Download pdf - Calculations of Q 2&3-II

Transcript
  • Q2

    Textile Sector (X1) Cement Sector (X2) Chemical Sector (X3)

    Interest Rate 18% 19% 17%

    Bad Debt 5% 6% 7%

    Assumption:

    Recoverable Debt 95 94 93

    Bad Debt 5 6 7

    Total Debt 100 100 100

    Interest Rate 18% 19% 17%

    Interest on

    Recoverable debt 17.1 17.86 15.81

    Loss of Fund 5 6 7

    Total Return 12.1 11.86 8.81

    Net return is defined as difference between the interest on recoverable debt and loss of

    funds due to bad debt.


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