Read the following information carefully and answer the question. A Limited took over assets of ₹3,00,000 and liabilities of ₹10,000 from X and Co. Ltd. for an agreed purchase consideration of ₹2,70,000 to be satisfied by the issue of 10% debentures of ₹100 each at a premium of 20%. The company also took a loan of ₹10,00,000 from Punjab National Bank and issued 10% debentures of ₹12,00,000 of ₹100 each as collateral security. The rate of interest on the loan is 12% per annum.
Calculate the amount of fixed obligation of the company.
₹1,42,500
Fixed obligations include interest on debentures and preference shares. The total obligation is calculated based on 10% debentures and 12% preference shares.
Fixed obligation = (10% of ₹4,00,000) + (12% of ₹1,00,000) = ₹40,000 + ₹12,000 = ₹1,42,500.
Important Questions from Accounting Ratios
The return on investment will be:
Earning Per Share (EPS) will be:
The Price Earning (P/E) ratio will be:
Gross Profit Ratio of a company was 25%. If credit revenue from operation was ₹20,00,000 and cash revenue from operation is 20% of total revenue. If indirect expense of the company was ₹50,000. Calculate Net Profit Ratio?
Identify the ratio, that represent one of the activity ratios.
