ENT332 SEPTEMBER/OCTOBER 2015 Examination

National Open University of Nigeria

14-16 Ahmadu Bello Way, Victoria Island Lagos 

School of Management Science

SEPTEMBER/OCTOBER 2015 Examination

    ^{COURSE CODE: ENT332}

                  ^{COURSE TITTLE: INVESMENT MANAGEMENT ANALYSIS II}

                  ^{TIME ALLOWED: 2hrs}

                   ^{Instructions: ANSWER QUESTION 1 AND ANY OTHER 2 QUESTIONS}

                                               ^{Q1 ISCOMPULSORY AND CARRIES 30MARKS WHILE OTHER 2 CARIIES 20MARKS EACH}

                                               ^{PRESENT ALL YOUR POINTS IN COHERENT AND ORDERLY MANNER}

1a.

Good mayor’s Income Statement Opening and closing Balance Sheets For 201,2002,2003

Income statements Sales Revenue Cost of goods sold (with depreciation) Depreciation Selling and administrative expenses Operating Expenses Interest expense Taxable income Income tax (40% rate) Net income Balance sheet (end of year) Cash and marketable securities Accounts receivable Inventories Net plant and equipment Total assets Account payable Short-term debt Long-term debt (8% bonds maturing in 2007) Total Liabilities Shareholders’ equity (1 million shares outstanding) Other data Market Price per common stock At the end of the year	2000	2001	2002	2003
	50,000 25,000 75,000 150,000	100,000 55,000 15,000 15,000 30,000 10,500 19,500 7,800 11,700	N120,000 66,000 18,000 18,000 36,000 10,005 16,905 6,762 10,143	N144,000 79,200 21,00 21,600 43,200 34,391 8,809 3,524 5,285
		60,000 30,000 90,000 180,000	72,000 36,000 108,000 216,000	82,400 43,200 129,600 259,200
	300,000 30,000 45,000 75,000 150,000 150,000	360,000	432,000	518,400
		36,000 87,300 75,000 198,300 161,700 93.60	43,200 141,957 75,000 260,157 171,843 61.00	51,840 214,432 75,000 341,272 177,128 21.00

Using the Above Information in the Table above, calculate the following financial ratios

i. Fixed Assets Turnover

ii. Current Ratio

iii. Total Assets Turnover

iv. Quick Ratio

v. Return on Equity

vi. Return on Assets

vii.Net Profit Margin

viii.Debt /Equity Ration 

 

ix.Return on investment

x.Total  debts to assets Ratio

b. List 6 items that should be included in the short-term financial plan of a company?

c. What are the objective of financial reporting 

2a.Why do bond prices respond to interest rate fluctuations?

b. what is a fixed-income capital market

c.Explain what you understand by money market ?

3a. What is the objective of common stock evaluation ?

b. List 4 components of a financial report

4a. explain 4 types of risks inherent in bank investment ?

b. Discuss 4 types of instrument traded in the money market?

5a. Discuss Modern approach to working capital funding ?

b. Discuss the five determinants of ratios used to evaluate bond safety known you

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