Macroeconomics and Company Profits Analysis
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Questions and Answers

What is the primary focus of macroeconomics?

  • Individual incomes and decisions (correct)
  • Consumer behavior in specific markets (correct)
  • Overall economic performance and issues (correct)
  • Corporate profits and a firm's decisions (correct)
  • Which method is used to evaluate equity shares based on predicted profits and fair yields?

  • Market Value Method
  • Cost Value Method
  • Yield Value Method (correct)
  • Asset-Based Value Method
  • When calculating the total cost of land, which expense would NOT be included?

  • Transfer of Title
  • Sale of Scrap of Old Building (correct)
  • Demolition Cost of Old Building
  • Purchase of Land
  • If a company transfers 25% of its profit to the reserve fund, how does this affect its retained earnings?

    <p>It decreases retained earnings by 25%</p> Signup and view all the answers

    Which financial metric would be least relevant for analyzing a single company's performance?

    <p>Gross Domestic Product (GDP)</p> Signup and view all the answers

    Study Notes

    Company Profits

    • Company profits for 2021: Rs. 90,000
    • Company profits for 2022: Rs. 98,000
    • Company profits for 2023: Rs. 1,00,000

    Profit Transfer

    • Company transfers 25% of profit to reserve fund.

    Equity Share Yield

    • Fair yield on equity shares of similar companies is 10%.
    • Calculate equity share value using Intrinsic Value, Yield Value, and Fair Value methods.

    Land Purchase Costs

    • Purchase of land: Rs. 12,00,000
    • Transfer of title: Rs. 1,00,000
    • Other legal charges: Rs. 50,000
    • Demolition cost of old building: Rs. 40,000
    • Scrap sale of old building: Rs. 8,000
    • Calculate total cost of land.

    Macroeconomics

    • Macroeconomics deals with individual decision, theory of firm, individual income, ...(rest of the text is unclear)

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    Description

    Explore key concepts in Macroeconomics and company profits through this quiz. Calculate equity share values and total land costs based on provided financial data. This quiz will test your understanding of profit transfers, reserve funds, and fair yield on shares.

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