Assume that you have issued bonds at Rs.

1,005 for 5 years with a coupon of 10% pa to be

redeemed at Rs. 1,000. what is the cost of these borrowed funds? If tax rate is 30%, then what is
the after tax cost of this debt?

PAY1 2000 -500

PAY2 2001 0

PAY3 2002 0

PAY4 2003 0

1000

14.870%
pon of 10% pa to be
x rate is 30%, then what is
 Weekly Return (%) Determine the Beta and if th
State Bank Of India B S E Sensex Associated Cement Cos. Ltd. then determine the

7.44 2 1.46

-2.22 -1.98 3.96

3.48 -1.27 -0.52

-3.62 -3.06 -3.51

4.29 -3.16 -5.1

14.27 12.27 21.88

13.16 9.38 16.22

-3.38 0.82 -2.03

2.06 -0.17 0.28

-1.21 -2.15 -0.97

-2.96 -2.14 -1.67

-1.37 -0.04 -1.56

-1.49 -3.13 1.73

2.92 3.39 7.5

8.62 2.29 5.26

4.07 1.27 -2.5

10.98 7.18 2.56

2.01 0.73 0.5

-7.64 0.54 -2.74

-4.18 -2.41 -0.51

5.48 2.75 -0.9

-4.31 -2.28 -2.14

3.4 0.42 -0.54

8.9 3.79 1.91

1.63 4.74 12.55

-4.18 -3.07 -6.51

0.76 -2.86 -3.99

1.83 -2.77 -5.55

0.74 -3.92 0.71

3.57 3.05 -7.02

-10.14 -5.64 -5.64

-0.43 -1.36 0.86

1.22 -0.4 5.73

-1.2 1.44 1.3

1.68 2.42 2.79

3.04 -0.19 -1.18

-6.7 -4.58 -7.42

0.77 -0.02 -5.65

-4.46 -2.75 -5.3

-9.15 -4.71 -4.84

-6.46 1.91 2.68

2.34 -0.96 -9.74

5.14 3.85 -0.64

-1.2 -3.14 -2.38

-6.38 -2.6 -4.97

4.47 2.36 -3.02

-2.59 -5.52 -19.42

0.81 -2.53 -10.47

-3.78 -2.22 -4.46

-0.6 1.58 5.48

9.22 8.88 17.24

-0.66 -0.8 0.46

7.73 5.8 9.3

3.89 4.73 0.08

9.66 0.12 9.24

-2.61 0.39 -6.28

0.28 -1.55 -4.33

-0.55 0.73 1.22

6.39 3.37 9.72

-1.39 -2.34 2.08

6.97 6.18 8.09

4.79 6.14 13.01

-3.94 -3.37 -5.49

2.79 -0.4 -4.28

-3.35 -1.79 -7.92

-10.4 -3.09 -7.02

2.21 2.35 1.3

6.76 1.73 -0.25

6.24 3.49 4.03

-1.59 -0.62 -0.64

-0.97 -0.85 -11.1

-0.9 -0.26 -7.87

-1.23 -1.42 -5.06

2.16 1.31 -3.22

2.2 2.17 4.42

1.59 5.05 7.35

7.38 1.32 0.58

0 1.23 14.69

2.34 4.61 8.78

0 -0.04 0.96

-7.14 -4.56 -4.42

-1.69 1.58 1.87

0.16 3.76 2.1

1.72 1.16 0.16

-1.31 -1.74 2.96

-2.88 -6.32 -8.63

-8.65 -4.24 -9.18

3.68 4.03 0.48

-3.05 -0.9 -3.31

-4.71 -4.27 -3.23

1.83 2.62 -0.49

-5.04 -1.97 -4.38

6.44 5.45 2.91

2.14 1.2 11.52

-5.4 -3.62 -9.96

1.38 -0.58 0.79

-5.9 -4.75 -2.44

-5.7 -4.74 0.13

-0.51 -1.3 0.38

-9.46 1.05 2.59

-3.75 -2.56 -1.31

0 -4.03 3.98
6.26 6.36 3.16

6.67 2.61 8.07

4.06 2.38 0.04

-6.21 -5.1 -8.11

5.66 -4.19 -1.17

-1.21 -0.92 4.03

-2.35 -3.79 -2.85

1.57 4.41 0.43

-0.49 0.2 -2.78

0.04 1.3 -0.64

6.46 6 17.5

6.03 2.38 0.6

-0.04 0.21 -7.91

1.84 3.33 5.56

1.91 1.78 3.02

3.93 4.28 9.23

2.45 1.04 -4.47

-1.16 1.66 -0.44

-0.77 -3.24 1.77

-2.44 -1.09 0.74

-3.89 0.38 7.04

-8.92 -4.29 2.15

1.35 1.23 5.02

-5.28 -5.41 -6.49

-18.1 -7.28 -9.61

2.42 -2.06 -19.36

-0.99 -6.1 -4.56

3.48 0.82 3.68

-4.66 -2.52 -4.79

16.24 10.12 17.11

-5.68 2.03 3.31

-7.08 -8.63 -11.22

4.01 1.26 4.5

-4.33 -4.64 -2.99

-4.63 -3.05 -10.57

-4.54 -1.55 -2.65

-1.09 -0.5 -4.69

4.25 2.3 0.43

5.19 3.65 3.42

-1.16 0.23 7.02

7.54 4.3 0.13

-5.12 -3.76 -5.65

-16.88 -5.98 -9.03

-5.65 -2.35 -6.36

-0.64 -2.23 -11.67

-0.26 1.01 11.63

-0.26 2.56 2.99

3.99 3.18 4.31

-0.5 -1.17 3.49

-6.1 -5.38 -12.87

1.86 2.4 -5.93

2.86 5.36 3.28

 -5 -4.24 2.43

0.93 3.07 7.08

4.03 3.27 6.46

16.43 11.03 17.48

-7.03 -5.59 -6.72

0.23 2.81 0.52

-3.04 0.54 -1.93

-8.32 -3.02 -8.3

1.97 3.8 8.22

-0.13 0.52 4.23

-4.91 -3.61 -2.79

31.05 12.84 11.85

14.72 1.47 4.79

2.67 -0.82 -3.87

-9.24 -2.04 5.99

-0.1 2.47 13.28

-17.23 -6.65 -1.28

1.23 3.83 0.26

-7.3 -4.66 3.83

-3 -2.37 -6.79

29.51 11.49 12.49

14.3 9.92 24.16

14.91 -1.47 -7.45

-14.58 -6.04 -5.95

13.44 7.13 10.85

-2.46 -1.81 -1.83

3.11 3.54 -2.97

-7.29 0.05 -3.9

6.04 2.01 -2.03

9.12 4.01 16.09

1.1 6.35 18.4

-1.33 0.69 -5.73

-9.44 -2.78 -5.94

-3.26 0.73 12.14

-1.24 -1.91 -2.99

5.09 3.52 4.19

-4.26 4.84 10.06

-5.42 -3.3 -9.49

1.03 1.07 -2.73

-5.41 -2.98 -2.32

-1.31 3.02 -7.24

1.31 -1.17 -0.73

17.3 5.94 7.17

-1.86 -1.96 4.54

5.5 -2.07 10.53

-4.25 -7.08 -20.44

-5.28 3.46 -0.57

-0.38 0.68 3.39

-0.21 -0.98 -8.78

0.21 2.64 5.74

4.83 0.19 -3.17

-3.02 1.58 23.64

-5.36 -2.35 -2.44

0.38 4.25 22.42

-0.55 2.69 -12.66

24.09 8.3 -3.73

-14.41 0.92 -10.15

-1.51 -0.88 -5.47

5.19 -1.61 -4.93

1.9 -0.42 -2.98

-1.75 11.67 6.27

-2.83 -3.57 -12.51

-1.91 -1.72 -6.26

-11.78 -4.35 -16.33

-17.87 -1.42 -3.81

16.58 -3.76 -2.55

-0.33 1.37 4.45

1.21 -2.73 5.01

7.41 4.36 19.02

-4.63 -0.9 -13.08

-0.21 -9.95 -0.96

1.53 0 -3.37

-2.84 0.78 -10.72

-6.62 -12.5 -9.27

-0.53 -0.94 -5.68

1.08 0.39 18.17

7.98 9.03 -11.79

9.43 6.2 6.28

6.41 0.74 4.29

0 -0.9 -4.69

-4.25 0.57 1.68

2.47 3.31 9.75

-3.38 -1 3.51

-3.21 -8.1 -9.44

-6.64 -4.19 -12.24

-0.59 -1.62 7.65

-1.04 -0.37 5.23

-1.23 3.7 -5.55

0.81 1.61 6.89

-0.3 1.37 2.22

8.02 4.27 -7.39

-6.74 -2.27 -5.51

-8.66 -11.62 -9.96

-2.69 1.44 -5.96

-3.93 0.65 -1.19

-3.06 -8.64 -6.8

-3.09 -1.24 8

-0.97 0.98 0.87

8.88 5.54 7.94

-2.83 0.14 -8.98

0.06 -0.9 11.59

0.24 -0.96 11.8

11.15 4.23 14.55

4.55 3.08 7.77

-3.03 -0.46 4.52

-1.37 -5.59 -3.59

2.42 1.7 1.08

11.95 5.33 2.92

2.55 -3.52 -5.47

-0.52 3.91 4.75

6.21 3.24 7.1

0.47 0.51 9.05

9.02 1.04 2.48

-8.51 -1.52 -4.98

-5.6 -4.81 -2.25

21.13 -0.65 6.72

-4.28 -5.21 -11.76

-9 -3.51 1.92

-5.84 -2.95 -14.29

-8.71 -0.85 -12.42

-0.65 -0.79 2

1.66 -10.97 -4.19

6.11 12.54 15.92

-2.91 -4.47 -8.26

8.83 2.68 3.71

5.71 1.29 -3.4

-1.46 2.68 6.22

-5.52 0.13 -4.67

-3.29 -2.79 1.24

3.89 -1.74 0.69

-6.11 -3.52 -4.77

7.03 0.26 -2.15

-2.22 2.22 4.92

3.92 -4.37 -1.39

0.2 4.48 4.01

-5.91 -3.28 -0.25

-0.64 -2.67 -1.54

-0.98 2.27 4.15

-2.1 -0.28 1.85

0.37 -0.59 -2.37

-2.01 0.27 -4.04

-0.78 -1.83 -6.3

-4.66 -1.43 0.63

-7.91 -11.51 -14.49

-19.27 -8.13 -7.58

17.29 8.13 22.36

6.61 0.05 -3.69

4.13 5.21 4.21

1.12 1.94 1.36

1.38 0.18 7.38

3.44 1.01 2.68

3.07 0.89 5.23

0.22 3.27 -0.65

0.52 2.26 9.45

3.47 1.09 6.79

-4.2 4.53 -2.49

-12.09 -2.41 -4.57

2.25 -3.52 -5.51

-2.67 -1.58 -4

15.97 6.01 17.46

-1.48 -0.38 -2.3

9.87 1.99 4.08

-5.17 -1.33 -4.85

1.75 0.05 0.89

17.43 4.8 1.82

-0.14 3.09 2.53

-2.72 0.06 -7.86

-3.64 2.07 11.02

-0.67 -0.6 -7

0.97 -1.97 -2.5

-4.44 -2.81 -5.69

-1.44 -1.33 2.09

5.91 -0.33 -0.97

4.38 0.3 -1.48

-1.98 -4.17 1.17

-0.65 0.22 0

-3.36 0.26 -0.03

0.59 1.5 6.78

-4.24 -2.84 -3.18

1.16 -2.34 -1.27

-1.3 -3.99 -2.45

3.77 2.94 1.92

ine the Beta and if the risk free rate is 7.5%,
then determine the cost of capital.
 Exercise on ABC Analysis
M/S Premji Lal buys eight items for its mulit-product plant. Mr. Ramji Lal is looking after
their stores. He has been instructed to classify the following items on the basis of ABC
Analysis.

Item Number Price per unit (P) Quantity demanded(Q) Value of Items (PxQ)

4001 Rs.1,500 500 Rs.750,000

7001 Rs.500 1,000 Rs.500,000

6001 Rs.25 6,000 Rs.150,000

3001 Rs.200 600 Rs.120,000

5001 Rs.12 8,000 Rs.96,000

8001 Rs.35 2,000 Rs.70,000

1001 Rs.20 3,000 Rs.60,000

2001 Rs.2 10,000 Rs.20,000

You are required to help in the classification and determine which items should fall in which
category.
Value of Items % of Cumulative
Item Number Cumulative Value
(PxQ) Value

4001 Rs.750,000 Rs.750,000 42.47

7001 Rs.500,000 Rs.1,250,000 70.78

6001 Rs.150,000 Rs.1,400,000 79.28

3001 Rs.120,000 Rs.1,520,000 86.07

5001 Rs.96,000 Rs.1,616,000 91.51

8001 Rs.70,000 Rs.1,686,000 95.47

1001 Rs.60,000 Rs.1,746,000 98.87

2001 Rs.20,000 Rs.1,766,000 100.00

Make a chart to decide which items are to be classified into ABC Categories.

120.00
120.00

100.00

80.00

60.00

Column D

40.00

20.00

0.00
0

00
.5

.0

.5

.0

.5

.0

.5

0.
75

87
12

25

37

50

62

10
ch items should fall in which

% of Cumulative
Items

12.50

25.00

37.50

50.00

62.50

75.00

87.50

100.00

nto ABC Categories.

 0
87
.5
0
10
0.
00

Column D
 Exercise on EOQ Model

A firm is purchasing some item from a vendor at a cost of Rs. 20 each. It is estimated that the next year dem
be 1000 units. Every time the firm places and receives an order, it costs Rs. 5 per order. The storage cost has
the price.

MODEL
Ordering Cost Per Order 6

Storage Cost or Carrying Cost 25%

Price 20

Demand per annum 1100

EOQ = 51.3809303146605

DO SENSITIVITY ANALYSIS.

MAKE THREE SCENARIOS - BEST WORST AND MOST LIKELY

MAKE A TABLE FOR DIFFERENT ORDING COST AND CARRYING

COST
estimated that the next year demand for the item would
per order. The storage cost has been worked as 20% of
Sum of AMOUNT
DATE ITEM NO. RATE DISCOUNT Total
4-Aug-10 133P Rs. 83.00 14% 57104
Grand Total 57104
 DEBTORS DATA BASE : DO NECESSARY ANALYSIS, MAKE PIV
DATE NAME OF CUSTOMERS ITEM NO. SOLD
1-Aug-10 M/S SUSHIL KUMAR AND SONS 125A

2-Aug-10 M/S K. K. & COMPANY 120D

2-Aug-10 M/S SHANTI AND PRASAD SONS 120X

2-Aug-10 AOK LIMITED 122B

3-Aug-10 PTR COLOR PVT LIMITED 126Y

3-Aug-10 M/S SUSHIL KUMAR AND SONS 126B

4-Aug-10 AOK LIMITED 133P

4-Aug-10 AOK LIMITED 125E

5-Aug-10 PTR COLOR PVT LIMITED 130J

6-Aug-10 M/S K. K. & COMPANY 122XX

6-Aug-10 M/S SUSHIL KUMAR AND SONS 125A

7-Aug-10 M/S SHANTI AND PRASAD SONS 126B

9-Aug-10 M/S G. P. GOYAL CONSTRUCTION COMPANY 127A

10-Aug-10 M/S ARCITRON PVT LIMITED 120X

11-Aug-10 RAINBOW PVT LIMITED, PANIPAT 130J

12-Aug-10 PTR COLOR PVT LIMITED 122B

12-Aug-10 M/S AMBICA BROS. 112A

13-Aug-10 M/S P D GUPTA AND SONS, KARNAL 125E

13-Aug-10 M/S SUSHIL KUMAR AND SONS 127A

14-Aug-10 PEARL TRADING PVT LIMITED, JAIPUR 120D

16-Aug-10 RAINBOW PVT LIMITED, PANIPAT 112A

16-Aug-10 PEARL TRADING PVT LIMITED, JAIPUR 120D

16-Aug-10 M/S AMBICA BROS. 120D

17-Aug-10 RAINBOW PVT LIMITED, PANIPAT 112A

18-Aug-10 M/S SUSHIL KUMAR AND SONS 127A

18-Aug-10 M/S P D GUPTA AND SONS, KARNAL 122XX

18-Aug-10 M/S ARCITRON PVT LIMITED 120D

18-Aug-10 PEARL TRADING PVT LIMITED, JAIPUR 120D

21-Aug-10 RAINBOW PVT LIMITED, PANIPAT 122XX

21-Aug-10 M/S SUSHIL KUMAR AND SONS 120D

21-Aug-10 PEARL TRADING PVT LIMITED, JAIPUR 112A

21-Aug-10 M/S SHYAM SUNDER AND ASSOCIATES 125A

21-Aug-10 M/S ARCITRON PVT LIMITED 120D

22-Aug-10 M/S SHYAM SUNDER AND ASSOCIATES 112A

22-Aug-10 M/S SUSHIL KUMAR AND SONS 120C

22-Aug-10 M/S SHYAM SUNDER AND ASSOCIATES 112A

22-Aug-10 M/S ARCITRON PVT LIMITED 125A

22-Aug-10 PEARL TRADING PVT LIMITED, JAIPUR 112A

22-Aug-10 RAINBOW PVT LIMITED, PANIPAT 125A

22-Aug-10 M/S G. P. GOYAL CONSTRUCTION COMPANY 122XX

22-Aug-10 M/S AMBICA BROS. 120C

22-Aug-10 M/S P D GUPTA AND SONS, KARNAL 120D

23-Aug-10 RAINBOW PVT LIMITED, PANIPAT 120C

24-Aug-10 M/S P D GUPTA AND SONS, KARNAL 120X

25-Aug-10 M/S G. P. GOYAL CONSTRUCTION COMPANY 120C

26-Aug-10 M/S SUSHIL KUMAR AND SONS 125A

27-Aug-10 RAINBOW PVT LIMITED, PANIPAT 120C

28-Aug-10 M/S AMBICA BROS. 120X

29-Aug-10 M/S G. P. GOYAL CONSTRUCTION COMPANY 112A

31-Aug-10 M/S K. K. & COMPANY 112A

ECESSARY ANALYSIS, MAKE PIVOTAL TABLE
RATE QUANTITY SOLD DISCOUNT AMOUNT
Rs. 50.00 500 20% Rs. 20,000.00

Rs. 85.00 400 20% Rs. 27,200.00

Rs. 95.00 200 15% Rs. 16,150.00

Rs. 75.00 300 20% Rs. 18,000.00

Rs. 50.00 700 15% Rs. 29,750.00

Rs. 60.00 500 18% Rs. 24,600.00

Rs. 83.00 800 14% Rs. 57,104.00

Rs. 25.00 55 12% Rs. 1,210.00

Rs. 90.00 250 10% Rs. 20,250.00

Rs. 12.00 350 35% Rs. 2,730.00

Rs. 50.00 640 25% Rs. 24,000.00

Rs. 60.00 525 10% Rs. 28,350.00

Rs. 85.00 700 20% Rs. 47,600.00

Rs. 95.00 900 25% Rs. 64,125.00

Rs. 90.00 125 25% Rs. 8,437.50

Rs. 75.00 135 10% Rs. 9,112.50

Rs. 60.00 140 10% Rs. 7,560.00

Rs. 25.00 260 25% Rs. 4,875.00

Rs. 85.00 278 30% Rs. 16,541.00

Rs. 85.00 122 10% Rs. 9,333.00

Rs. 60.00 80 10% Rs. 4,320.00

Rs. 85.00 75 20% Rs. 5,100.00

Rs. 85.00 96 25% Rs. 6,120.00

Rs. 60.00 88 25% Rs. 3,960.00

Rs. 85.00 156 20% Rs. 10,608.00

Rs. 12.00 365 15% Rs. 3,723.00

Rs. 85.00 325 20% Rs. 22,100.00

Rs. 85.00 450 15% Rs. 32,512.50

Rs. 12.00 560 18% Rs. 5,510.40

Rs. 85.00 459 12% Rs. 34,333.20

Rs. 60.00 444 10% Rs. 23,976.00

Rs. 50.00 770 5% Rs. 36,575.00

Rs. 85.00 963 15% Rs. 69,576.75

Rs. 60.00 785 12% Rs. 41,448.00

Rs. 85.00 652 15% Rs. 47,107.00

Rs. 60.00 390 10% Rs. 21,060.00

Rs. 50.00 553 10% Rs. 24,885.00

Rs. 60.00 625 10% Rs. 33,750.00

Rs. 50.00 653 15% Rs. 27,752.50

Rs. 12.00 451 20% Rs. 4,329.60

Rs. 85.00 335 18% Rs. 23,349.50

Rs. 88.00 45 9% Rs. 3,603.60

Rs. 85.00 239 10% Rs. 18,283.50

Rs. 95.00 56 5% Rs. 5,054.00

Rs. 85.00 48 5% Rs. 3,876.00

Rs. 50.00 145 15% Rs. 6,162.50

Rs. 85.00 890 15% Rs. 64,302.50

Rs. 95.00 750 20% Rs. 57,000.00

Rs. 60.00 825 18% Rs. 40,590.00

Rs. 60.00 950 25% Rs. 42,750.00