MGT411 Assignment No. 2 Solution

QUESTION #1:Marks 20)
Mr.Toseef,the Chief Financial Officer of a mutual fund Company,was given the task to ascertain the firm ’s bond and stock values.To perform the necessary analysis,Mr.Toseef gathered the following relevant data on the firm ’s bonds and stocks.BONDS:The firm has a Rs.1,000 par value bond with a 9 percent coupon interest rate outstanding. The bond has 12 years remaining to its maturity date.STOCKS:The firm ’s common stock currently pays an annual dividend of Rs.1.80 per share.The required return on the common stock is 12 percent.
 

REQUIRED:
Bonds:

A.If interest is paid annually ,what is the value of the bond when the required stated return is 10 percent
B.Using the 10 percent required return,find the bond ’s value when interest is paid semiannually Stock: 

Estimate the value of common stock under each of the following dividend-growth-rate assumptions: 

A.Dividends are expected to grow at a constant annual rate of 5 percent to infinity.
B.Dividends are expected to grow at an annual rate of 5 percent for each of the next 3 years followed by a constant annual growth rate of 4 percent in years 4 to infinity.

Solution:-

Question#1 Solution:

Bond Valuation
Part a)
Bond value = c [1 – 1/(1+r)^n] / r + Par/(1+r)^n
Bond value = 90 [1 – 1/(1+0.10)^12] / 0.10 + 1000/(1+0.10)^12
Bond Value = 90 [1 – 0.3186 /0.10] + 1000/3.1384
Bond value = 90 (6.814) + 318.63
Bond value = 613.26 +318.63
Bond Value = 931


Part b)
Bond value = c [1 – 1/(1+r)^n ]/ r + Par/(1+r)^n
Bond value = 45 [1 – 1/(1+0.05)^24 / 0.05 + 1000/(1+0.05)^24
Bond Value = 45 [1 – 0.3100 /0.05] + 1000/3.2250
Bond value = 45 (13.8) + 310.07
Bond value = 621 +310.
Bond Value = 931


Part a)
P = Div(1+g)/rF +rP – g

D = 1.80
Rce = rF +rP = 12%
g = 5%

P = 1.80 (1+0.05) / 12% - 5%
P = 1.80 (1.05) / 7%
P = 1.89/0.07
P = 27

Part b)
Div1= Do(1+g)3
Div1= 1.80 (1+0.05)3
Div1= 1.80 (1.1576)
Div1 = 2.083

P0 = D0 x (1 + g)/(R – g)
P0= 2.083 x 1.04/(0.12 – 0.04)
P0= 2.166 / 0.08
P0= 27.075

QUESTION #2 Marks 10)
A commercial bank has following data:
Total assets valued Rs.1,000,000
Item Assets Liabilities
Interest rate sensitive 30%40%
Interest rate non-sensitive 70%60%
Initial interest rate 10%7%
Interest rate increase 2%both in assets and liabilityRequired
What will be the net interest profit increase /decrease due to the interest rate change your answer should be in absolute amount.

Solution:-

Assets
Liabilities
Interest rate sensitive
300000
400000
Not interest rate sensitive
700000
600000
Initial interest rate
10%
7%
New increased interest rate on interest rate sensitive assets & liabilities
12%
9%
Revenue from Assets
Revenue from Liabilities
At initial interest rate
(0.10×300000)+(0.10×700000)
=100000
(0.07×400000)+(0.07×600000)
=70000
After an increase in interest rate
(0.12×300000)+(0.10×700000)
=106000
(0.09×400000)+(0.07×600000)
=78000
Profits at an initial interest rate:
Profit = (100000) – (70000) = 30000
Profits after an increase in interest rate:
Profit = (106000) – (78000)=28000
Gap Analysis Gap between interest rate sensitive assets and interest rate sensitive liabilities = (Interest rate sensitive assets of 300000) – (Interest rate sensitive liabilities Of 400000) =(Gap of - 100000)

Please do make changes in these assignment otherwise every one who copy this assignment as it is will awarded zero marks 

MGT411 Assignment No. 2 Solution

QUESTION #1:Marks 20)
Mr.Toseef,the Chief Financial Officer of a mutual fund Company,was given the task to ascertain the firm ’s bond and stock values.To perform the necessary analysis,Mr.Toseef gathered the following relevant data on the firm ’s bonds and stocks.BONDS:The firm has a Rs.1,000 par value bond with a 9 percent coupon interest rate outstanding. The bond has 12 years remaining to its maturity date.STOCKS:The firm ’s common stock currently pays an annual dividend of Rs.1.80 per share.The required return on the common stock is 12 percent.
 

REQUIRED:
Bonds:

A.If interest is paid annually ,what is the value of the bond when the required stated return is 10 percent
B.Using the 10 percent required return,find the bond ’s value when interest is paid semiannually Stock: 

Estimate the value of common stock under each of the following dividend-growth-rate assumptions: 

A.Dividends are expected to grow at a constant annual rate of 5 percent to infinity.
B.Dividends are expected to grow at an annual rate of 5 percent for each of the next 3 years followed by a constant annual growth rate of 4 percent in years 4 to infinity.

Solution:-

Question#1 Solution:

Bond Valuation
Part a)
Bond value = c [1 – 1/(1+r)^n] / r + Par/(1+r)^n
Bond value = 90 [1 – 1/(1+0.10)^12] / 0.10 + 1000/(1+0.10)^12
Bond Value = 90 [1 – 0.3186 /0.10] + 1000/3.1384
Bond value = 90 (6.814) + 318.63
Bond value = 613.26 +318.63
Bond Value = 931


Part b)
Bond value = c [1 – 1/(1+r)^n ]/ r + Par/(1+r)^n
Bond value = 45 [1 – 1/(1+0.05)^24 / 0.05 + 1000/(1+0.05)^24
Bond Value = 45 [1 – 0.3100 /0.05] + 1000/3.2250
Bond value = 45 (13.8) + 310.07
Bond value = 621 +310.
Bond Value = 931


Part a)
P = Div(1+g)/rF +rP – g

D = 1.80
Rce = rF +rP = 12%
g = 5%

P = 1.80 (1+0.05) / 12% - 5%
P = 1.80 (1.05) / 7%
P = 1.89/0.07
P = 27

Part b)
Div1= Do(1+g)3
Div1= 1.80 (1+0.05)3
Div1= 1.80 (1.1576)
Div1 = 2.083

P0 = D0 x (1 + g)/(R – g)
P0= 2.083 x 1.04/(0.12 – 0.04)
P0= 2.166 / 0.08
P0= 27.075

QUESTION #2 Marks 10)
A commercial bank has following data:
Total assets valued Rs.1,000,000
Item Assets Liabilities
Interest rate sensitive 30%40%
Interest rate non-sensitive 70%60%
Initial interest rate 10%7%
Interest rate increase 2%both in assets and liabilityRequired
What will be the net interest profit increase /decrease due to the interest rate change your answer should be in absolute amount.

Solution:-

Assets
Liabilities
Interest rate sensitive
300000
400000
Not interest rate sensitive
700000
600000
Initial interest rate
10%
7%
New increased interest rate on interest rate sensitive assets & liabilities
12%
9%
Revenue from Assets
Revenue from Liabilities
At initial interest rate
(0.10×300000)+(0.10×700000)
=100000
(0.07×400000)+(0.07×600000)
=70000
After an increase in interest rate
(0.12×300000)+(0.10×700000)
=106000
(0.09×400000)+(0.07×600000)
=78000
Profits at an initial interest rate:
Profit = (100000) – (70000) = 30000
Profits after an increase in interest rate:
Profit = (106000) – (78000)=28000
Gap Analysis Gap between interest rate sensitive assets and interest rate sensitive liabilities = (Interest rate sensitive assets of 300000) – (Interest rate sensitive liabilities Of 400000) =(Gap of - 100000)

Please do make changes in these assignment otherwise every one who copy this assignment as it is will awarded zero marks 

MGT301 Idea Solution

Mgt301- assignment#2

“Product Plan”

Pepsi and Coca Cola are market leaders of beverage industry in Pakistan .You are the marketing manager of newly established Beverage Company, XYZ limited and want to launch a soft drink in market. Higher management assigned you the task to prepare a plan for this product. You should prepare your plan by using following table and give suitable comments with logical reasoning.

Characteristics	Comments	Reasoning
Brand Name	1. The new philosophy could be" Nothing happens until somebody brands something” 2. Branding is more than just a business buzzword. 3. It has become the big art of selling the new product in market.	1. Brands should be seen as more than the difference between the actual cost of a product and its selling price - they represent the sum of all valuable qualities of a product to the consumer 2. successful branding programs begin with superior products and services, backed by excellent customer service that permeates an entire organization. 3. say if I am able to  build a powerful brand, I  will be able to create a powerful marketing plan.
Target Market	Cafeterias, general stores, small and large plazas , big and small shops , five star three hotels, guest houses parks and all public places , etc .	1. The Coca-Cola Company when advertising, has a primary target market for those who are in the age of  14- 22 years , and a secondary market for those people who age ranges  22 to 40 years . 2. Coca-Cola's diet soft drinks are targeted at consumers who are older in age, between the years of 45 and 60 who suffers from diabetes mellitus ( suger in blood )
Positioning Strategy	1. Positioning strategy is the  market-oriented and best articulate the competitive advantage within the market. 2. market-wide (or broad-based) or directed at a particular segment (or niche-focused)	1. By positioning strategy I can create an impressive image of my product in the customers , by doing so they will be more attractive the product and market value of value will be increased. 2.  I need to equip company  with a wide variety of innovative strategic tools if they are to remain competitive. 2. many companies, ranging from multinationals to niche specialists, continue to see volume growth well in excess of the market average. I should follow  their positioning strategy for the successful launching of the product.
Price Strategy	Increase or decrease in price of a product has great effect on the production of product . it affects buyers, competitors, distributors, and suppliers and may interest government as well	1. In the start I should keep the price of the cold drink low , by doing so people will be attracted more and more towards to the new product, but it should be for a short time, after that when the people will get complete awareness about the new product then little increase in the price will not effect on the sale of new product if I will keep the quality of cold drinks up to mark.   2.  on the other hand if I keep the price of cold drink very high in the start then , it is very possible that poor response I will get from the market because rich people will be able to buy the product but more than 70 % ( with average income  or poor income ) will be unable to buy the new soft drink . Due to which initial introduction at a large scale will be unable. And will suffer loss in the market . so for price strategy it is necessary that I should keep the details of market demand price in mind.
Distribution Strategy	for excellent response for the new soft drink from the market , it is necessary fro me to enhance the proper distribution arrangement  to the target market.	1. to introduce the new soft cold drink in the market it is utmost necessary for me to make possible proper distribution of the product to all small and big shop, general stores cafeteria , hotels , parks and in banquet halls . By proper transporting of the product  I will be able to get very fruitful response from the market and % of sales and profit will be very high. 2. on the other hand , after introducing the product in the market if the product is not transported in time to the target places then customers demand will not be fulfilled properly and as a result the product will loose its identity and customers will diverge to the other product and I will suffer a great loss.

Please do make changes in these assignment otherwise every one who copy this assignment as it is will awarded zero marks

MGT301 Idea Solution

Mgt301- assignment#2

“Product Plan”

Pepsi and Coca Cola are market leaders of beverage industry in Pakistan .You are the marketing manager of newly established Beverage Company, XYZ limited and want to launch a soft drink in market. Higher management assigned you the task to prepare a plan for this product. You should prepare your plan by using following table and give suitable comments with logical reasoning.

Characteristics	Comments	Reasoning
Brand Name	1. The new philosophy could be" Nothing happens until somebody brands something” 2. Branding is more than just a business buzzword. 3. It has become the big art of selling the new product in market.	1. Brands should be seen as more than the difference between the actual cost of a product and its selling price - they represent the sum of all valuable qualities of a product to the consumer 2. successful branding programs begin with superior products and services, backed by excellent customer service that permeates an entire organization. 3. say if I am able to  build a powerful brand, I  will be able to create a powerful marketing plan.
Target Market	Cafeterias, general stores, small and large plazas , big and small shops , five star three hotels, guest houses parks and all public places , etc .	1. The Coca-Cola Company when advertising, has a primary target market for those who are in the age of  14- 22 years , and a secondary market for those people who age ranges  22 to 40 years . 2. Coca-Cola's diet soft drinks are targeted at consumers who are older in age, between the years of 45 and 60 who suffers from diabetes mellitus ( suger in blood )
Positioning Strategy	1. Positioning strategy is the  market-oriented and best articulate the competitive advantage within the market. 2. market-wide (or broad-based) or directed at a particular segment (or niche-focused)	1. By positioning strategy I can create an impressive image of my product in the customers , by doing so they will be more attractive the product and market value of value will be increased. 2.  I need to equip company  with a wide variety of innovative strategic tools if they are to remain competitive. 2. many companies, ranging from multinationals to niche specialists, continue to see volume growth well in excess of the market average. I should follow  their positioning strategy for the successful launching of the product.
Price Strategy	Increase or decrease in price of a product has great effect on the production of product . it affects buyers, competitors, distributors, and suppliers and may interest government as well	1. In the start I should keep the price of the cold drink low , by doing so people will be attracted more and more towards to the new product, but it should be for a short time, after that when the people will get complete awareness about the new product then little increase in the price will not effect on the sale of new product if I will keep the quality of cold drinks up to mark.   2.  on the other hand if I keep the price of cold drink very high in the start then , it is very possible that poor response I will get from the market because rich people will be able to buy the product but more than 70 % ( with average income  or poor income ) will be unable to buy the new soft drink . Due to which initial introduction at a large scale will be unable. And will suffer loss in the market . so for price strategy it is necessary that I should keep the details of market demand price in mind.
Distribution Strategy	for excellent response for the new soft drink from the market , it is necessary fro me to enhance the proper distribution arrangement  to the target market.	1. to introduce the new soft cold drink in the market it is utmost necessary for me to make possible proper distribution of the product to all small and big shop, general stores cafeteria , hotels , parks and in banquet halls . By proper transporting of the product  I will be able to get very fruitful response from the market and % of sales and profit will be very high. 2. on the other hand , after introducing the product in the market if the product is not transported in time to the target places then customers demand will not be fulfilled properly and as a result the product will loose its identity and customers will diverge to the other product and I will suffer a great loss.

Please do make changes in these assignment otherwise every one who copy this assignment as it is will awarded zero marks

MGT502 GDB Solution

MilkyWay, is a famous chocolate brand and the company always prefers to use pop stars as the "Brand Ambassador" to promote their product among the public. On the other hand Xyer Company was facing losses until they introduced a famous dermatologist in their TV commercial that influenced the decision of the consumers to buy their skin care products. 

Q. Name the power base used by companies in the above mentioned situations. (2 marks)

Solution:-

According to me MilkyWay uses REFERENT POWER According to me Xyer uses EXPERT POWER 

Please do make changes in these assignment otherwise every one who copy this assignment as it is will awarded zero marks 

MGT502 GDB Solution

MilkyWay, is a famous chocolate brand and the company always prefers to use pop stars as the "Brand Ambassador" to promote their product among the public. On the other hand Xyer Company was facing losses until they introduced a famous dermatologist in their TV commercial that influenced the decision of the consumers to buy their skin care products. 

Q. Name the power base used by companies in the above mentioned situations. (2 marks)

Solution:-

According to me MilkyWay uses REFERENT POWER According to me Xyer uses EXPERT POWER 

Please do make changes in these assignment otherwise every one who copy this assignment as it is will awarded zero marks 

MGMT628 GDB Solution HRM628

Discussion Question

“In an organization, change in processes and structure were required. Management of the organization started altering the processes slowly in the required fields. The result of change started showing its positive signs even in early intervention stages. What this process of brining permanent change and making it part of origination is called? And how top management can make sure that this process has matured? ”

Solution:-

i guess its simply called 'change management',,, the process is started to adopt the change, or to incorporate it,, where as bureaucratic and post bureaucratic organizations failed in a turbulent environment because they wanted their internal environment to remain constant (same, as it was before), and they resisted the change. the process of managing change or incorporating the turbulent environment is known as change management, where organization adopt changes to its processes, structure, even sometime into their statements. by some organizations change is considered as a constructive force rather then a destructive one.

the simple process of change management is a three step process, given below
1- unfreeze
2- make the necessary changes
3- re-freeze

Please do make changes in these assignment otherwise every one who copy this assignment as it is will awarded zero marks 

MGMT628 GDB Solution HRM628

Discussion Question

“In an organization, change in processes and structure were required. Management of the organization started altering the processes slowly in the required fields. The result of change started showing its positive signs even in early intervention stages. What this process of brining permanent change and making it part of origination is called? And how top management can make sure that this process has matured? ”

Solution:-

i guess its simply called 'change management',,, the process is started to adopt the change, or to incorporate it,, where as bureaucratic and post bureaucratic organizations failed in a turbulent environment because they wanted their internal environment to remain constant (same, as it was before), and they resisted the change. the process of managing change or incorporating the turbulent environment is known as change management, where organization adopt changes to its processes, structure, even sometime into their statements. by some organizations change is considered as a constructive force rather then a destructive one.

the simple process of change management is a three step process, given below
1- unfreeze
2- make the necessary changes
3- re-freeze

Please do make changes in these assignment otherwise every one who copy this assignment as it is will awarded zero marks 

IT430 Current Quiz

Question # 1 of 10 ( Start time: 02:48:44 PM ) Total Marks: 1

To overcome the lack of physical proximity appearance problem in e-business, which technology is going to be used?
Select correct option:
Biometrics
Video conferencing
Cryptography
Biometrics and Video conferencing

uestion # 2 of 10 ( Start time: 02:49:58 PM ) Total Marks: 1
Which of the following is NOT an advertising payment mode?
Select correct option:
Pay-per-sale
Pay-per-click
Pay-per-keypressZZZZZZZZ
Pay-per-lead

Question # 3 of 10 ( Start time: 02:50:47 PM ) Total Marks: 1
SETSET(secure Electronic Transaction) was developed by
Select correct option:
Microsoft
Netscape Navigator
Master Cards and VISA
All of the optionsZZZZZZZZZ

Question # 4 of 10 ( Start time: 02:52:34 PM ) Total Marks: 1
Which of these can be used for advertisement purpose?
Select correct option:
Telephone
Newspapers
Magazines
All of aboveZZZ

Question # 5 of 10 ( Start time: 02:54:06 PM ) Total Marks: 1
Let us, suppose that you have hosted your e-commerce website, Promotion messages can be sent when potential client is
Select correct option:
online
offline
both online and offline
visiting head office

Question # 7 of 10 ( Start time: 02:56:16 PM ) Total Marks: 1
Log files consist on information about each visitor's _________.
Select correct option:
Location
IP address
Time of visit
All of above

Question # 8 of 10 ( Start time: 02:56:52 PM ) Total Marks: 1
Which entity does not include in SET(secure Electronic Transaction)?
Select correct option:
Seller
Buyer
Payment gateway
Bank.

Question # 9 of 10 ( Start time: 02:57:30 PM ) Total Marks: 1
Do you think that "www.vu.edu.pk" can be considered as university's advertisement website?
Select correct option:
Yes
No

Question # 10 of 10 ( Start time: 02:57:57 PM ) Total Marks: 1
Let us, suppose that you have hosted early your e-commerce website to sell sweets online: Your customers are acquaint with the name of your company and “DesiGhee Burfi ”. They have never interacted with your company. Which of following loyalty stages they are?
Select correct option:
Awareness
Exploration
Familiarity
Commitment

IT430 Current Quiz

Question # 1 of 10 ( Start time: 02:48:44 PM ) Total Marks: 1

To overcome the lack of physical proximity appearance problem in e-business, which technology is going to be used?
Select correct option:
Biometrics
Video conferencing
Cryptography
Biometrics and Video conferencing

uestion # 2 of 10 ( Start time: 02:49:58 PM ) Total Marks: 1
Which of the following is NOT an advertising payment mode?
Select correct option:
Pay-per-sale
Pay-per-click
Pay-per-keypressZZZZZZZZ
Pay-per-lead

Question # 3 of 10 ( Start time: 02:50:47 PM ) Total Marks: 1
SETSET(secure Electronic Transaction) was developed by
Select correct option:
Microsoft
Netscape Navigator
Master Cards and VISA
All of the optionsZZZZZZZZZ

Question # 4 of 10 ( Start time: 02:52:34 PM ) Total Marks: 1
Which of these can be used for advertisement purpose?
Select correct option:
Telephone
Newspapers
Magazines
All of aboveZZZ

Question # 5 of 10 ( Start time: 02:54:06 PM ) Total Marks: 1
Let us, suppose that you have hosted your e-commerce website, Promotion messages can be sent when potential client is
Select correct option:
online
offline
both online and offline
visiting head office

Question # 7 of 10 ( Start time: 02:56:16 PM ) Total Marks: 1
Log files consist on information about each visitor's _________.
Select correct option:
Location
IP address
Time of visit
All of above

Question # 8 of 10 ( Start time: 02:56:52 PM ) Total Marks: 1
Which entity does not include in SET(secure Electronic Transaction)?
Select correct option:
Seller
Buyer
Payment gateway
Bank.

Question # 9 of 10 ( Start time: 02:57:30 PM ) Total Marks: 1
Do you think that "www.vu.edu.pk" can be considered as university's advertisement website?
Select correct option:
Yes
No

Question # 10 of 10 ( Start time: 02:57:57 PM ) Total Marks: 1
Let us, suppose that you have hosted early your e-commerce website to sell sweets online: Your customers are acquaint with the name of your company and “DesiGhee Burfi ”. They have never interacted with your company. Which of following loyalty stages they are?
Select correct option:
Awareness
Exploration
Familiarity
Commitment

FIN630 Current Quiz

Quiz Start Time: 03:15 PM Time Left 53
sec(s)


Question # 1 of 15 ( Start time: 03:15:09 PM ) Total Marks: 1
Which of the following represents the total amount that may be distributed to its shareholders?
Select correct option:

Other income
Net income
Extraordinary income
Operating income








Quiz Start Time: 03:15 PM Time Left 42
sec(s)


Question # 2 of 15 ( Start time: 03:15:55 PM ) Total Marks: 1
Which of the following take place at the pioneering stage of the industry life cycle?
Select correct option:

Firm operations get more stable
Rapid growth in demand occur
Costs get stable rather than decreasing
Sales growth decline as products obsolete








Quiz Start Time: 03:15 PM Time Left 47
sec(s)


Question # 3 of 15 ( Start time: 03:16:51 PM ) Total Marks: 1
When comparing bonds with other investments, which of the following should be used to make a realistic comparison?
Select correct option:

The effective annual yield
The dividend yield
The treasury yield
The percentage yield









Quiz Start Time: 03:15 PM Time Left 29
sec(s)


Question # 4 of 15 ( Start time: 03:17:41 PM ) Total Marks: 1
Which of the following stage offers the highest potential returns and greatest risk?
Select correct option:

Pioneering stage
Expansion stage
Stabilization stage
Decline stage








Quiz Start Time: 03:15 PM Time Left 70
sec(s)


Question # 5 of 15 ( Start time: 03:19:03 PM ) Total Marks: 1
Which of the following invest in undervalued stocks as determined by fundamental financial analysis?
Select correct option:

Growth funds
Value funds
Mutual funds
Hedge funds







Quiz Start Time: 03:15 PM Time Left 62
sec(s)


Question # 6 of 15 ( Start time: 03:20:29 PM ) Total Marks: 1
Which of the following promotes investment education and ethical behavior among those involved in the investment business?
Select correct option:

Securities Investor Protection Corporation (SIPC)
Licensed International Financial Analyst (LIFA)
Chartered Financial Analyst Institute (CFAI)
Securities and Exchange Commission (SEC)







Quiz Start Time: 03:15 PM Time Left 51
sec(s)


Question # 7 of 15 ( Start time: 03:21:21 PM ) Total Marks: 1
The higher the coupon on the bond:
Select correct option:

The lesser is its reinvestment rate risk
The higher is its reinvestment rate risk
The higher is its reinvestment rate of return
The lesser is its reinvestment rate of return






Quiz Start Time: 03:15 PM Time Left 51
sec(s)


Question # 8 of 15 ( Start time: 03:22:45 PM ) Total Marks: 1
In which of the following accounts do investors place funds to be borrowed by finances?
Select correct option:

Instant access savings accounts
Continuous funding system account
Personal finance access accounts
International savings accounts






Quiz Start Time: 03:15 PM Time Left 18
sec(s)


Question # 9 of 15 ( Start time: 03:23:35 PM ) Total Marks: 1
Which of the following rated bonds are not paying interest?
Select correct option:

AAA rated
BBB rated
C rated
D rated








Quiz Start Time: 03:15 PM Time Left 16
sec(s)


Question # 10 of 15 ( Start time: 03:24:53 PM ) Total Marks: 1
All of the following are characteristics of stop orders EXCEPT:
Select correct option:

Protecting profits
Minimizing losses
Rapid execution
It is seldom used by investors





Quiz Start Time: 03:15 PM Time Left 59
sec(s)


Question # 11 of 15 ( Start time: 03:26:17 PM ) Total Marks: 1
Which of the following markets is the market for investment in short-term activities?
Select correct option:

Android market
Capital market
Money market
Target market







Quiz Start Time: 03:15 PM Time Left 59
sec(s)


Question # 12 of 15 ( Start time: 03:26:56 PM ) Total Marks: 1
Which of the following statement is TRUE about yield to maturity?
Select correct option:

Yield to maturity is inversely related to bond price
Yield to maturity is always less than the yield to call
Yield to maturity will be less than the current yield for bonds purchased at a discount
Yield to maturity tends to fall with a rise in duration









Quiz Start Time: 03:15 PM Time Left 68
sec(s)


Question # 13 of 15 ( Start time: 03:27:30 PM ) 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







Quiz Start Time: 03:15 PM Time Left 69
sec(s)


Question # 14 of 15 ( Start time: 03:27:58 PM ) Total Marks: 1
All of the following are the sentiment indicators, EXCEPT:
Select correct option:

Quick Asset Ratio
Odd Lot Short Ratio
Shares Sold Short
Short Interest Ratio








Quiz Start Time: 03:15 PM Time Left 65
sec(s)


Question # 15 of 15 ( Start time: 03:28:25 PM ) Total Marks: 1
In which of the following approaches the capitalization of income is done?
Select correct option:

Present value approach
Multiple of earning approach
Communicative approach
Integrated eclectic approach

FIN630 Current Quiz

Quiz Start Time: 03:15 PM Time Left 53
sec(s)


Question # 1 of 15 ( Start time: 03:15:09 PM ) Total Marks: 1
Which of the following represents the total amount that may be distributed to its shareholders?
Select correct option:

Other income
Net income
Extraordinary income
Operating income








Quiz Start Time: 03:15 PM Time Left 42
sec(s)


Question # 2 of 15 ( Start time: 03:15:55 PM ) Total Marks: 1
Which of the following take place at the pioneering stage of the industry life cycle?
Select correct option:

Firm operations get more stable
Rapid growth in demand occur
Costs get stable rather than decreasing
Sales growth decline as products obsolete








Quiz Start Time: 03:15 PM Time Left 47
sec(s)


Question # 3 of 15 ( Start time: 03:16:51 PM ) Total Marks: 1
When comparing bonds with other investments, which of the following should be used to make a realistic comparison?
Select correct option:

The effective annual yield
The dividend yield
The treasury yield
The percentage yield









Quiz Start Time: 03:15 PM Time Left 29
sec(s)


Question # 4 of 15 ( Start time: 03:17:41 PM ) Total Marks: 1
Which of the following stage offers the highest potential returns and greatest risk?
Select correct option:

Pioneering stage
Expansion stage
Stabilization stage
Decline stage








Quiz Start Time: 03:15 PM Time Left 70
sec(s)


Question # 5 of 15 ( Start time: 03:19:03 PM ) Total Marks: 1
Which of the following invest in undervalued stocks as determined by fundamental financial analysis?
Select correct option:

Growth funds
Value funds
Mutual funds
Hedge funds







Quiz Start Time: 03:15 PM Time Left 62
sec(s)


Question # 6 of 15 ( Start time: 03:20:29 PM ) Total Marks: 1
Which of the following promotes investment education and ethical behavior among those involved in the investment business?
Select correct option:

Securities Investor Protection Corporation (SIPC)
Licensed International Financial Analyst (LIFA)
Chartered Financial Analyst Institute (CFAI)
Securities and Exchange Commission (SEC)







Quiz Start Time: 03:15 PM Time Left 51
sec(s)


Question # 7 of 15 ( Start time: 03:21:21 PM ) Total Marks: 1
The higher the coupon on the bond:
Select correct option:

The lesser is its reinvestment rate risk
The higher is its reinvestment rate risk
The higher is its reinvestment rate of return
The lesser is its reinvestment rate of return






Quiz Start Time: 03:15 PM Time Left 51
sec(s)


Question # 8 of 15 ( Start time: 03:22:45 PM ) Total Marks: 1
In which of the following accounts do investors place funds to be borrowed by finances?
Select correct option:

Instant access savings accounts
Continuous funding system account
Personal finance access accounts
International savings accounts






Quiz Start Time: 03:15 PM Time Left 18
sec(s)


Question # 9 of 15 ( Start time: 03:23:35 PM ) Total Marks: 1
Which of the following rated bonds are not paying interest?
Select correct option:

AAA rated
BBB rated
C rated
D rated








Quiz Start Time: 03:15 PM Time Left 16
sec(s)


Question # 10 of 15 ( Start time: 03:24:53 PM ) Total Marks: 1
All of the following are characteristics of stop orders EXCEPT:
Select correct option:

Protecting profits
Minimizing losses
Rapid execution
It is seldom used by investors





Quiz Start Time: 03:15 PM Time Left 59
sec(s)


Question # 11 of 15 ( Start time: 03:26:17 PM ) Total Marks: 1
Which of the following markets is the market for investment in short-term activities?
Select correct option:

Android market
Capital market
Money market
Target market







Quiz Start Time: 03:15 PM Time Left 59
sec(s)


Question # 12 of 15 ( Start time: 03:26:56 PM ) Total Marks: 1
Which of the following statement is TRUE about yield to maturity?
Select correct option:

Yield to maturity is inversely related to bond price
Yield to maturity is always less than the yield to call
Yield to maturity will be less than the current yield for bonds purchased at a discount
Yield to maturity tends to fall with a rise in duration









Quiz Start Time: 03:15 PM Time Left 68
sec(s)


Question # 13 of 15 ( Start time: 03:27:30 PM ) 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







Quiz Start Time: 03:15 PM Time Left 69
sec(s)


Question # 14 of 15 ( Start time: 03:27:58 PM ) Total Marks: 1
All of the following are the sentiment indicators, EXCEPT:
Select correct option:

Quick Asset Ratio
Odd Lot Short Ratio
Shares Sold Short
Short Interest Ratio








Quiz Start Time: 03:15 PM Time Left 65
sec(s)


Question # 15 of 15 ( Start time: 03:28:25 PM ) Total Marks: 1
In which of the following approaches the capitalization of income is done?
Select correct option:

Present value approach
Multiple of earning approach
Communicative approach
Integrated eclectic approach

GDB # 2 MGT603 - Strategic Management

BCG MATRIX:



The below table illustrates that an organization is composed of four divisions with annual sales ranging from $15,000 to $70,000. Division 2 has the greatest sales volume while on the other hand division 4 has the lowest sales volume.

You have been also given market share and growth rate of each division. By developing the BCG Matrix on your rough paper, you have to only identify which division falls in which quadrant (stars, question marks, cash cows and dogs)?



Division Revenue Profits Market share Growth Rate
1 $50,000 $5,000 0.4 +10
2 $70,000 $11,000 0.8 +15
3 $30,000 $8,500 0.6 -20
4 $15,000 $1,000 0.05 -10
Total $165,000 $25,500
...........
ANSWER

1.Question mark
2. Star
3. Cash cow
4. Dog
Because ,
1-Question mark =(high growth,lowmarket share)
2-Star =(high growth ,high market share)
3-Cash cow =(lower growth, high market share)
4-Dog =(lower growth,lower market share)
..........
Division Revenues Profits Market share Growth Rate
1 $50,000 $5,000 0.4 +10 ? Mark
2 $70,000 $11,000 0.8 +15 Stars
3 $30,000 $8,500 0.6 -20 Cash Cows
4 $15,000 $1,000 0.05 -10 Dogs
Total $165,000 $25,500
............
High growth rate high market share
Stars 2
High growth rate low market share
Question marks 1
low growth rate high market share
cash cows 3
low growth rate low market share
dogs 4
....................
BCG MATRIX: The below table illustrates that an organization is composed of four divisions with annual sales ranging from $15,000 to $70,000. Division 2 has the greatest sales volume while on the other hand division 4 has the lowest sales volume. 

You have been also given market share and growth rate of each division. By developing the BCG Matrix on your rough paper, you have to only identify which division falls in which quadrant (stars, question marks, cash cows and dogs)? 

Division Revenues Profits Market share Growth Rate 1 $50,000 $5,000 0.4 +10 2 $70,000 $11,000 0.8 +15 3 $30,000 $8,500 0.6 -20 4 $15,000 $1,000 0.05 -10 Total $165,000 $25,500
...............

GDB # 2 MGT603 - Strategic Management

BCG MATRIX:



The below table illustrates that an organization is composed of four divisions with annual sales ranging from $15,000 to $70,000. Division 2 has the greatest sales volume while on the other hand division 4 has the lowest sales volume.

You have been also given market share and growth rate of each division. By developing the BCG Matrix on your rough paper, you have to only identify which division falls in which quadrant (stars, question marks, cash cows and dogs)?



Division Revenue Profits Market share Growth Rate
1 $50,000 $5,000 0.4 +10
2 $70,000 $11,000 0.8 +15
3 $30,000 $8,500 0.6 -20
4 $15,000 $1,000 0.05 -10
Total $165,000 $25,500
...........
ANSWER

1.Question mark
2. Star
3. Cash cow
4. Dog
Because ,
1-Question mark =(high growth,lowmarket share)
2-Star =(high growth ,high market share)
3-Cash cow =(lower growth, high market share)
4-Dog =(lower growth,lower market share)
..........
Division Revenues Profits Market share Growth Rate
1 $50,000 $5,000 0.4 +10 ? Mark
2 $70,000 $11,000 0.8 +15 Stars
3 $30,000 $8,500 0.6 -20 Cash Cows
4 $15,000 $1,000 0.05 -10 Dogs
Total $165,000 $25,500
............
High growth rate high market share
Stars 2
High growth rate low market share
Question marks 1
low growth rate high market share
cash cows 3
low growth rate low market share
dogs 4
....................
BCG MATRIX: The below table illustrates that an organization is composed of four divisions with annual sales ranging from $15,000 to $70,000. Division 2 has the greatest sales volume while on the other hand division 4 has the lowest sales volume. 

You have been also given market share and growth rate of each division. By developing the BCG Matrix on your rough paper, you have to only identify which division falls in which quadrant (stars, question marks, cash cows and dogs)? 

Division Revenues Profits Market share Growth Rate 1 $50,000 $5,000 0.4 +10 2 $70,000 $11,000 0.8 +15 3 $30,000 $8,500 0.6 -20 4 $15,000 $1,000 0.05 -10 Total $165,000 $25,500
...............

MGT402 Assignment # 2

Solution Question No. 1 
Part-1 
Delta Corporation 
Income Statement (Under Absorption Costing System) 
For the Quarter Ending ------------- 
(Rupees) 
Sales (20,000 * 30) 600,000 
Less: Cost of Goods Sold 
Opening Stock 0 
Add: Production Cost (15.50 * 24,000) 372,000 
Less: Closing Stock (15.50 * 4,000) (62,000) 310,000
Gross Profit 290,000 
Less: Operating Expenses 
Selling & Administrative Expenses (Fixed) 60,000
Net Profit 230,000 

Working: 
Production Cost (Total) = 80,000+100,000+120,000+72,000 = 372,000 
Per Unit Production Cost = 372,000/24,000 = 15.50 



Part-2Delta Corporation 
Income Statement (Under Direct Costing System) 
For the Quarter Ending ------------- 
(Rupees) 
Sales (20,000 * 30) 600,000 
Less: Variable Cost of Goods Sold 
Opening Stock 0 
Add: Variable Production Cost (12.50 * 24,000) 300,000 
Less: Closing Stock (12.50 * 4,000) (50,000) 250,000 
Gross Profit 350,000 Less: Fixed Expenses 
Factory Over Heads (Fixed) 72,000 
Selling & Administrative (Fixed) 60,000 132,000 
Net Profit 218,000 

Working: 
Total Variable Cost = 80,000+100,000+120,000 = 300,000 
Per Unit Cost (Variable) = 300,000/24,000 = 12.50 
Solution Question No. 2 

Net Profit Calculation (Contribution Margin Approach) 

a) Existing Plan 
(Rupees) 
Sales (100 * 100) 10,000 
Less: Variable Cost (70 * 100) (7,000) 
Contribution Margin 3,000 
Less: Fixed Cost (2,000) 
Net Profit 1,000 



b) New Plan (Increase Sales by 10 Units) 
(Rupees) 
Sales (90 * 110) 9,900 
Less: Variable Cost (70 * 110) (7,700) 
Contribution Margin 2,200 
Less: Fixed Cost (2,350) 
Net Profit / (Loss) (150) 

Working: 
10% of 100 Units = 100 * 10% = 10 
Per Unit Existing Sales Price = 100 
Per Unit Sales Price after 10% Decreased Sales Price = 100 – 10 = 90 

Advice by Management Accountant: 
In this case, the new plan will not be feasible for the company to adopt as if the company adopts the new plan, it will suffer the loss instead of making any profit.