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Read the text carefully and answer the questions:
Electronic Follow Pro, a Delhi Based Company dealing the almost all types of electronic products, appointed marketing expert, Mr. Salman Khan as the CEO of the company, with a target to increase their market share from 40% to 50% for the accounting year 2022-23. Mr. Salman discussed the details of target to be achieved with all departmental heads and branch heads of all branches in Delhi. The target is to reach all backward or less developed cities of Delhi NCR, Motto of new Project is “Use More; Save More”. Selling, Distribution and Promotional expenses of the firm will increase manifold. The finance manager Mr. Sharukh was asked to prepare the budget accordingly, an additional fund requirement of Rs. 60,00,000 is to be raised. The Finance Manager Mr. Sharukh proposed to (i) issue equity shares of Rs. 100 each for Rs. 20,00,000 (ii) 20,000 10% debentures of Rs. 100 each to the public at a premium of 5%; redeemable after 5 years at Rs. 110 per debenture. (iii) Raise a loan of Rs. 20,00,000 from Bank of India against debenture kept as an additional security.
Q. What is the amount of annual fixed obligation?
  • a)
    Rs. 2,00,000
  • b)
    Rs. 20,00,000
  • c)
    Rs. 2,20,000
  • d)
    Rs. 20,000
Correct answer is option 'A'. Can you explain this answer?
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Calculation of Annual Fixed Obligation:
Annual fixed obligation refers to the total amount that the company has to pay annually towards its fixed expenses such as interest on debentures and loan, and dividends on equity shares.

Components of Annual Fixed Obligation:
- Interest on debentures:
- Total debentures issued = 20,000
- Face value of each debenture = Rs. 100
- Rate of interest = 10%
- Premium on debentures = 5%
- Total interest payable per year = 20,000 * 100 * 10% = Rs. 2,00,000
- Dividend on equity shares:
- Total equity shares issued = Rs. 20,00,000 / Rs. 100 = 20,000
- Dividend per share = Rs. 0 (since no dividend is mentioned)
- Total dividend payable per year = 20,000 * 0 = Rs. 0
- Interest on bank loan:
- Bank loan amount = Rs. 20,00,000
- No specific interest rate mentioned
- Therefore, interest amount cannot be calculated
- Total Annual Fixed Obligation:
- Annual fixed obligation = Total interest on debentures + Total dividend on equity shares + Interest on bank loan
- Annual fixed obligation = Rs. 2,00,000 + Rs. 0 + (interest on bank loan)
- Therefore, the amount of annual fixed obligation is Rs. 2,00,000.
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Read the text carefully and answer the questions: Electronic Follow Pro, a Delhi Based Company dealing the almost all types of electronic products, appointed marketing expert, Mr. Salman Khan as the CEO of the company, with a target to increase their market share from 40% to 50% for the accounting year 2022-23. Mr. Salman discussed the details of target to be achieved with all departmental heads and branch heads of all branches in Delhi. The target is to reach all backward or less developed cities of Delhi NCR, Motto of new Project is “Use More; Save More”. Selling, Distribution and Promotional expenses of the firm will increase manifold. The finance manager Mr. Sharukh was asked to prepare the budget accordingly, an additional fundrequirement of Rs. 60,00,000 is to be raised. The Finance Manager Mr. Sharukh proposed to (i) issue equity shares of Rs. 100 each for Rs. 20,00,000 (ii) 20,000 10% debentures of Rs. 100 each to the public at a premium of 5%; redeemable after 5 years at Rs. 110 per debenture. (iii) Raise a loan of Rs. 20,00,000 from Bank of India against debenture kept as an additional security.Q.What is the amount of annual fixed obligation?a)Rs. 2,00,000b)Rs. 20,00,000c)Rs. 2,20,000d)Rs. 20,000Correct answer is option 'A'. Can you explain this answer?
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Read the text carefully and answer the questions: Electronic Follow Pro, a Delhi Based Company dealing the almost all types of electronic products, appointed marketing expert, Mr. Salman Khan as the CEO of the company, with a target to increase their market share from 40% to 50% for the accounting year 2022-23. Mr. Salman discussed the details of target to be achieved with all departmental heads and branch heads of all branches in Delhi. The target is to reach all backward or less developed cities of Delhi NCR, Motto of new Project is “Use More; Save More”. Selling, Distribution and Promotional expenses of the firm will increase manifold. The finance manager Mr. Sharukh was asked to prepare the budget accordingly, an additional fundrequirement of Rs. 60,00,000 is to be raised. The Finance Manager Mr. Sharukh proposed to (i) issue equity shares of Rs. 100 each for Rs. 20,00,000 (ii) 20,000 10% debentures of Rs. 100 each to the public at a premium of 5%; redeemable after 5 years at Rs. 110 per debenture. (iii) Raise a loan of Rs. 20,00,000 from Bank of India against debenture kept as an additional security.Q.What is the amount of annual fixed obligation?a)Rs. 2,00,000b)Rs. 20,00,000c)Rs. 2,20,000d)Rs. 20,000Correct answer is option 'A'. Can you explain this answer? for Humanities/Arts 2024 is part of Humanities/Arts preparation. The Question and answers have been prepared according to the Humanities/Arts exam syllabus. Information about Read the text carefully and answer the questions: Electronic Follow Pro, a Delhi Based Company dealing the almost all types of electronic products, appointed marketing expert, Mr. Salman Khan as the CEO of the company, with a target to increase their market share from 40% to 50% for the accounting year 2022-23. Mr. Salman discussed the details of target to be achieved with all departmental heads and branch heads of all branches in Delhi. The target is to reach all backward or less developed cities of Delhi NCR, Motto of new Project is “Use More; Save More”. Selling, Distribution and Promotional expenses of the firm will increase manifold. The finance manager Mr. Sharukh was asked to prepare the budget accordingly, an additional fundrequirement of Rs. 60,00,000 is to be raised. The Finance Manager Mr. Sharukh proposed to (i) issue equity shares of Rs. 100 each for Rs. 20,00,000 (ii) 20,000 10% debentures of Rs. 100 each to the public at a premium of 5%; redeemable after 5 years at Rs. 110 per debenture. (iii) Raise a loan of Rs. 20,00,000 from Bank of India against debenture kept as an additional security.Q.What is the amount of annual fixed obligation?a)Rs. 2,00,000b)Rs. 20,00,000c)Rs. 2,20,000d)Rs. 20,000Correct answer is option 'A'. Can you explain this answer? covers all topics & solutions for Humanities/Arts 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Read the text carefully and answer the questions: Electronic Follow Pro, a Delhi Based Company dealing the almost all types of electronic products, appointed marketing expert, Mr. Salman Khan as the CEO of the company, with a target to increase their market share from 40% to 50% for the accounting year 2022-23. Mr. Salman discussed the details of target to be achieved with all departmental heads and branch heads of all branches in Delhi. The target is to reach all backward or less developed cities of Delhi NCR, Motto of new Project is “Use More; Save More”. Selling, Distribution and Promotional expenses of the firm will increase manifold. The finance manager Mr. Sharukh was asked to prepare the budget accordingly, an additional fundrequirement of Rs. 60,00,000 is to be raised. The Finance Manager Mr. Sharukh proposed to (i) issue equity shares of Rs. 100 each for Rs. 20,00,000 (ii) 20,000 10% debentures of Rs. 100 each to the public at a premium of 5%; redeemable after 5 years at Rs. 110 per debenture. (iii) Raise a loan of Rs. 20,00,000 from Bank of India against debenture kept as an additional security.Q.What is the amount of annual fixed obligation?a)Rs. 2,00,000b)Rs. 20,00,000c)Rs. 2,20,000d)Rs. 20,000Correct answer is option 'A'. Can you explain this answer?.
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The Finance Manager Mr. Sharukh proposed to (i) issue equity shares of Rs. 100 each for Rs. 20,00,000 (ii) 20,000 10% debentures of Rs. 100 each to the public at a premium of 5%; redeemable after 5 years at Rs. 110 per debenture. (iii) Raise a loan of Rs. 20,00,000 from Bank of India against debenture kept as an additional security.Q.What is the amount of annual fixed obligation?a)Rs. 2,00,000b)Rs. 20,00,000c)Rs. 2,20,000d)Rs. 20,000Correct answer is option 'A'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of Read the text carefully and answer the questions: Electronic Follow Pro, a Delhi Based Company dealing the almost all types of electronic products, appointed marketing expert, Mr. Salman Khan as the CEO of the company, with a target to increase their market share from 40% to 50% for the accounting year 2022-23. Mr. Salman discussed the details of target to be achieved with all departmental heads and branch heads of all branches in Delhi. The target is to reach all backward or less developed cities of Delhi NCR, Motto of new Project is “Use More; Save More”. Selling, Distribution and Promotional expenses of the firm will increase manifold. The finance manager Mr. Sharukh was asked to prepare the budget accordingly, an additional fundrequirement of Rs. 60,00,000 is to be raised. The Finance Manager Mr. Sharukh proposed to (i) issue equity shares of Rs. 100 each for Rs. 20,00,000 (ii) 20,000 10% debentures of Rs. 100 each to the public at a premium of 5%; redeemable after 5 years at Rs. 110 per debenture. (iii) Raise a loan of Rs. 20,00,000 from Bank of India against debenture kept as an additional security.Q.What is the amount of annual fixed obligation?a)Rs. 2,00,000b)Rs. 20,00,000c)Rs. 2,20,000d)Rs. 20,000Correct answer is option 'A'. 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The Finance Manager Mr. Sharukh proposed to (i) issue equity shares of Rs. 100 each for Rs. 20,00,000 (ii) 20,000 10% debentures of Rs. 100 each to the public at a premium of 5%; redeemable after 5 years at Rs. 110 per debenture. (iii) Raise a loan of Rs. 20,00,000 from Bank of India against debenture kept as an additional security.Q.What is the amount of annual fixed obligation?a)Rs. 2,00,000b)Rs. 20,00,000c)Rs. 2,20,000d)Rs. 20,000Correct answer is option 'A'. Can you explain this answer? has been provided alongside types of Read the text carefully and answer the questions: Electronic Follow Pro, a Delhi Based Company dealing the almost all types of electronic products, appointed marketing expert, Mr. Salman Khan as the CEO of the company, with a target to increase their market share from 40% to 50% for the accounting year 2022-23. Mr. Salman discussed the details of target to be achieved with all departmental heads and branch heads of all branches in Delhi. The target is to reach all backward or less developed cities of Delhi NCR, Motto of new Project is “Use More; Save More”. Selling, Distribution and Promotional expenses of the firm will increase manifold. The finance manager Mr. Sharukh was asked to prepare the budget accordingly, an additional fundrequirement of Rs. 60,00,000 is to be raised. The Finance Manager Mr. Sharukh proposed to (i) issue equity shares of Rs. 100 each for Rs. 20,00,000 (ii) 20,000 10% debentures of Rs. 100 each to the public at a premium of 5%; redeemable after 5 years at Rs. 110 per debenture. (iii) Raise a loan of Rs. 20,00,000 from Bank of India against debenture kept as an additional security.Q.What is the amount of annual fixed obligation?a)Rs. 2,00,000b)Rs. 20,00,000c)Rs. 2,20,000d)Rs. 20,000Correct answer is option 'A'. Can you explain this answer? theory, EduRev gives you an ample number of questions to practice Read the text carefully and answer the questions: Electronic Follow Pro, a Delhi Based Company dealing the almost all types of electronic products, appointed marketing expert, Mr. Salman Khan as the CEO of the company, with a target to increase their market share from 40% to 50% for the accounting year 2022-23. Mr. Salman discussed the details of target to be achieved with all departmental heads and branch heads of all branches in Delhi. The target is to reach all backward or less developed cities of Delhi NCR, Motto of new Project is “Use More; Save More”. Selling, Distribution and Promotional expenses of the firm will increase manifold. The finance manager Mr. Sharukh was asked to prepare the budget accordingly, an additional fundrequirement of Rs. 60,00,000 is to be raised. The Finance Manager Mr. Sharukh proposed to (i) issue equity shares of Rs. 100 each for Rs. 20,00,000 (ii) 20,000 10% debentures of Rs. 100 each to the public at a premium of 5%; redeemable after 5 years at Rs. 110 per debenture. (iii) Raise a loan of Rs. 20,00,000 from Bank of India against debenture kept as an additional security.Q.What is the amount of annual fixed obligation?a)Rs. 2,00,000b)Rs. 20,00,000c)Rs. 2,20,000d)Rs. 20,000Correct answer is option 'A'. Can you explain this answer? tests, examples and also practice Humanities/Arts tests.
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