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Asad Memon

Q1. National Computers paid a dividend of Rs. 5 in 2020 that grew 50%. The dividend will decline linearly for the next 8 years then remain at Rs. 10. Calculate the intrinsic stock value if investors require an 18% return. Q2. Analyze the direction of MAPLE LEAF CEMENT stock price using trendlines, moving averages, and RSI on the provided chart. Explain your analysis and attach the chart. Q3. (A) Decompose ROE for the last two years of OGDCL using the five factors. (B) Estimate EPS for 20X6 using given assumptions about sales, costs, expenses, interest, and taxes. (C) Calculate the

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49 views3 pages

Asad Memon

Q1. National Computers paid a dividend of Rs. 5 in 2020 that grew 50%. The dividend will decline linearly for the next 8 years then remain at Rs. 10. Calculate the intrinsic stock value if investors require an 18% return. Q2. Analyze the direction of MAPLE LEAF CEMENT stock price using trendlines, moving averages, and RSI on the provided chart. Explain your analysis and attach the chart. Q3. (A) Decompose ROE for the last two years of OGDCL using the five factors. (B) Estimate EPS for 20X6 using given assumptions about sales, costs, expenses, interest, and taxes. (C) Calculate the

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shahzeb memon
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© © All Rights Reserved
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Q1- National Computers Ltd has paid a dividend of Rs 5.00 in the year 2020.

The payment growth rate is 50%.


However, this will decline for the next 8 years. The declination is linear. The dividend is then expected to remain
stuck at 10%. What is the intrinsic value per share of National Computers, if investors require a return of 18% from
its stock? (Marks 10

Q2- Open the link http://scstrade.com/TechnicalAnalysis/TA_RealTimeCharting.aspx.


Open the chart of MAPLE LEAF CEMENT. (MLCF). Determine the direction of the price. Draw trend lines on the
chart, and along with that explain your answer using all three tools, Trendlines, Moving Averages and Relative
Strength Index. Attach as Screenshot (Marks 15)

Q3- Using the Table below of OGDCL, calculate the following ratios
A) Decompose the ROE for the last two years in terms of five factors.
B) Estimate the EPS for the next year (20X6) using the following assumptions :
(i) Net-Sales will increase by 12%. (ii) Cost of Goods sold will increase by 11%. (iii) Operating Expense will
increase by 10%. (iv) There will be nil non-operating surplus or deficit. (v) Interest will decrease by 2%.
Effective tax rate will increase by 2%.
C) Price to earnings ratio (20x5)
D) Price to Book Value Ratio (20x3) (Marks 15)
OGDCL LTD
Rs in Millions
20X1 20X2 20X3 20X4 20X5
Net sales 1020 1090 1210 1350 1520

Cost of goods sold 734 807 883 959 1095


Cross profit 286 283 327 391 425

Operating expenses 72 74 85 105 120


Operating profit 214 209 242 286 305
Non-operating
surplus/deficit 11 14 18 -12 -5
PBIT 225 223 260 274 300
Interest 40 45 60 66 55

Profit before tax 185 178 200 208 245


Tax 35 38 40 52 50
Profit after tax 150 140 160 156 195
Dividends 60 60 65 65 70
Retained earnings 90 80 95 91 125
Equity share capital
(Rs 10 par) 200 200 200 250 250
Reserves and
surplus 400 480 575 616 741

Shareholders ‘funds 600 680 775 866 991


Loan funds 400 450 550 600 615
Capital employed 1000 1130 1325 1466 1606
Net fixed assets 600 650 710 850 900
Investments 50 55 60 70 80

Net current assets 350 425 555 546 626


Total assets 1000 1130 1325 1466 1606

Market price per


share (End of year) 60 55 65 57 75

Q4- While fundamental and technical analyses are two popular methods of equity valuation, describe few steps of
Qualitative Analysis that you may conduct to ascertain the value of the firm. (M

Q5- You have to evaluate the value of company fundamentally. Your accountant suggests you to use Book Value
Method while your Banker suggests you to use Adjusted Book Value Method. What would be your answer in terms
of the effectiveness of the above methods in valuing a company? (Marks 5)

Q6- Fill in the blanks


1- __________________ is the most used type of price charts in investment and trading.
2- _______________ & _____________ are two types of upper and lower range identified in price charts.
3- Inverted Head and Shoulder is a pattern which shows
a. Continuation b. Reversal
4- The following pattern would be observed in a bullish candle.
a. Closing price > Opening Price b. Opening Price > Closing Price.
5- A lagging indicator is the one which shows
a. Previous Price movement b. Future Price Movements
6- Moving average is a trading indicator that stands invalidated in a
a. Range b. Trend
7- CAPM, Dividend Growth Model, Financial statement analysis all lead to assist us in
a. Equity valuation b. Equity Appreciation c. Equity Depreciation
8- Sales/ Total Asset is a formula which represents _________________
9- Reserves and Surplus is a part of
a. Assets b. Liabilities c. Capital
10- Which of this analysis holds applicable for all asset classes (Stock, FX, Commodities)
a. Fundamental Analysis b. Technical Analysis (Marks 5)

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