Question: 1. From the following data, work out the Profitability & Liquidity Ratios Profit before tax 30,000 Interest 2,000 Share Capital, 10,000 Equity Shares of 10

1. From the following data, work out the Profitability & Liquidity Ratios
Profit before tax 30,000
Interest 2,000
Share Capital, 10,000 Equity Shares of 10 each
1,00, 000
Reserves. 50,000
Loans 2,00,000
Tax. @ 30%
Other Income 3,000
Market Price of shares 30
Stock 40, 000
Debtors 50, 000
Cash & Bank Balances 10,000
2. From the following data compute the Economic Value Added.
Profit Before Tax 70,000
Other Income 10,000
Tax@ 40%
Total Capital employed 6,00,000
Shareholders Funds distributed 1:1 between Share Capital ( cost 18% & Reserves ( cost @ 20%)
Debt- Equity Ratio 2:1
Interest on secured term loan @
12%
Interest on Debentures @ 14%
( Ratio 1:1 between Term Loan & Debentures)

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