NMIMS Global Access
School for Continuing Education (NGA-SCE)
Course: Corporate Finance
Internal Assignment Applicable for December 2023 Examination
Assignment Marks: 30
Instructions:
All Questions carry equal marks. All Questions are compulsory
All answers to be explained in not more than 1000 words for question 1 and 2 and for question 3 in not more than 500 words for each subsection. Use relevant examples, illustrations as far as possible.
All answers to be written individually. Discussion and group work is not advisable.
Students are free to refer to any books/reference material/website/internet for attempting their assignments, but are not allowed to copy the matter as it is from the source of reference.
Students should write the assignment in their own words. Copying of assignments from other students is not allowed
Students should follow the following parameter for answering the assignment questions
For Theoretical Answer
| Assessment Parameter | Weightage |
| Introduction | 20% |
| Concepts and Application | 60% |
| related to the question | |
| Conclusion | 20% |
For Numerical Answer
| Assessment Parameter | Weightage |
| Understanding and usage | 20% |
| of the formula | |
| Procedure / Steps | 60% |
| Correct Answer & | 20% |
| Interpretation |
- Calculate the WACC for M/s Antara Limited with the following information:
(10 marks)
| Capital Structure | BV |
| Share Capital | 50,00,000 |
| Retained Earnings | 2,50,000 |
NMIMS Global Access
School for Continuing Education (NGA-SCE)
Course: Corporate Finance
Internal Assignment Applicable for December 2023 Examination
| Debentures | 15,00,000 |
| Bank Loan | 2,00,000 |
Share price of M/s Antara Limited at the beginning of the year was Rs. 50 and end of the year was Rs. 55 per share. Dividend declared was Rs. 5. Beta of the Company was pegged at 0.6. M/s Antara had floated its Debentures at 8% fixed interest for 5 years. The bank had extended a loan on floating rate basis. Interest paid during the year was Rs. 10000. Government securities are earning a return of 4% currently.
- Calculate the Gross and the Net Operating Cycle for Vishal & Co. Ltd. using
| the following information. (Assume 360 days in a year). | (10 marks) | |
| Amt. in Rs. | ||
| Opening Balances | ||
| Raw Material | 200,000 | |
| WIP | 60,000 | |
| Finished Goods | 600,000 | |
| Debtors | 250,000 | |
| Creditors | 550,000 | |
| Closing Balances | ||
| Raw Material | 300,000 | |
| WIP | 65,000 | |
| Finished Goods | 725,000 | |
| Debtors | 215,000 | |
| Creditors | 575,000 | |
NMIMS Global Access
School for Continuing Education (NGA-SCE)
Course: Corporate Finance
Internal Assignment Applicable for December 2023 Examination
| Annual Purchase of Raw Material | 3,200,000 |
| Manufacturing Expenses | 550,000 |
| Selling & Distribution Costs | 300,000 |
| Sales | 4,480,000 |
3)
- What should be the amount to be invested:
- To receive Rs. 2,00,000 per annum in perpetuity at an interest rate of 8%.
- In addition to conditions of point (i) above, if a growth rate of 3% is expected every year.
To receive Rs. 4,00,000 per annum in perpetuity at an interest rate of 5%.
(5 marks)
- Calculate the current ratio and Acid Test Ratio with the following information
(5 marks)
| Debtors | 500,000 |
| Cash and Bank | 200,000 |
| Inventory | 400,000 |
| Trade Payables | 150,000 |
| Bank OD | 50,000 |
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