Numerical Sheet

Mutual Funds
Type 1: Calculation of NAV
1. Global mutual fund has the following details, Calculate its NAV based on the following:
Market value of all investments 1100 crore
Assets 50 crore
Liabilities 80 crore
Number of outstanding unis 100 crore
2. Universal mutual fund has the following details, Calculate its NAV based on following:
Portfolio of mutual fund
Shares of X Ltd. 60 crore
Shares of Y Ltd. 40 crore
Debentures of M Ltd. 75 crore
Government securities 45 crore

Other details of mutual fund

Accrued income 50 crore
Bank balance 60 crore
Accrued expense 40 crore
Size of the fund (20 crore units of 10 rs each) 200 crore
3. Bestworth mutual fund has the following details, Calculate its NAV based on following:
Portfolio of mutual fund
Shares of X Ltd. 160 crore
Shares of Y Ltd. 140 crore
Debentures of M Ltd. 175 crore
Government securities 145 crore

Other details of mutual fund

Accrued income 150 crore
Bank balance 160 crore
Accrued expense 140 crore
Size of the fund (50 crore units of 10 rs each) 500 crore
Type 2 : Entry load and Exit load questions
4. Calculate the offer price and the redemption price, if the NAV of the unit is 15 rs, and the entry
load and exit load is 2% and 3% respectively.

5. [J] 2008-A unit of Ever grow Equity Fund is redeemed at Rs.15, the exit load being 2.25%.
Calculate the NAV.
6. [J] 2004 - The redemption price of a mutual fund unit is 12 while the front-end load and back-
end load charges are 2% and 3% respectively. You are required to calculate:
a) Net asset value (NAV) per unit; and
b) Public offer-price of the unit.
7. [D] 2008 - Define ‘NAV’ and ‘offer price. If Rahul invests Rs.10, 000 in a scheme that charges 2%
front end load at NAV of Rs.10 per unit, what shall be the public offer price?

8. [J] 2010 - The redemption price of a mutual fund unit is Rs.48 while the front-end load and back-
end load charges are 2% and 3% respectively. You are required to calculate —
(i) Net asset value per unit; and
(ii) Public offer price of the unit.
Type 3: Calculation of return
9. Mr. Rajesh invested 1,00,000 rs. in shares of SRL Ltd, he received dividend of 12,000 on these
shares. At the year end the MP of the shares is 1,10,000. Calculate the return for Mr. Rajesh.

10. Mr. Rajesh invested 1,00,000 rs. in shares of SRL Ltd on 1st Jan 2019, he received dividend of
12,000 on these shares. On 30th june the MP of the shares is 1,10,000. Calculate the return for
Mr. Rajesh.
11. Mr. Rajesh invested 1,00,000 rs. in shares of SRL Ltd on 1st Jan 2019, he received dividend of
12,000 on these shares. On 31st September the MP of the shares is 1,10,000. Calculate the
return for Mr. Rajesh.

12. Mr. Rajesh invested 1,00,000 rs. in shares of SRL Ltd. After 30 days the MP of the shares is
1,05,000. Calculate the return for Mr. Rajesh.
 13. Mr. Suraj has invested in the following mutual fund, the details are as follows:
A MF B MF C MF D MF
Total investment 10,000 50,000 20,000 1,00,000
Dividend income 1,000 500 500 5,000
Date of 1st Jan 2020 1st Oct 2019 1st April 2019 1st June 2019
investment
MV as on 31st 11,000 52,000 25,000 1,12,000
march 2020
Comment which mutual fund has given the best returns?

Solution:

Particulars A MF B MF C MF D MF
A Total investment
B Dividend income
C MV as on 31st march 2020
D Return in amount (C + B – A)
E Period of investment (in months)
F Return p.a.
D_ 12
A E

14. Mr. Dhiraj has invested in the following mutual fund, the details are as follows:
A MF B MF C MF D MF
Total investment 10,000 50,000 20,000 1,00,000
Dividend income 1,000 500 500 5,000
Period of 180 days 60 days 30 days 200 days
investment
MV as on 31st 11,000 52,000 25,000 1,12,000
march 2020
Comment which mutual fund has given the best returns?

Solution:

Particulars A MF B MF C MF D MF
A Total investment
B Dividend income
C MV as on 31st march 2020
D Return in amount (C + B – A)
E Period of investment (in days)
F Return p.a.
D_ 365
A E
Practice questions:
1. Bhimrao mutual fund has the following details, Calculate its NAV based on following:
Portfolio of mutual fund
Shares of X Ltd. 10 crore
Shares of Y Ltd. 20 crore
Debentures of M Ltd. 25 crore
Government securities 25 crore

Other details of mutual fund

Accrued income 5 crore
Bank balance 6 crore
Accrued expense 4 crore
Size of the fund (10 crore units of 10 rs each) 100 crore

2. Hariharan mutual fund has the following details, Calculate its NAV based on following:
Portfolio of mutual fund
Shares of X Ltd. 600 crore
Shares of Y Ltd. 400 crore
Debentures of M Ltd. 750 crore
Government securities 450 crore

Other details of mutual fund

Accrued income 50 crore
Bank balance 60 crore
Accrued expense 40 crore
Size of the fund (200 crore units of 10 rs each) 2000 crore

3. Mr. Dhiraj has invested in the following areas, the details are as follows:
A MF B MF Govt. securities Shares of X Ltd.
Total investment 1,00,000 5,00,000 2,00,000 1,00,000
Dividend / interest 1,000 5,000 30,000 5,000
Period of 2 months 6 months 12 months 6 months
investment
MV as on 31st 1,10,000 5,60,000 2,00,000 1,20,000
march 2020
Comment which option has given the best returns?

4. Super mutual fund has launched a scheme named 'Super Bonanza’. The net asset value (NAV) of
the
scheme is Rs.12.00 per unit. The redemption price is Rs.11.65 per unit and offer price is Rs.12.50
per unit. You are required to calculate —
(i) Front-end load; and
(ii) Back-end load.
 NUMERICAL SHEET 2

Ques: Complete the table:

S.no. Contract Type Premium Exercise MP on In the Out of Whether Net

Paid Price due money the the contract Profit/Loss
date money be exercised
or not?
1. Future (Buy) NA 200 210
2. Option holder (call) 5 200 220
3. Future (Sell) NA 200 230
4. Option holder (call) 5 200 240
5. Option holder (call) 5 200 250
6. Future (Buy) NA 200 260
7. Option holder (Put) 5 200 270
8 Option holder (call) 5 200 280
9 Option holder (Put) 5 200 290
10 Future (Sell) NA 200 300
11 Option holder (Put) 5 200 190
12 Option holder (call) 5 200 180
13 Option holder (Put) 5 200 170
14 Option holder (call) 5 200 160
15 Future(Buy) NA 200 150
16 Option holder (Put) 5 200 140
17 Option holder (call) 5 200 130
18 Option holder (Put) 5 200 120
19 Option holder (call) 5 200 110
20 Future (Sell) NA 200 100
21 Option holder (Put) 5 200 215
22 Option holder (call) 5 200 165
23 Option holder (call) 5 200 250
24 Option holder (Put) 5 200 175
25 Future (Buy) NA 200 140
26 Option holder (call) 5 200 260
27 Option holder (call) 5 200 105
28 Option holder (Put) 5 200 115
29 Option holder (Put) 5 200 230
30 Future (Sell) NA 200 240
Ques. Complete the table:

S.no. Contract Type Premium Exercise MP on In the Out of Whether Net

Received Price due money the the contract Profit/Loss
date money be exercised
or not?
1. Option writer (call) 5 200 210
2. Option writer (call) 5 200 220
3. Option writer (call) 5 200 230
4. Option writer (call) 5 200 240
5. Option writer (call) 5 200 250
6. Option writer (Put) 5 200 190
7. Option writer (Put) 5 200 180
8 Option writer (Put) 5 200 170
9 Option writer (Put) 5 200 160
10 Option writer (Put) 5 200 150

Ques. What we the Option contracts? You are required to compute the profit/loss for each investors in
below option contracts:
I. Mr. X writes a call option to purchase share at an exercise price of Rs.60 for a premium of Rs.12
per share. The share price rises to Rs.62 by the time the option expires.

II. Mr. Y buys a put option- at an exercise price of Rs.80 for a premium of Rs.8.50 per share. The
share price falls to Rs.60 by the time the option expires.
III. Mr. Z writes a put option at an exercise price of Rs.80 for a premium of Rs.11 per share. The
price of the share rises to Rs.96 by the time the option expires.

IV. Mr. XY writes a put option with an exercise price of Rs.70 for a premium of Rs.8 per share. The
price falls to 3 48 by the time the option expires.

Answer:

I.

II.

III.

IV.
 What is Enterprise Value?
Enterprise value Enterprise value means the value calculated as market capitalization of a company
plus debt, minority interest and preferred shares, minus total cash and cash equivalents.

Enterprise Value= Market capitalization+ Debt+ Minority Interest and Preferred Shares- Total Cash
and Cash Equivalents

Ques: From the following information, calculate the Enterprise Value of E Ltd

Balance Sheet of E Ltd. as on 31st March, 2018

Liabilities Amount (Rs. Lakh) Assets Amount (Rs. Lakh)
Share Capital (Face 952 Non-Current Assets 2,550
Value Rs.2)
Current Assets: Cash & 102
Reserves & Surplus 48 Cash Equivalent

Minority Interest 115 Other Current Assets 1,323

Short-term Borrowings 2,860

3,975 3,975

Current Market Price Per Share is Rs.96.

Ques. The financial data of a listed company as on 31'1 March, 2018 are as follows

Authorised Equity Share Capital (Rs. 1 crore Rs. 10 Crore

shares of Rs. 10 each)
Paid-up equity share capital Rs. 5 Crore
General Reserve Rs. 3 Crore
Debenture Redemption Reserve Rs. 2 Crore

The Board of Directors of your Company passed resolution by circulation for buy back of Shares to the
extent of 9% of the company’s paid up share capital and free reserves. You are required to examine the
validity of the proposal with reference to the provisions of the SEBI Regulations.
Ques. The Board of Directors of a listed company desires to delist its equity shares from all recognized
stock exchanges. The Voting details through postal ballot are as under:

 Total Number of Voters : 7000 (Public – 5000 and Promoter – 2000)

 Voting at shareholders meeting:
a. Public shareholders :
In Favour : 3300 votes
In against : 1700 votes
b. All promoters shareholder have voted in favour of resolution.
By Referring SEBI delisting regulation, decide upon the resolution passed by the shareholders.
Ques: XYZ Ltd. is proposing to make a public issue of 400 crore equity shares through the book building
mechanism where 50% of the issue size is required to be allotted to Qualified Institutional Buyers.
Determine the following :
(i) The quantum available for allocation to anchor investors.
(ii) The quantum reserved for domestic mutual funds in the anchor investor portion, if any.
(iii) The amount, if any, required to be brought in by the anchor investors given :
(a) The price at which allocation is made to anchor investors is ` 855 per share, and
(b) The price fixed as a result of book building is ` 858 per share.
 NUMERICAL SHEET 3

1. [D] 2003 - Calculate the value of ‘rights’ if Number of rights shares offered (n) = 2,000 Number of
shares held (n) = 1,000 Ex-right Price (Pex) = Rs.18 Right offer price (Pof) = Rs.15 Face value of
shares =Rs.10 (4 marks)

2. [D] 2005 - Calculate the value of rights, if— (i) Number of rights shares offered 7,500 (ii) Number
of shares held 2,500 (iii) Ex-rights price (Pex) Rs. 20 (iv) Rights offer price(Pof) Rs.12 (v) Face
value of shares Ans. Value of right Rs.10 (6 marks)

3. [D] 2014 - The following information is given: No. of rights shares offered : 6,000 No. of shares
held : 3,000 Ex-right price : Rs.32 Rights offer price : Rs.25 Face value of share : Rs.10 You are
required to compute the value of rights. (3 marks)
4. [J] 2015 - Calculate value of 'rights’ from the following information— Number of rights shares
offered 2,500 Number of shares held 1,000 Ex-rights price Rs.18 Rights offer price Rs.15 Face
value of a share Rs.10 (4 marks)

5. [D] 2016 Calculatevalue of 'rights' from the following information— Number of rights shares
offered 2,500 Number of shares held 1,000 Ex-rights price 18 Rights offer price 15 Face value of
a share 10 (4 marks)

6. [D] 2015 -Samantha Ltd. has a share capital of 50,000 equity shares of Rs.100 each. Market
Value is Rs.250 per share. The company decides to make a rights issue to the existing
shareholders in proportion of one new rights share of Rs.100 at a premium of Rs.30 per share
for every 5 shares held. Calculate the value of rights. (6 marks)
7. [J] 2016 Prime Ltd. issued some warrants which allowed the holders to purchase, with one
warrant, one equity share at 18.275 per share. The equity share was quoted at 25 per share and
the warrant was selling at 9.50. In this case, you are required to compute — (i) The minimum
price of warrant; and (ii) The warrant premium. (4 marks)

8. [J] 2016 Manish owns 250 preference shares of Amaze Ltd. which currently sells for 77 per share
and pays annual dividend of 13 per share—(i) What is Manish's expected return? (ii) If Manish
requires 13% return, should he sell or buy more preference shares at the current price? (4
marks)
9. [J] 2009 Ajay purchases 8.4% Government of India Bond, 2018 of face value of Rs.20 lakh @
Rs.102.50 for every unit of security having face value of Rs.100. The settlement is due on 13th
October, 2009. What is the amount to be paid by Ajay ? (Assuming that interest is payable on
13th May and 13th November every year.) (5 marks)

10. [D] 2014 On 25th January, 2013, XY Bank purchased a 91-day treasury bill maturing on 16th
March, 2013. The rate quoted by the seller is 99.25 per 100 face value. Compute the yield
percentage of the treasury bill. (3 marks)
11. [D] 2016 As on 1st April, 2016, Russel Ltd. has surplus cash for six months. It has following two
options under consideration for investing the surplus cash : (i) To invest in fixed deposit at an
interest rate of 8% per annum payable quarterly; or (ii) To buy treasury bills of the face value of
100 at 98.019 maturing after six months. Presuming that the risk involved in both the options is
identical, state with reasons as to which option should be selected by the company for investing
its surplus funds.(4 marks)
 12. [D] 2016 Following information has been collected regarding Share–X trading at NSE on 2nd
September, 2016

DATE TIME PRICE No. of shares traded

2nd September, 2016 14:42:10 265.60 550

2nd September, 2016 14:53:35 262.78 1575

2nd September, 2016 15:00:20 260.99 1514

2nd September, 2016 15:03:30 261.79 1625

2nd September, 2016 15:05:40 260.38 1025

2nd September, 2016 15:12:20 261.51 1390

2nd September, 2016 15:21:25 261.42 800

2nd September, 2016 15:22:20 264.07 600

2nd September, 2016 15:26:55 263.74 1200

You are required to determine the closing price and last traded price for Share–X for 2nd September,
2016. (3 marks)