for calculating EPS, we always deduct preferred dividend from net income. In case of dilutive EPS, if the preferrence shares are convertible, we check if they are anti dilutive or not. if they are not anti-dilutive, we add back the preferrence dividend.
for calculating EPS, we always deduct preferred dividend from net income.
In case of dilutive EPS, if the preferrence shares are convertible, we check if they are anti dilutive or not.
if they are not anti-dilutive, we add back the preferrence dividend.
total number of periods= 8 (4 yrs x 2) At the end of 1 yr, i.e-- after 2 periods Hence we take n=6. similarly n=2 for "at the end of year 2 deposit" and so on...
total number of periods= 8 (4 yrs x 2)
At the end of 1 yr, i.e– after 2 periods
Hence we take n=6.
similarly n=2 for “at the end of year 2 deposit”
and so on…
Sanjay sir advised to skip this particular question.. As you can see in this diagram, investors take low risk and invest funds at Rf (line from Rf to Point T). So, the slope for this lending part can be interpretted as the difference between Rf and Market portfolio(M or T in my diagram). Similarly,Read more
Sanjay sir advised to skip this particular question..
As you can see in this diagram, investors take low risk and invest funds at Rf (line from Rf to Point T). So, the slope for this lending part can be interpretted as the difference between Rf and Market portfolio(M or T in my diagram).
Similarly, Risk seekers borrow at Rf and choose a portfolio about the market portfolio. So, the slope for this is difference Investor’s borrowing cost and market’s return.
therefore if we conclude now, market return in both case is same. Now if there will be a huge difference between Risk free rate and investor cost of borrowing, the slope in both cases will have high differences and both will be more deviated. It will result in kink in CML.(in hindi- CML me tedapan hoga)
Calculator
For 1st yr: 6 FV , 8 I/y , 1 N , cpt pv 5.55 2nd yr: 6 FV, 9 I/y , 2 N , cpt pv 5.05 3 yr: 106 FV, 10 I/y , 3 N , cpt pv 79.64
For 1st yr: 6 FV , 8 I/y , 1 N , cpt pv 5.55
See less2nd yr: 6 FV, 9 I/y , 2 N , cpt pv 5.05
3 yr: 106 FV, 10 I/y , 3 N , cpt pv 79.64
Understanding Income Statement
for calculating EPS, we always deduct preferred dividend from net income. In case of dilutive EPS, if the preferrence shares are convertible, we check if they are anti dilutive or not. if they are not anti-dilutive, we add back the preferrence dividend.
for calculating EPS, we always deduct preferred dividend from net income.
See lessIn case of dilutive EPS, if the preferrence shares are convertible, we check if they are anti dilutive or not.
if they are not anti-dilutive, we add back the preferrence dividend.
portfolio management question cfa lvl 1
calculate Beta of portfolio as covariance/variance of portfolio = (0.8 X 30 X 15)/225 =1.6 now use CAPM eq. Rf + (Rm-Rf)Beta 6+(8)1.6 = 18.8%
calculate Beta of portfolio as covariance/variance of portfolio = (0.8 X 30 X 15)/225 =1.6
now use CAPM eq. Rf + (Rm-Rf)Beta
6+(8)1.6 = 18.8%
See lessTime Value of Money
total number of periods= 8 (4 yrs x 2) At the end of 1 yr, i.e-- after 2 periods Hence we take n=6. similarly n=2 for "at the end of year 2 deposit" and so on...
total number of periods= 8 (4 yrs x 2)
At the end of 1 yr, i.e– after 2 periods
Hence we take n=6.
See lesssimilarly n=2 for “at the end of year 2 deposit”
and so on…
portfolio Management
Sanjay sir advised to skip this particular question.. As you can see in this diagram, investors take low risk and invest funds at Rf (line from Rf to Point T). So, the slope for this lending part can be interpretted as the difference between Rf and Market portfolio(M or T in my diagram). Similarly,Read more
Sanjay sir advised to skip this particular question..
As you can see in this diagram, investors take low risk and invest funds at Rf (line from Rf to Point T). So, the slope for this lending part can be interpretted as the difference between Rf and Market portfolio(M or T in my diagram).
See lessSimilarly, Risk seekers borrow at Rf and choose a portfolio about the market portfolio. So, the slope for this is difference Investor’s borrowing cost and market’s return.
therefore if we conclude now, market return in both case is same. Now if there will be a huge difference between Risk free rate and investor cost of borrowing, the slope in both cases will have high differences and both will be more deviated. It will result in kink in CML.(in hindi- CML me tedapan hoga)