Form field...! Please fill.");
return false;
}
if (document.regForm.three.value.length < 1){
alert("Empty Form field...! Please fill.");
return false;
}
if (document.regForm.four.value.length < 1){
alert("Empty Form field...! Please fill.");
return false;
}
return true;
}
</script>
</head>
<body background="C:\WINDOWS\Web\Wallpaper\Crystal.jpg" >
<form name="regForm" action="http://www.vu.edu.pk" method="post"
onSubmit="return checkForm()">
<table border="0" align="center">
<tr><td align="center" bgcolor="sky blue"
width="800" colspan="text">
<font color="white"><b>ADMISSION
FORM</b></font></td></tr></table>
<table border="1" bordercolor="sky blue"
align="center" bgcolor="white">
<tr><td colspan="2" align="left" bgcolor="sky
blue" width="800">
<font
color="white"><b>BIO-DATA</b></font></td></tr>
<tr><td align="left"
width="30%"><b>Candidate's Name : </b></td>
<td width="70%">
<input type="text" align="left" name="one"
size="20" maxlength="25"><b><font
color="red">
Max. character limit is 25 </font></b></td></tr>
<tr><td align="left"
width="30%"><b>Father's Name : </b></td>
<td width="70%"><input type="text"cols="30"
rows="3"></textarea><b><font
color="red"></td></tr>
<tr><td align="left"
width="30%"><b>Upload Your CV : </b></td>
<td width="70%"><input type="file"
name="four" value="Browse"
enctype="multipart"></td></tr>
<tr><td colspan="2" align="left" bgcolor="sky
blue" width="800">
<b><font
color="white">EDUCATION</b></font></td></tr>
<tr><td align="left"
width="30%"><b>Highest Education :
</b></td><td width="70%">
<select name="H.E">
<option selected> --- Click to Select --- </option>
<option>BBA</option>
<option>B.A</option>
<option>BS(IT)</option>
<option>BCS</option>
<option>MBA</option>
<option>MCS</option>
</select></td></tr>
<tr><td valign="top" width="30%"><b>GRADE
: </b></td>
<td width="70%"><input type="radio"
name="radio">A+<br>
<input type="radio" name="radio">A<br>
<input type="radio" name="radio">B+<br>
<input type="radio" name="radio">B<br>
<input type="radio" name="radio">C+<br>
<input type="radio" name="radio">C<br>
</td></tr>
<tr><td colspan="2" align="left" bgcolor="sky
blue" width="800">
<font color="white"><b>DEGREE
PROGRAMME</b></font></td></tr>
<tr><td width="30%"><b>Program Applied for:
</b></td><td width="70%">
<select name="applied">
<option selected> --- Click to Select --- </option>
<option>MS(CS)</option>
<option>MS(BA)</option>
<option>MCS</option>
<option>MBA</option>
<option>BCS</option>
<option>BBA</option>
</select></td></tr>
<tr><td valign="top"
width="30%"><b>Session Applied for : </b></td>
<td width="70%">
<input type="checkbox" name="check">Morning<br>
<input type="checkbox"
name="check">Afternoon<br>
<input type="checkbox" name="check">Evening<br>
</td></tr>
<tr><td align="left" width="30%"></td>
<td width="70%"><input type="submit"
name="regForm" value="Submit" >
<input type="reset"></td></tr>
<table border="0" align="center">
<tr><td align="center" bgcolor="sky blue"
width="800" colspan="text">
</table> </form> <tr>
<form><td width="100%" bgcolor="Darkblue" align="center"><font color="white"><b>2010 All Rights reserved</b></font></form></td>
</body> </html>
Fin630 Online Quiz No. 2 Announcement
Which of the following statements highlights the financial condition of a company at any single point of time?
Select correct option:
Income Statement
Cash Flow Statement
Balance Sheet
Statement of Owner's Equity
Question # 14 of 15 ( Start time:) Total Marks: 1
Which of the following is the theories searching the patterns in randomness?
Elliott wave theory
Chaos theory
Portfolio theory
Valuation theory
Question # 13 of 15 ( Start time:) Total Marks: 1
More investors are using technical analysis now than in earlier periods because:
Select correct option:
Investors are able to know the quantitative calculations of technical analysis
More business schools are now teaching technical analysis
The Internet makes more data available to track stock prices
There is now more empirical evidence supporting technical analysis
Question # 12 of 15 ( Start time:) Total Marks: 1
All of the following steps are involved in estimating the earnings stream, EXCEPT:
Estimating corporate sales
Estimating corporate earnings before taxes
Estimating corporate liabilities and assets
Estimating corporate earnings after taxes
Question # 11 of 15 ( Start time:) Total Marks: 1
Buying power of an investor is calculated as:
Select correct option:
Assets – liabilities
Equity – debt balance
Short term debt – long tem debt
Current assets – current liabilities
Question # 10 of 15 ( Start time:) Total Marks: 1
Which of the following terms refer to the recurring and fluctuating levels of economic activity that an economy experiences over a long period of time?
Select correct option:
Claims cycle
Reaction cycle
Business cycle
Capital cycle
Question # 9 of 15 ( Start time:) Total Marks: 1
Which of the following ratios indicate the ability of a company to repay its current liabilities from it operating cash flow?
Select correct option:
Price to sales ratio
Price to book value ratio
Leverage ratio
Debt coverage ratio
Question # 8 of 15 ( Start time:) Total Marks: 1
Which of the following is a characteristic of cyclical stock?
Select correct option:
Their value is tied with the overall state of the national economy.
They are low-priced, speculative and risky securities.
They have stable earnings and no extensive liabilities
None of the given options
Question # 7 of 15 ( Start time:) Total Marks: 1
The S&P 500 Composite Stock Index is favored by most institutional investors and money managers. What does S&P stands for?
Select correct option:
Sophisticated and Poised
Standard and Poor
Stylish and Permanent
Sojourn and Perennial
Question # 6 of 15 ( Start time:) Total Marks: 1
Cash flow statement in conjunction with which of the following statements provides information on liquidity, viability and financial adaptability of company?
Select correct option:
The Income Statement
The Cash Flow Statement
The Balance Sheet
The Statement of Owner's Equity
Question # 5 of 15 ( Start time:) Total Marks: 1
Which of the following take place at the declining stage of the industry life cycle?
Select correct option:
Firm operations get more stable and dependable
Rapid growth in demand and subsequent profits occur
Costs get stable rather than decreasing or increasing
Sales growth decline as new products are developed
Question # 4 of 15 ( Start time:) Total Marks: 1
Which of the following ratios are of more concern for the shareholders?
Select correct option:
Liquidity and profitability
Liquidity and leverage
Profitability and activity
Profitability and leverage
Question # 3 of 15 ( Start time:) Total Marks: 1
Which of the following function removes the fear of buying or selling at rip off price?
Select correct option:
Fair pricing function
Economic function
Exchange function
Continuous pricing function
Question # 2 of 15 ( Start time:) Total Marks: 1
Which of the following is the source of income for members or brokers?
Select correct option:
Copyright fee
Application fee
Fixed cost fee
Trading fee
Question # 1 of 15 ( Start time:) Total Marks: 1
Which of the following take place at the expansion stage of the industry life cycle?
Select correct option:
Firm operations get more stable and dependable
Rapid growth in demand and subsequent profits occur
Costs get stable rather than decreasing or increasing
Sales growth decline as new products are developed
Fin622 GDB No. 1 solution
Project B
Project C
Initial investment
45,000
70,000
50,000
Cash inflows
Year 1
20,000
20,000
30,000
Year 2
20,000
26,000
28,000
Year 3
20,000
30,000
35,000
Consider the discount factor to be 14% and that the company has sufficient funds to take projects.
Required:
I. On the basis of NPV approach, which project(s) you would select if the projects are independent and why?
II. On the basis of NPV approach, which project(s) you would select if the projects are mutually exclusive and why?
FIN622 GDB No. 1 Solution
Project A
Initial Investment = 45000
Years 1 2 3
Cash Flows 20000 20000 20000
Calculation:-
NPV = -Io + CF1/(1+r)t + CF2/(1+r)t + CF3/(1+r)t
NPV = - 45000 + 20000/(1+0.14)1 + 20000/(1+0.14)2 + 20000/(1+0.14)3
NPV = -45000 + 17543.859 + 15389.350 + 13499.430
NPV = - 45000 + 46432.639
NPV = 1432.639
Project B
Initial Investment = 70000
Years 1 2 3
Cash Flows 20000 26000 30000
Calculation:-
NPV = -Io + CF1/(1+r)t + CF2/(1+r)t + CF3/(1+r)t
NPV = - 70000 + 20000/(1+0.14)1 + 26000/(1+0.14)2 + 30000/(1+0.14)3
NPV = - 70000 + 17543.859 + 20006.155 + 20249.145
NPV = - 70000 + 57800
NPV = - 12200
Project C
Initial Investment = 50000
Years 1 2 3
Cash Flows 30000 28000 35000
Calculation:-
NPV = -Io + CF1/(1+r)t + CF2/(1+r)t + CF3/(1+r)t
NPV = - 50000 + 30000/(1+0.14)1 + 28000/(1+0.14)2 + 35000/(1+0.14)3
NPV = - 50000 + 26316 + 21545 + 23624
NPV = - 50000 + 71485
NPV = 21485
1) On the basis of NPV approach, which project(s) you would select if the projects are independent and why?
Reference:
MGT201 (Page 47)
Independent: implies that the cash flows of the two investments are not linked to each other
Solution:-
If the projects are independent then I will select Project C 1st and after that I will select Project A on 2nd because both have Positive NPV.
2) On the basis of NPV approach, which project(s) you would select if the projects are mutually exclusive and why?
Reference:
MGT201 (page 47)
Mutually Exclusive: means that you can invest in ONE of the investment choices and having chosen one you cannot choose another.
Solution:-
I will Select Project C because it has positive NPV and also have greater amount Rs. 21485.
Fin621 GDB Announced
"Last year we purchased a piece of land for Rs. 200,000. During this, the inflation has driven prices up by 12 %, and an expert has also just told me that we can sell this land for Rs. 300,000 whereas our balance sheet still shows the land at Rs. 200,000. It should be valued at Rs. 300,000 or at least at Rs. 224,000 (after the effect of 12% inflation)".
Identify accounting principle(s) (GAAP) applicable to this situation which negates Mr. Ali's Claim. "