7/30/2019 Ssf (EVA) Pg.34-37

1/6

Less: Tax (30%)

PAT

EPS [238 Lakh/10 Lakh]

P/E ratio

102

238

Rs. 23.8

3

Balance Sheet

Liabilities Rs. Assets Rs.

Equity Capital (Rs. 10 shares)

General Reserves

Debt

Creditors

Provisions

TOTAL

100

80

120

30

26

356

Building

Plant & Machinery

Stock

Receivables

Bank

TOTAL

160

140

20

24

12

356

The cost of equity and cost of debt is 12% and 15% respectively. The company pays 30%

corporate tax.

From the information given you are required to calculate the EVA. Also, calculate MVA on the

basis of Market Value of equity capital.

3) The Income Statement and Balance Sheet of Atlas Co. Ltd. is as follows:

Income Statement

Particulars Rs.(in

Lakh)

Rs.(in

Lakh)

Sales

Interest on investments

Profits on sale of old assets

Total Income

Less:

Manufacturing cost

3,000

60

30

1,080

515

7/30/2019 Ssf (EVA) Pg.34-37

2/6

Balance Sheet

The cost of equity and cost of debt is 14% and 18% respectively. The company pays 30%

corporate tax.

From the information given you are required to calculate the EVA. Also, calculate MVA on the

basis of Market Value of equity capital.

4) Income Statement and Balance Navratna Co. Ltd. is as follows:

Administration cost

Selling and distribution cost

Depreciation

Loss on sale of an old Machinery & Equipments

EBIT

Less: Interest

EBT

Less: Tax (30%)

PAT

EPS [714 Lakh/30 Lakh]

P/E ratio

360

300

180

30 1,950

1,140

120

1,020

306

714

Rs. 23.8

1.2

Liabilities Rs. Assets Rs.

Equity capital (Rs. 10 share)

Reserves and Surplus

Long term debt

Creditors

Provision

TOTAL

300

240

360

90

78

1,068

Building

Machinery & Equipments

Inventories

Debtors

Bank

TOTAL

480

420

60

72

36

1,068

7/30/2019 Ssf (EVA) Pg.34-37

3/6

Income Statement

Particulars Rs.(in

Lakh)

Rs.(in

Lakh)

Sales

Interest on investments

Profits on sale of old assets

Total Income

Less:

Manufacturing cost

Administration cost

Selling and distribution cost

Depreciation

Loss on sale of an old Building

EBIT

Less: Interest

EBT

Less: Tax (30%)

PAT

EPS [714 Lakh/30 Lakh]

P/E ratio

2,500

50

25

900

300

250

150

25

2,575

1,625

950

100

850

255

595

Rs. 23.8

4.25

7/30/2019 Ssf (EVA) Pg.34-37

4/6

Balance Sheet

The cost of equity and cost of debt is 15% and 11% respectively. The company pays 30%

corporate tax.

From the information given you are required to calculate the EVA. Also, calculate MVA on the

basis of Market Value of equity capital.

5) Fill In The Blanks:

The following data pertains to three divisions of Sona Chandi Company Ltd. The

companys required rate of return on invested capital is 8%.

Particulars Division A Division B Division C

Sales Value (Rs.)

Income (Rs.)

Average Investment (Rs.)

Sales Margin (%)

Capital Turnover (Times)

ROI (%)

Residual Income (EVA) (Rs.)

8 Lacs

20%

2

2 crore

40 Lacs

50 Lacs

25%

20%

2,40,000

HINT: Economic Valued Added (EAV) = Net IncomeCOC

Liabilities Rs. Assets Rs.

Equity capital (Rs. 10 share)

Reserves and Surplus

Long term borrowings

Creditors

Provision

TOTAL

250

200

300

75

65

890

Land & Building

Machinery

Stock

Debtors

Cash & Bank

TOTAL

400

350

50

60

30

890

7/30/2019 Ssf (EVA) Pg.34-37

5/6

6) Fill In The Blanks:

The following data pertains to three divisions of Jeevan Akshay Company Ltd. The

companys required rate of return on invested capital is 8%.

Particulars Division A Division B Division C

Sales Value (Rs.)

Income (Rs.)

Average Investment (Rs.)

Sales Margin (%)

Capital Turnover (Times)

ROI (%)

Residual Income (EVA) (Rs.)

16 Lacs

20%

2

4 crore

80 Lacs

100 Lacs

25%

20%

4,80,000

7) Fill In The Blanks:

The following data pertains to three divisions of Jeevan Suraksha Company Ltd. The

companys required rate of return on invested capital is 8%.

Particulars Division A Division B Division C

Sales Value (Rs.)

Income (Rs.)

Average Investment (Rs.)

Sales Margin (%)

Capital Turnover (Times)

ROI (%)

Residual Income (EVA) (Rs.)

32 Lacs

20%

2

8 crore

160 Lacs

200 Lacs

25%

20%

9,60,000

7/30/2019 Ssf (EVA) Pg.34-37

6/6

8) Fill In The Blanks:

The following data pertains to three divisions of Jeevan Saathi Company Ltd. The

companys required rate of return on invested capital is 8%.

Particulars Division A Division B Division C

Sales Value (Rs.)

Income (Rs.)

Average Investment (Rs.)

Sales Margin (%)

Capital Turnover (Times)

ROI (%)

Residual Income (EVA) (Rs.)

48 Lacs

20%

2

12 crore

240 Lacs

300 Lacs

25%

20%

14,40,000

9) Fill In The Blanks:

The following data pertains to three divisions of Milan Company Ltd. The companys

required rate of return on invested capital is 8%.

Particulars Division A Division B Division C

Sales Value (Rs.)

Income (Rs.)

Average Investment (Rs.)

Sales Margin (%)

Capital Turnover (Times)

ROI (%)

Residual Income (EVA) (Rs.)

56 Lacs

20%

2

14 crore

280 Lacs

350 Lacs

25%

20%

16,80,000