ACC501 Current Final Term Paper 18 July 2011

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1. What components return rates normally have.(3)
2. What are the recommendation if policies are flexible with regard to correct assets.(3)
3. The bonds with lower coupon have greater internal risk. Explain(3)
4. What does static theory of capital structure state(3)
5. Difference between dividend payout ratio and retention ratio.(5)
6. Calculate the disbursement float, collection float and net float.(5)
7. Sales 50,000/year@5.50/unit
Variable cost 4.50/unit. Fixed cost Rs.8000
Project has no salvage value. Project life is 3 years.
Project cost is 24,000. Depreciation is 8000/year
Investment in net working capital is 10,000
The firm required rate of return is 20%
The tax rate is 34%
Required: calculate the projected net income (5)
8. What is net working capital? What are current assets and order of their liquidity?
Total questions are 64. 56mcqs and 8 long questions.