# Blog

## Calculating gross profit ratio, operating profit ratio and stock turnover ratio; KNEC past papers

The question below was extracted from past KNEC exam paper for diploma in business management, business finance. The following information relates to Thomed Limited. \$ Sales                                                                                                      2,500,000 Opening Stock                                                                                   328,750 Purchases                                                                                           966,750 Closing Stock                                                                                      275,500 Selling, Read more

## Calculating the gross profit ratio, operating ratio and stock turnover ratio Example

Question The following information relates to Thomed Limited Dollars (\$) Sales                                                                                                      2,500,000 Opening Stock                                                                                   328,750 Purchases                                                                                           966,750 Closing Stock                                                                                      275,500 Selling, distribution, and administrative expenses             340,000 Calculate: Gross profit ratio Operating ratio Stock turnover ratio This Read more

## Calculating Net Present Value (NPV) and Payback Period (PBP) Example

A firm intends to invest in either project A or B. The expected cash flows are given below: Year                       Project A                             Project B 0                              (2000)                                   (2000) 1                              1000                                       200 2                              800                                         600 3                              600                                         800 4                              200                                         1,200 The Read more

## The importance of cost of capital in financial decision making

Question: Explain the importance of cost of capital in financial decision making  (From KNEC past paper, Diploma in Business Management. Unit name: Business Finance) Answer: The cost of capital refers to the amount of money that a company needs to Read more

## Calculating Working Capital Example – KNEC Past Papers

A new company is planning to raise \$300 million. The cost of debt is 14% and the cost of retained earnings is 24.8%. Preferred stock will be sold at \$110 and floatation costs of \$10 will be incurred. The dividend Read more

## Functions of Commercial Banks in Kenya

Explain four functions of commercial banks in Kenya Commercial banks are significantly important in the economic development of a country like Kenya. They are crucial components of the financial system which support individuals’ and business’s financial needs. The key functions Read more

## Explain four factors that influence the working capital requirements of a firm

Explain four factors that influence the working capital requirements of a firm Working capital in business finance refers to the difference between a company’s current assets and its current liabilities. A company needs good working capital to ensure that its Read more

## Organizational Theory and Behaviour KNEC Past Papers

Free KNEC past papers organizational theory and behavior, Diploma in business management, diploma in human resource management. Access all our KNEC Revision Materials. Organizational theory and behavior KNEC past papers 2015july Organizational theory and behavior KNEC Pas Papers 2016july Organizational Read more

## Ways in which business finance is of importance to a financial manager in making investment decisions

Question: State four ways in which business finance is of importance to a financial manager in making investment decisions Business finance is a discipline and an area of study; a branch in business management that allows managers and aspiring business Read more

## State three features of a debenture as a source of finance

State three features of a debenture as a source of finance Debentures are a source of finance for a company, much like equity or debt. They are issued by a company to debenture holders who can be individuals or companies, Read more