8/10/2019 New Microsoft Office Excel Worksheet 2.xlsx

1/15

Current assets

Current liabilities

For Prufrock, the 2002 current ratio is:

$708

$540

= 1.31 times

Current assets - Inventory

Current liabilities

$708 - 422

$204

= .53 times

Net income

Sales

$363

$2,311

= 15.70%Net income

Total assets

$363

$3,588

= 10.12%

Net income

Total equity

$363

$2,591

= 14%

Sales

Sales

Net income

Total equity

Net income

Total assets

Net incomeSales

ROE = Profit margin X

= 15.7% X

= 14%

=Current Ratio

Current Ratio =

Quick ratio =

Quick ratio =

Profit margin =

=

Return on assets =

=

Return on equity =

=

ROE X

Return on equity = =

=

= X

ROE = X

8/10/2019 New Microsoft Office Excel Worksheet 2.xlsx

2/15

Net income Assets

Total assets Total equity

Net income Assets

Total equity Assets

Assets

Total equity

Sales AssetsTotal assets Total equity

Total Assets turnover X Equity multiplyer

0.64 X 1.39

X

X

X

8/10/2019 New Microsoft Office Excel Worksheet 2.xlsx

3/15

6453

1200

(1+.1)1

2400

(1+.1)3

2600

(1+.1)4

1783.10

FV

(1+R)N

PV

PV =

PV of year 1 CF : = 1090.91

PV of year 3 CF : = 1803.16

PV of year 3 CF : = 1775.83

8/10/2019 New Microsoft Office Excel Worksheet 2.xlsx

4/15

Year Cash Flow (Tk.) Cumulative Cash Flow (Tk)

1 6,500 6,500

2 4,000 10,500

3 1,800 12,300

=

Pay Back Period

(PBP)=

=

8/10/2019 New Microsoft Office Excel Worksheet 2.xlsx

5/15

NCO-C Here,

D A=Break even year

Tk. 10,000-Tk. 6,500

NCO=Net cash outf

low/Initil Investment

Tk. 4,000 C=Cumulative cash flow

of the break even year

D=Cash inflow after the

break even year1.875

A +

1+

8/10/2019 New Microsoft Office Excel Worksheet 2.xlsx

6/15

Year Cash Flow (Tk.) Cumulative Cash Flow (Tk)

1 7,000 7,000

2 4,000 11,000

3 5,000 16,000

= 2.20

Pay Back Period

(PBP)= A +

= 2+

8/10/2019 New Microsoft Office Excel Worksheet 2.xlsx

7/15

8/10/2019 New Microsoft Office Excel Worksheet 2.xlsx

8/15

C1 C2 C3 Here,

(1+R)1 (1+R)2 (1+R)3NCO=Net cash

outflow/Initil Investment

Tk. 6.500 Tk. 4,000 Tk. 1,800 C= Cash Flow

(1+.15)1 (1+.15)2 (1+.15)3R=Interest Rate/Discount

Rate

= [ 5652 + 3025 + 1184 ] - 10000 N=Number of years

= -139.72

- NCO

Tk. 10000-

+ + ][=Net Present Value

(NPV)

= [ ]+ +

8/10/2019 New Microsoft Office Excel Worksheet 2.xlsx

9/15

C1 C2 C3 Here,

(1+R)1 (1+R)2 (1+R)3NCO=Net cash

outflow/Initil Investment

Tk. 7,000 Tk. 4,000 Tk. 5,000 C= Cash Flow

(1+.15)1 (1+.15)2 (1+.15)3R=Interest Rate/Discount

Rate

= [ 6087 + 3025 + 3288 ] - 12000 N=Number of years= 399.11

- NCO

= [ + + ] - Tk. 12,000

]Net Present Value

(NPV)= [ + +

8/10/2019 New Microsoft Office Excel Worksheet 2.xlsx

10/15

C1 C2 C3 Here,

(1+R)1 (1+R)2 (1+R)3 O=N

Tk.5,500 Tk. 4,000 Tk. 3,000 C= C

(1+.08)1 (1+.08)2 (1+.08)3

R=In

teres

t

Rate/

Disc

ount

Rate

= [ 5093 + 3429 + 2381 ] - 11000 N=N

=

If, the company decrease the interest in 6%,

C1 C2 C3

(1+R)1 (1+R)2 (1+R)3

Tk.5,500 Tk. 4,000 Tk. 3,000

(1+.06)1 (1+.06)2 (1+.06)3

= [ 5189 + 3560 + 2519 ] - 11000

=

IRR C Here,

C-D A= Lower interest Rate

Tk. 268 B= Higher interest rate

Tk.268-(-Tk 97) C= NPV of lower interest rate

Tk. 268 D= NPV of higher interest rate

Tk.268+Tk 97)

=

Net Present

Value (NPV)= [ + +

NCO

] - NCO

= [ + + ] - Tk. 11,000

-97

Here, NPV is negetive,so the company reject the project.

Net Present

Value (NPV)=

] -

[ + + ] -

= .06+ x0.02

7.47%

Tk. 11,000

268

= A+ (B-A)

= .06+ (.08-.06)

= [ + +

8/10/2019 New Microsoft Office Excel Worksheet 2.xlsx

11/15

sh Flow

mber of years

8/10/2019 New Microsoft Office Excel Worksheet 2.xlsx

12/15

1 Here,(1+R)N A=Tk. 65000

R= 15% = 0.15

1 N= 5 Years

(1+.15)5

32,684

0.15

= 217,890

217,890

190,000

= 1.15

A{1- }

R

=Tk. 65,000{1- }

0.15

=

Profitability

Index (PI)=

PVA =

8/10/2019 New Microsoft Office Excel Worksheet 2.xlsx

13/15

The constant dividend growth model is:

Dt (1 + g) Here,

(R g) Pt= Price of stock

Dt= Estimated dividend for next year

R= Required rate of return

g= Growth rate

So, the price of the stock today is:

D0 (1 + g) Here,

(R g) P0= Tk. 5

Tk. 5 (1 + .05) D0= 1 years

(.12 .05) R= 12 % = 0.12

= 75 g= 5 % = 0.05

So, the stock price in 3 years will be:Here,

FV= PV (1+R)N

= Tk. 75 (1+ .05)3 R= 5 % = 0.05

= 86.82 N= 3 years

And, the stock price in 15 years will be:

Here,

FV= PV (1+R)N

= Tk. 75 (1+ .05)15 R= 6 % = 0.05

= 155.92 N= 4 years

Future Value (FV)= ?

Present Value (PV)= Tk. 76

Future Value (FV)= ?

Pt =

P0 =

=

Present Value (PV)= Tk. 75

8/10/2019 New Microsoft Office Excel Worksheet 2.xlsx

14/15

Here,

FV= Tk. 1,000

PV= Tk. 500

N=5 years

R= ?

We know that,

FV = PV (1+R)N

Tk. 1,000 = Tk. 500(1+R/2)Nx2

Tk. 1,000 = Tk. 500(1+R/2)5x2

Tk. 1,000 = Tk. 500(1+R/2)10

Tk. 1,000 2+ R R

Tk. 500 2 2

2+ R 2

22+ R

2

2+ R = 1.07 x 2

R = 2.14 -2 2.14

R = 0.14

R = 14%

5000(1+ )Nx2

2 1/10

=1.07

= ( )10

= ( )10/10

8/10/2019 New Microsoft Office Excel Worksheet 2.xlsx

15/15

2