RST has net assets of £450,000 and owns 30% of TUV. In the year TUV had reported profits of £40,000 together with shareholder funds of £120,000. When reporting its group results, RST's net assets will increase by A) £12,000 B) £24,000 C) £36,000 D) £48,000 Plant costing £60,000 at VWX is halfway through a 12-year life when it sustains damage. Experts concur that remaining life will be 3 years with value-in-use of £24,000. Following impairment loss, annual depreciation charges will be A) £4,000 B) £6,000 C) £8,000 D) £10,000 Operating profit at GHI was £65,000 this year. Net assets were £324,000 & the company company is ungeared. If current liabilities are £68,000, the Return on Capital Employed will be A) 15% B) 20% C) 23% D) 25% JKL was acquired for cash by MNO when net assets were £120,000. Plant was revalued by £40,000 at the time of acquisition. JKL paid £148,000 to purchase 80% of MNO. The non-controlling (minority) interests were A) £32,000 B) £24,000 시티이미 C) £20,000 £18,000 D) After renovation, STU revalued a warehouse by £120,000. The building's life of 50 years was extended by 12 years following these improvements. Originally costing £500,000 & halfway through its useful life before refurbishment, annual depreciation charges will be A) ABCD £16,750 B) £12,400 £10,000 C) £ 8,000

The firm is contemplating the following (base case): Vehicle acquisition cost                                                     $ 48,000 Years of useful life (economic life)                                      1 Tax rate                                                                             25% Required rate of return on equity                                    11% Required return on debt                                                     6% Debt ratio                                                                          40% Annual revenues                                                         $ 175,000 Operating expenses (excluding depreciation)            $ 115,000   1.Depreciate straight-line over the year of useful life, down to $0 over one year. The maximum dividend is paid at year end. Ignore any working capital effects. Capital charge will be based on the assets at the beginning of each year. What is the WACC?

MNO'S ROCE was 15%. If company gearing was 20%, and net assets were £150,000, calculate shareholder funds. A) 105,000 B) 120,000 125,000 ABCD 135,000 PQR's plant, costing £80,000, was damaged in its 6th year of business use. Plant life is 10 years. Engineers reckon residual plant life to be 3 years with value-in-use of £30,000. The plant could be scrapped now for £10,000. Calculate the asset impairment. 시리이이 25,000 20,000 15,000 10,000 HIJ acquired all shares and half of the loan stock in KLM whose net assets were revalued by £120,000 from £340,000 at the time. Goodwill arising was £24,000, and leverage in KLM was 25%. Calculate the investment in KLM in HIJ's books. A) 298,000 316,000 392,000 436,000 YZA's quick asset ratio is half the current ratio. Current assets excluding inventory were £60,000. Calculate the inventory amount in current assets. A) 시이이이 25,000 30,000 45,000 60,000

The firm is contemplating the following (base case): Vehicle acquisition cost                                                     $ 48,000 Years of useful life (economic life)                                      1 Tax rate                                                                             25% Required rate of return on equity                                    11% Required return on debt                                                     6% Debt ratio                                                                          40% Annual revenues                                                         $ 175,000 Operating expenses (excluding depreciation)            $ 115,000   1.Depreciate straight-line over the year of useful life, down to $0 over one year. The maximum dividend is paid at year end. Ignore any working capital effects. Capital charge will be based on the assets at the beginning of each year. What's the times-interest-earned?