Corporate Finance
1. Refer the published Balance Sheet of any listed Company. Identify its sources of funds. Explain any 4 in brief. (Balance Sheet need not to be copied or pasted in the answer) Compare and rank the sources identified with respect to their cost to the company (high, low). Discuss your observation.
2. M/s Priya Industries Ltd. is evaluating 2 options of investments. Each one has the following mentioned Cash Flows.
Evaluate the projects using:
i) Pay-back period
ii) NPV
iii) IRR
(Show the calculations for each method.)
Which option you as the Chief Finance Officer of the Company would you select? Give reasons.
| Year | A | B |
| 0 | -40000 | -50000 |
| 1 | 5000 | 8500 |
| 2 | 12000 | 15000 |
| 3 | 10000 | 12000 |
| 4 | 12500 | 12300 |
| 5 | 10500 | 10500 |
3. a. Sunil is valuating 2 investment proposals:
i) Invest Rs. 3 lacs for 5 years earn an interest of 8% compounded quarterly.
ii) Investment of Rs. 20,000 per year for 5 years @ 10% compounded quarterly.
Which option should he go for and why?
3. b. Sanjana has a debenture of Par-value Rs. 100/- @ 6%. Calculate its current yield if:
i) Market Price is Rs. 98.20
ii) Market Price is Rs. 102.00
What inference can you draw from this about the relation between Market price and yield?
NMIMS Solutions December 2022
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