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Saturday 24 October 2015

IBF


1)      Advantages of Eurobonds to borrowers & investors

2)      Asian crisis 1997& role of CRAB

3)      Balance sheet of bank

4)      Bretton wood system

5)      Components of BOP

6)      Determinants of foreign exchange rates

7)      ECCB

8)      Eurobonds v/s Euro credit

9)      Evaluation & factors responsible for growth of EURO Currency markets

10)   Exim bank facilities

11)   Factors considered for reforms in international foreign architecture

12)   FDI v/s FPI

13)   Features of international banking

14)   Features, parties, steps, advantages & disadvantages of GDR

15)   Functional overview of international banking

16)   Gold card scheme approved by RBI

17)   Gold specie standard

18)   Gold standard system

19)   Important events in international banking

20)   NRF V/s NRO

21)   Parties, benefits, types, stages in loan syndication/ international lending

22)   Payment terms adopted in foreign trade/ instruments involved in international payment system

23)   Post shipment export credit

24)   PPP Theory

25)   Pre shipment export credit

26)   Process, parties,types & benefits of letter of credit

27)   Role of central banks

28)   Schemes of ECGC

29)   Short term debt instruments

30)   SWIFT

31)   Types of country risks

32)   Types of depository receipts facilities

33)   Types of foreign exchange risks

34)   Types of guarantee for project exports

35)   Types, advantages, disadvantages of offshore banking

Wednesday 7 October 2015

TIPS TO IMPROVE YOUR MEMORY


TIPS TO IMPROVE  YOUR MEMORY

1.   Take tests - Why do we push things into memory. Because, we would like to recall it when the need arises. How do you know you will be able to recall when you need it? Simple, Take tests periodically and makes repeated attempts in recalling. Regular recall improves memory.

2.   Take breaks - If you have 3.5 hours to read, break it into 4 parts: 45 minutes followed by a 5 to 10 minute break. Studies indicate that you can't concentrate for more than 45 minutes.

3.   Sleep on it - What you review immediately before going to sleep is what your brain will most quickly and efficiently file away. So review just before sleep.

4.   Relax -The Thinking Brain functions best when you are relaxed and free from stress.

5.   Reading habits - Read out loud; don't bother if it disturbs others at home. Walk while you read; don't bother if it disturbs your others at home.

6.   Draw charts. Write and rewrite key ideas and formula.

7.   Use flash cards - Flash cards facilitate constant review and instantly help to check output. Rules, principles, formulae should all go into it.

8.   Revision - You should revise shortly after the learning period. At first, say within 10 minutes after learning and then, again, within the next 24 hours. The reason: when you finish learning, the brain has not had enough time to organise and store everything. It needs a few minutes to store, organise and integrate the data. Studies show that 82% of what you learn today can be forgotten in 24 hours if you do not make a special effort to remember it.

9.   Interest is the mother of attention and attention is the mother of memory.

10.  The best way to remember is to repeat; and the best way to repeat is to “teach” some one else.

11.  If exhaustion or drowsiness comes on frequently, take some phosphate tonic, preferably kali phos 6x or 12x prescribed by homoeopaths.

 

27 CSP)       Manu Ltd and Sanu Ltd are identical, but Manu Ltd does not use any debts but in Sanu has 9% debentures of Rs.8 Lacs. Both have EBIT of Rs.2,60,000 p.a. and the capitalization rate is 10% Assume corporate tax rate 30%. Calculate value of firm according to MM hypothesis.

Solution:

Particulars
Manu Ltd
Sanu Ltd
EBIT
2,60,000
2,60,000
Tax %
30%
30%
Debt
nil
8,00,000
Value
= EBIT (1-t) / KE
= 2,60,000 (1-0.30) / 10% = 18,20,000
=Vu + Dt
=18,20,000 + (8,00,000 * 30%)
= 20,60,000

4 4) RM :A company is presently having credit sales of ` 12 lakh. The existing credit terms are 1/10, net 45 days average collection period is 30 days. The current bad debts loss is 1.5%. in order to accelerate the collection process further as also to increase sales, the company is contemplating liberalization of its existing credit terms to 2/10, net 45 days. It is expected that sales are likely in increase 1/3 of existing sales, bad debts increase to 2% of sales and average collection period to decline to 20 days. The contribution to sales ratio of the company is 22% and opportunity cost of investment in term of sales revenue are expected to avail cash discount under existing and liberalization scheme respectively. The tax rate is 30%. Should the company change its credit terms? (Assume 360 days in a year).
Solution:


Evaluation of discount policy
Particulars                                           Amount in Rs.
(A) Contribution on additional sales = 12 Lac × 1/3 * 22%  = 88,000
(B) Saving of interest
Under existing situation 12L × 78 % × 30/360= 78,000
After change in policy 16L × 78 % ×20/260= 69,333
Decrease in COD                                                              8,667
Saving of Interest @ 15 %                                             1,300
(C) B. Debts
Current 12 Lac × 1.50%   = 18,000
After 16 Lac × 2%              = 32,000               (14,000)
(D) Cash Discount           
Current 12L × 50% × 1%                 = 6,000
After 16L × 80% × 2%      = 25,600               (19,600)
Net Benefit before tax                                  55,700
Less: Income Tax @ 30%                               16,710
Net Benefit                                                        38,990
Note: Saving of Interest is calculated on cost of debtors


2  5)  A new customer with 10% risk of non-payment desires to establish business connections with you. He would require 1.5 month of credit and is likely to increase your sales by ` 1, 20,000 p.a. Cost of sales amounted to 85% of sales. The tax rate is 30% Should you accept the offer if the required rate of return is 40% (after tax)?
Solution:


Additional sales from new customer p.a. 1,20,000

- Risk of non-payment @ 10% 12,000      1, 08,000

- Cost of sale (85% × 1,20,000)                   1,02,000

PBT                                                                                        6,000

- Tax @ 30%                                                                        1,800

PAT                                                                                        4,200

Avg. Investment in Return= 1,02,000 1.5/12 = 12,750

Rate of return   = 4200/ 12750 * 100 = 32.94%

The offer should not be accepted.