WRONG ANSWER
1.35
First we calculate the number of Shares.
EPS = Income / No. of Shares
1 = 80000 / No. of Shares
So No. of Shares = 80,000
Now we calculate the Market Price of a Share
PE = Market Price / EPS
Market Price = PE X EPS
= 12 x 1 = 12
Book Value = Price / Price to Book Ratio
= 12 / 1.3 = 9.23
Equity (Networth) = Book Value x No. of Shares
= 9.23 x 80,000 = 738400
Asset to Equity Ratio = Asset / Equity
= 1000000 / 738400
= 1.35
All of the above
Sometimes a reseach analyst receives a lot of data which is irrelevant or contradicting. Going through this for getting the right information is a time consuming task and many a times unproductive.
On the other hand, sometimes, there can be a lack of available data which will delay the research work.
Opposite Direction
When interest rates rise, bond holders experience a fall in the price of bonds they hold as these bonds are paying a lower interest as compared to new bonds.
Similarly, when rates fall, the old bonds with high coupon rates would become attractive and their prices would rise.
Rs 2.10
The Dividend Payout Ratio (DPR) is the amount of dividends paid to shareholders in relation to the total amount of net income the company generates. In other words, the dividend payout ratio measures the percentage of net income that is distributed to shareholders in the form of dividends.
First lets find the Earning Per Share (EPS)
PE Ratio = Market Price / EPS
13.50 = 40.50 / EPS
EPS = 40.50 / 13.50 = 3
Dividend Payout Ratio = Dividend Per Share / EPS
70% = Dividend Per Share / 3
70% of 3 = 2.10
So the Dividend Per Share = Rs 2.10
GST is applicable on all goods and services produced in India or imported into India
GST (Goods and Services Tax) in India is a comprehensive indirect tax levied on the supply of goods and services, whether:
So, GST is applicable on:
1. Domestic supply (goods/services made and sold in India)
2. Imports (treated as inter-state supply and taxed via IGST)
Question marks
Question Marks - Business segments in a fast growing market, but having low market share. The right strategies and investments can help the market share of the business grow, but they also run the risk of consuming cash in the process of increasing market share and in the end turning out to be not enough cash generating.
Tata Nano can be considered as an example of a question mark, which did not succeed; whereas, Bajaj Pulsar may be considered as an example of a question mark product which succeeded.