Independent regulators are government backed regulatory bodies that are sanctioned by the govt. and they have the legal authority to enact and enforce rules. Also, Independent regulators don't get government funding. SRO's are created by an industry on a voluntary basis.They are funded independentlyRead more
Independent regulators are government backed regulatory bodies that are sanctioned by the govt. and they have the legal authority to enact and enforce rules. Also, Independent regulators don’t get government funding.
SRO’s are created by an industry on a voluntary basis.They are funded independently and not by the govt.
TCB satisfies the conditions of being an Independent regulator.
Its given that Troubadour has taken a short position in the forward contract-- Means he has done F-. F- means contract to sell something later at a price agreed upon today. Say, today I do F- at 100. Later, if forward price falls below 100, then i will be at an advantage bcoz i have already contractRead more
Its given that Troubadour has taken a short position in the forward contract– Means he has done F-.
F- means contract to sell something later at a price agreed upon today.
Say, today I do F- at 100. Later, if forward price falls below 100, then i will be at an advantage bcoz i have already contracted to sell at 100 ,whereas, others who are now entering the forward are contracting to sell at lower prices. Hence, I sit to gain from the short position (F-) that i was holding . I will have a positive value.
But, if later forward price rises to more than 100 then i will lose– Bcoz i will have to sell at 100, whereas others will enter into contracts to sell at prices more than 100. Hence, i will have a loss on the short position that i was holding. I will have a negative value.
Also, we know the formula: F= S(1+Rf)^t
Troubadour has done F- at 250.562289
option A- If S falls, then all else equal, forward price (F) falls. He gains on the short position.
option B- If Rf rises, then all else equal, forward price (F) rises. He loses on the short position.
In the 5th year, you will get PV of all future dividends=17.5 ,AND 5th year ka dividend = 1 So total cash flow in the 5th year = 17.5+1= 18.5 now you do PV of 18.5, you will get 10.9788
In the 5th year, you will get
PV of all future dividends=17.5 ,AND
5th year ka dividend = 1
So total cash flow in the 5th year = 17.5+1= 18.5
now you do PV of 18.5, you will get 10.9788
Coupon amount will not be increased if libor increases.....how is this auto debt management feature? Did not understand.... Also, how is ratchet like a callable and puttable bond?
Coupon amount will not be increased if libor increases…..how is this auto debt management feature?
Did not understand…. Also, how is ratchet like a callable and puttable bond?
Thank you. In this sum, we have to answer from the Company's point of view (credit period increased- customers pay with delay- avg. collection period for the company increased) . I understood this. But, can't we infer something by calculating the Cost of Trade Credit ?
Thank you.
In this sum, we have to answer from the Company’s point of view (credit period increased- customers pay with delay- avg. collection period for the company increased) . I understood this.
But, can’t we infer something by calculating the Cost of Trade Credit ?
Eco CFA L2
Independent regulators are government backed regulatory bodies that are sanctioned by the govt. and they have the legal authority to enact and enforce rules. Also, Independent regulators don't get government funding. SRO's are created by an industry on a voluntary basis.They are funded independentlyRead more
Independent regulators are government backed regulatory bodies that are sanctioned by the govt. and they have the legal authority to enact and enforce rules. Also, Independent regulators don’t get government funding.
SRO’s are created by an industry on a voluntary basis.They are funded independently and not by the govt.
TCB satisfies the conditions of being an Independent regulator.
See lessRegulation
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See lessPricing and valuation of forward commitments
Its given that Troubadour has taken a short position in the forward contract-- Means he has done F-. F- means contract to sell something later at a price agreed upon today. Say, today I do F- at 100. Later, if forward price falls below 100, then i will be at an advantage bcoz i have already contractRead more
Its given that Troubadour has taken a short position in the forward contract– Means he has done F-.
F- means contract to sell something later at a price agreed upon today.
Say, today I do F- at 100. Later, if forward price falls below 100, then i will be at an advantage bcoz i have already contracted to sell at 100 ,whereas, others who are now entering the forward are contracting to sell at lower prices. Hence, I sit to gain from the short position (F-) that i was holding . I will have a positive value.
But, if later forward price rises to more than 100 then i will lose– Bcoz i will have to sell at 100, whereas others will enter into contracts to sell at prices more than 100. Hence, i will have a loss on the short position that i was holding. I will have a negative value.
Also, we know the formula: F= S(1+Rf)^t
Troubadour has done F- at 250.562289
option A- If S falls, then all else equal, forward price (F) falls. He gains on the short position.
option B- If Rf rises, then all else equal, forward price (F) rises. He loses on the short position.
ans. is B
Dividend discount model
In the 5th year, you will get PV of all future dividends=17.5 ,AND 5th year ka dividend = 1 So total cash flow in the 5th year = 17.5+1= 18.5 now you do PV of 18.5, you will get 10.9788
In the 5th year, you will get
See lessPV of all future dividends=17.5 ,AND
5th year ka dividend = 1
So total cash flow in the 5th year = 17.5+1= 18.5
now you do PV of 18.5, you will get 10.9788
Option embedded bonds
Coupon amount will not be increased if libor increases.....how is this auto debt management feature? Did not understand.... Also, how is ratchet like a callable and puttable bond?
Coupon amount will not be increased if libor increases…..how is this auto debt management feature?
See lessDid not understand…. Also, how is ratchet like a callable and puttable bond?
Aggregate Output, prices
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See lessIndustry & Co. Analysis
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See lessCredit Analysis
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See lessOverview of Equity Securities
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See lessWorking Capital Management
Thank you. In this sum, we have to answer from the Company's point of view (credit period increased- customers pay with delay- avg. collection period for the company increased) . I understood this. But, can't we infer something by calculating the Cost of Trade Credit ?
Thank you.
See lessIn this sum, we have to answer from the Company’s point of view (credit period increased- customers pay with delay- avg. collection period for the company increased) . I understood this.
But, can’t we infer something by calculating the Cost of Trade Credit ?