MKT610 Assignment No. 2

Assignment No. 2 Marks:20

Customer Relationship Management MKT610

Airblue Limited

is a private airline with its head office on the 12th floor of the Islamabad Stock Exchange (ISE) Towers in Islamabad, Pakistan It is Pakistan's second largest airline with over 30% share of the domestic market. Airblue operates scheduled flights operating 30 daily services linking four domestic destinations and international services to Dubai, Abu Dhabi, Sharjah, Muscat and Manchester. It carried 1.4 million passengers on domestic flights in the 2006–07 fiscal years. Its main base is Jinnah International Airport, Karachi.

On 28 July, 2010,

Airblue Flight 202, an Airbus A321-231, crashed in Islamabad, the capital of Pakistan, killing all 146 passengers and 6 crew members. The airliner was flying from Jinnah International Airport, Karachi, to Benazir Bhutto International Airport Initial reports suggested. that the flight crew lost contact with air traffic controllers whilst attempting to land in dense fog and heavy monsoon rain; however eyewitnesses claim there was only a light drizzle at the time and no fog. The crash is the deadliest air accident to occur in Pakistan to date. (Source Wikipedia)

Being Customer Services Manager, Critically analyze the above situation.

Question 1:

In this dwindling situation, you have three big issues to communicate immediately ;

• To reposition your company’s repute

• To compensate passenger’s families

• To give the reasons of plain crash

What do you suggest in order to communicate with media, passenger’s family members and general public, which Public Relation tool would be preferred by you? Justify your answer-10 marks

Question 2:

You are announcing 20 million rupees per passenger as compensation to their families; prepare a single page press release for this purpose – 10 marks

Fin630 Assignment No. 2

“Investment Analysis & Portfolio Management” (Fin 630)

Assignment No.02 Marks: 20

In order to analyze the performance of ABC Company, following information has been
extracted from its financial statements.

1. You are required to calculate the following ratios:

• ROA (Return on assets)

• ROE (Return on Equity)

• EPS (Earning per share)

2. Calculate the value of bond A using 15% coupon with 20-year maturity, paying 40 semiannual payments of Rs. 75 each, assuming required rate of return of 10%

3. Calculate the value of bond B using 11% coupon with 10-year maturity, paying 40 quarterly payments of Rs. 27.5 each, assuming required rate of return of 16%

Important Tips

1. This Assignment can be best attempted from the knowledge acquired after
watching video lecture no. 1 to lecture no 28 and reading handouts as well as
recommended text book).

2. Video lectures can be downloaded for free from www.youtube.com/vu.

Particular Rs. (000)

Net profit after tax 500

Total assets 8000

Common stock
100,000@ Rs. 10
1000

Retained earning 90

Current liabilities 25

Account receivables 50

Cost of goods sold 1800

Long term debt

Bond A

300@ Rs.1000

300

Bond B

200@ Rs.1000

200

Schedule

Opening Date and Time January 03, 2011 At 12:01 A.M. (Mid-Night)

Due Date and Time January 06, 2011 At 11:59 P.M. (Mid-Night)

Solution:

ROA = 0.0625 or 6.25%

ROE = 0.5 or 50%

EPS = Rs.5 /share

value of bond A= Rs. 787.05

value of bond B= Rs. 344.42

MGT101 Assignment Solution

Question # 1:

1-New provision:

Accounts receivable= Rs. 205000

-Bad Debts = Rs. 5000

------------------

= Rs. 2000000

------------------

New provision = Rs. 2000000 * 5 %

New provision = Rs. 10000

2- amount of Provision for doubtful debts to be appeared in Profit and

Loss Account:

Ali & Sons

Profit and Loss Account

For the year ended Dec 31, 2010

Narration	Rs.	Rs.
New provision for doubtful debts	10000
+ total Bad debts ( 8000+5000)	12000
		22000
- Old provision for doubtful debts		6000
amount of Provision for doubtful debts		16000

8000+5000=13000 hai aap na 12000 lika hai

3-amount of Sundry debtors to be shown in Balance Sheet

Ali & Sons

Balance sheet

As on 31^st December 2010

Assets	Rs.	Rs.
Current Assets:
Debtors	205000
-Bad debts	5000
-new provision	10000
		190000

Question # 2

Debtors control account
Debit side				Credit side
Date	No.	Narrations	Dr. Rs.	Date	No.	Narrations	Dr. Rs.
	1	Bal B/F	25000		4	Discount Allowed	2000
	3	Credit Sales	50000		6	Receipts	35000
					7	Bad debts	10000
					8	Sales return	5000
						Bal C/F	23000
		Total	75000			Total	75000