Yes, we will use GGM in the third stage of the growth and discount it to find IVo. GGM would have been the right answer when the growth is at constant rate from today itself.
Yes, we will use GGM in the third stage of the growth and discount it to find IVo. GGM would have been the right answer when the growth is at constant rate from today itself.
Floating Rate Notes are bonds whose price is always at par (Changes slightly between reset dates) and Duration is the % change in price for a given change in yield. Here reset date is 1, duration will be close to 1 (slight change in yield * 1)
Floating Rate Notes are bonds whose price is always at par (Changes slightly between reset dates) and Duration is the % change in price for a given change in yield. Here reset date is 1, duration will be close to 1 (slight change in yield * 1)
No not necessary, DDM and FCF valuation MAY be same. But usually FCF valuation is more than DDM. FCF valuation should not be less than DDM, it just means there is some error in the enitre valuation exercise.
No not necessary, DDM and FCF valuation MAY be same. But usually FCF valuation is more than DDM. FCF valuation should not be less than DDM, it just means there is some error in the enitre valuation exercise.
The information given looks like in a capsule form, should have also mentioned that a detailed research report exists. Option A is clear violation by the incorrect use of CFA designation. B is also wrong since there is no plagirism as ciation is given.
The information given looks like in a capsule form, should have also mentioned that a detailed research report exists. Option A is clear violation by the incorrect use of CFA designation. B is also wrong since there is no plagirism as ciation is given.
DD Valuation
Yes, we will use GGM in the third stage of the growth and discount it to find IVo. GGM would have been the right answer when the growth is at constant rate from today itself.
Yes, we will use GGM in the third stage of the growth and discount it to find IVo. GGM would have been the right answer when the growth is at constant rate from today itself.
See lessDD Valuation
There are three stages of growth in HLTV and GGM is used when the growth rate is for infinite period.
There are three stages of growth in HLTV and GGM is used when the growth rate is for infinite period.
See lessResidual Income
Maybe something to do with mean reverting feature (High ROE will fall over the long term)
Maybe something to do with mean reverting feature (High ROE will fall over the long term)
See lessCFA L2 – EQ – PE Valn
Sorry, my bad. Took 9m and 7m instead of 0.9m and 0.7m
Sorry, my bad. Took 9m and 7m instead of 0.9m and 0.7m
See lessDuration of the Floating rate bond
Floating Rate Notes are bonds whose price is always at par (Changes slightly between reset dates) and Duration is the % change in price for a given change in yield. Here reset date is 1, duration will be close to 1 (slight change in yield * 1)
Floating Rate Notes are bonds whose price is always at par (Changes slightly between reset dates) and Duration is the % change in price for a given change in yield. Here reset date is 1, duration will be close to 1 (slight change in yield * 1)
See lessFree cashflow valuation
No not necessary, DDM and FCF valuation MAY be same. But usually FCF valuation is more than DDM. FCF valuation should not be less than DDM, it just means there is some error in the enitre valuation exercise.
No not necessary, DDM and FCF valuation MAY be same. But usually FCF valuation is more than DDM. FCF valuation should not be less than DDM, it just means there is some error in the enitre valuation exercise.
See lessVAR – Portfolio Management- CFA Level 2
I guess that will be a case of marginal VAR, although I m not 100% sure
I guess that will be a case of marginal VAR, although I m not 100% sure
See lessSTANDARDS ETHICS
The information given looks like in a capsule form, should have also mentioned that a detailed research report exists. Option A is clear violation by the incorrect use of CFA designation. B is also wrong since there is no plagirism as ciation is given.
The information given looks like in a capsule form, should have also mentioned that a detailed research report exists. Option A is clear violation by the incorrect use of CFA designation. B is also wrong since there is no plagirism as ciation is given.
See lessTobin’s Q Ratio
Maybe it measures whether total invested resources today is sufficient (Tobins Q Ratio >1) to replace the entire assets of the company, if required.
Maybe it measures whether total invested resources today is sufficient (Tobins Q Ratio >1) to replace the entire assets of the company, if required.
See lessEthics – CFA L2
Sorry, rectified it.
Sorry, rectified it.
See less