ACC501 Current Final Term Fall 2013 Shared by + ๑Ʈąɲɨą ǰƹƹƹ ƒ ๑۩ ,¸¸,ø

My today’s paper of Acc501
Q no. 1:ABC corporation has a taxable income of Rs. 380,000 and average tab rate is 32.8%. What will be the total tax for the corporation? (Marks 3)
Q no.2: Define variance. What it tell regarding return? (Marks 3)
Q no 3: What is the weighted average cost of capital (WACC)? For what purpose, it is used by the firm? (Marks 3)
Q no.4: What will be cost(r) of giving up cash discount under the credit terms of 110 net 60? (Marks 3)
Q no. 5: Define the term “Bankruptcy”. What are different types of bankruptcy costs? (Marks 5)
Q no. 6: Ali owns the shares of beech wood Inc, which have the following expected return during the various possible states of the economy.
         State of economy           Profitability of                             Rate or return of
                                                State economy                                   state occur
              Boom                           0.30                                                   22%
             Normal                         0.65                                                   12%
            Recession                      0.05                                                  -10%
What would be the expected return on these stocks? (Marks 5)
Q no.7: Calculate the debt- equity ratio?
        Return on equity                                     14%
        Profit margin                                          15.66%
        Total asset turnover                                 0.58            (Marks 5)
Q no 8: What are the components of credit policy? Discuss and support your answer with an example? (Marks 5)