You are on page 1of 3

SOLUTIONS-PANKAJ SEN

Q 4)
base NAV Rs 10
Initial
allowable
expenses in a 6%
close ended
NFO

period opf NFO 5 YEARS

Weekly expenses {.60/260}

NAV 10-{.60/260}
NAV 9.9977

Q 5)
Int rate 9% from Apr-2004/10% from Jun-2005/ 11% from Apr 2006
Balance EMI Int Principal
Jul-04 150000
8% 2003 Aug-04 148,370 2,630 1000 1,630
Sep-04 146,729 2,630 989 1,641
Oct-04 145,077 2,630 978 1,652
Nov-04 143,415 2,630 967 1,663
Dec-04 141,741 2,630 956 1,674
2004 Jan-05 140,056 2,630 945 1,685
Feb-05 138,359 2,630 934 1,696
Mar-05 136,652 2,630 922 1,708
Apr-05 134,933 2,630 911 1,719
9% May-05 133,315 2,630 1012 1,618
Jun-05 131,685 2,630 1000 1,630
Jul-05 130,042 2,630 988 1,642
Aug-05 128,387 2,630 975 1,655
Sep-05 126,720 2,630 963 1,667
Oct-05 125,041 2,630 950 1,680
Nov-05 123,349 2,630 938 1,692
Dec-05 121,644 2,630 925 1,705
2005 Jan-06 119,926 2,630 912 1,718
Feb-06 118,195 2,630 899 1,731
Mar-06 116,452 2,630 886 1,744
Apr-06 114,695 2,630 873 1,757
May-06 112,926 2,630 860 1,770
Jun-06 111,142 2,630 847 1,783
10% Jul-06 109,439 2,630 926 1,704
Aug-06 107,721 2,630 912 1,718
Sep-06 105,988 2,630 898 1,732
Oct-06 104,242 2,630 883 1,747
Nov-06 102,480 2,630 869 1,761
Dec-06 100,704 2,630 854 1,776
2006 Jan-07 98,913 2,630 839 1,791
Feb-07 97,108 2,630 824 1,806
Mar-07 95,287 2,630 809 1,821
Apr-07 93,451 2,630 794 1,836 Int 9173
11% May-07 91,678 2,630 857 1,773 Prin 22,262
Jun-07 89,888 2,630 840 1,790
Jul-07 88,082 2,630 824 1,806
Aug-07 86,259 2,630 807 1,823
Sep-07 84,420 2,630 791 1,839
Oct-07 82,564 2,630 774 1,856
Nov-07 80,691 2,630 757 1,873
Dec-07 78,800 2,630 740 1,890
2007 Jan-08 76,893 2,630 722 1,908
Feb-08 74,968 2,630 705 1,925
Mar-08 73,025 2,630 687 1,943
Apr-08 71,064 2,630 669 1,961
May-08 69,086 2,630 651 1,979
Jun-08 67,089 2,630 633 1,997
Jul-08 65,074 2,630 615 2,015
Aug-08 63,040 2,630 597 2,033
Sep-08 60,988 2,630 578 2,052
Oct-08 58,917 2,630 559 2,071
Nov-08 56,827 2,630 540 2,090
Dec-08 54,718 2,630 521 2,109
2008 Jan-09 52,590 2,630 502 2,128
Feb-09 50,442 2,630 482 2,148
Mar-09 48,274 2,630 462 2,168
Apr-09 46,087 2,630 443 2,187
May-09 43,879 2,630 422 2,208
Jun-09 41,652 2,630 402 2,228
Jul-09 39,403 2,630 382 2,248
Aug-09 37,135 2,630 361 2,269
Sep-09 34,845 2,630 340 2,290
Oct-09 32,534 2,630 319 2,311
Nov-09 30,203 2,630 298 2,332
Dec-09 27,850 2,630 277 2,353
2009 Jan-10 25,475 2,630 255 2,375
Feb-10 23,078 2,630 234 2,396
Mar-10 20,660 2,630 212 2,418
Apr-10 18,219 2,630 189 2,441
May-10 15,756 2,630 167 2,463
Jun-10 13,271 2,630 144 2,486
Jul-10 10,762 2,630 122 2,508
Aug-10 8,231 2,630 99 2,531
Sep-10 5,677 2,630 75 2,555
Oct-10 3,099 2,630 52 2,578
Nov-10 497 2,630 28 2,602
Dec-10 (0) 502 5 497

Q 7)
V=D1/(K-G)
G=Retention Ratio * ROE
Retention Ratio= 1-Divident Payout ratio
Growth Rate= (1-Divident Payout Ratio) * ROE
G=(1-0.3) * 0.2 ie 0.14
Value of Share= 3/(0.16-0.14) 150

Q 8)

Computation of income from house property

Rent from Siliguri house


A Fair Rent 24000
B Municipal Value 25200
C Std Rent 24000
D Actual Rent 22000

E higher of FRV/MV limit to Std Rent 24000

Higher of D and E 24000


less Municipal tax paid on Siliguri house 1150
22850
less Std Deduction u/s 24 6855
less interest paid on housing loan u/s 24 9000
Total Income from house property 6995

Q 14)
Independent projects accept all with positive NPVs or Irrs greater than cost of
capital. NPV somputation is easy--treat cash flows as an annuity.

NPV A N=5 I=12 PMT=5000 FV=0 CPT PV = -18024

NPV A= 18024-15000=Rs. 3024

NPV B N=4 I=12 PMT=7500 FV=0 CPT PV= -22780

NPV B= 22780-20000=Rs. 2780

Q 15)
B Accept the project with the highest NPV

You might also like