i think the answer should be A. Statement 1: It is correct because, in the residual income approach, we use residual income which is a form of economic profit before paying dividends and other expenses. compared to DDM or FCF methods which calculate the cash flow after paying dividends or after payiRead more
i think the answer should be A.
Statement 1: It is correct because, in the residual income approach, we use residual income which is a form of economic profit before paying dividends and other expenses. compared to DDM or FCF methods which calculate the cash flow after paying dividends or after paying some other form of expense.
Statement 2: it is correct because you are doing the same ‘cashflow pulling’ strategy as you do in other valuation approaches such as DDM and FCF.
i think the answer should be A. Statement 1: It is correct because, in the residual income approach, we use residual income which is a form of economic profit before paying dividends and other expenses. compared to DDM or FCF methods which calculate the cash flow after paying dividends or after payiRead more
i think the answer should be A.
Statement 1: It is correct because, in the residual income approach, we use residual income which is a form of economic profit before paying dividends and other expenses. compared to DDM or FCF methods which calculate the cash flow after paying dividends or after paying some other form of expense.
Statement 2: it is correct because you are doing the same ‘cashflow pulling’ strategy as you do in other valuation approaches such as DDM and FCF.
government agency is a government body that has the power to enforce laws established by them but they are also funded by the government, so they are not independent. independent regulators have the power to enforce the laws they come up with, meaning they have teeth given to them by the government.Read more
government agency is a government body that has the power to enforce laws established by them but they are also funded by the government, so they are not independent.
independent regulators have the power to enforce the laws they come up with, meaning they have teeth given to them by the government. but they are not funded by the government (hence they are independent).
SRB is an organisation that has members. so they can enforce the laws made by them ONLY among their members. they are also not funded by the government so they are independent.
SROs also have members but they have been given teeth by the government to enforce their laws on their members AND on other groups as well. they are also not funded by the government so they are independent.
in case I’m wrong, please feel free to correct me.
i think the answer should be A. Statement 1: It is correct because, in the residual income approach, we use residual income which is a form of economic profit before paying dividends and other expenses. compared to DDM or FCF methods which calculate the cash flow after paying dividends or after payiRead more
i think the answer should be A.
Statement 1: It is correct because, in the residual income approach, we use residual income which is a form of economic profit before paying dividends and other expenses. compared to DDM or FCF methods which calculate the cash flow after paying dividends or after paying some other form of expense.
Statement 2: it is correct because you are doing the same ‘cashflow pulling’ strategy as you do in other valuation approaches such as DDM and FCF.
i think the answer should be A. Statement 1: It is correct because, in the residual income approach, we use residual income which is a form of economic profit before paying dividends and other expenses. compared to DDM or FCF methods which calculate the cash flow after paying dividends or after payiRead more
i think the answer should be A.
Statement 1: It is correct because, in the residual income approach, we use residual income which is a form of economic profit before paying dividends and other expenses. compared to DDM or FCF methods which calculate the cash flow after paying dividends or after paying some other form of expense.
Statement 2: it is correct because you are doing the same ‘cashflow pulling’ strategy as you do in other valuation approaches such as DDM and FCF.
2 stage => growth rate of 35% for the next 5 years and then the growth rate will be 5% forever 3 stage => growth rate of 35% for the next 5 years and it will linearly decline to the sustainable growth rate of 5% in 8 years. (first stage is 35% for 5 years, second stage is the period of 8 yearsRead more
2 stage => growth rate of 35% for the next 5 years and then the growth rate will be 5% forever
3 stage => growth rate of 35% for the next 5 years and it will linearly decline to the sustainable growth rate of 5% in 8 years. (first stage is 35% for 5 years, second stage is the period of 8 years where growth declines to 5%, third stage is where the growth rate is 5% forever)
the correct answer is B. The near-term futures are more expensive than the far-term futures (the futures price is falling) = this price of futures will fall only if it is being sold more than it is being bought. => who will sell commodity futures? producers as they are afraid of prices rising. =Read more
the correct answer is B.
The near-term futures are more expensive than the far-term futures (the futures price is falling) = this price of futures will fall only if it is being sold more than it is being bought. => who will sell commodity futures? producers as they are afraid of prices rising. => but his research says that consumers are more concerned, so hedging pressure hypothesis is not the answer.
futures prices are a positive function of storage cost i.e., if storage costs of the actual commodity is high, futures prices is more. but the futures price is falling here which means the storage cost is not contributing to the price of the futures contract.
FCFE is the funds available to the equity shareholders. if the if the expenditures are being capitalised, that means they are not being treated properly (they should be expensed). this overstates the net income and the funds available to the shareholders. so it should not be used as a valuation metrRead more
FCFE is the funds available to the equity shareholders. if the if the expenditures are being capitalised, that means they are not being treated properly (they should be expensed). this overstates the net income and the funds available to the shareholders. so it should not be used as a valuation metric.
RESEDUAL INCOME APPROACH
i think the answer should be A. Statement 1: It is correct because, in the residual income approach, we use residual income which is a form of economic profit before paying dividends and other expenses. compared to DDM or FCF methods which calculate the cash flow after paying dividends or after payiRead more
i think the answer should be A.
Statement 1: It is correct because, in the residual income approach, we use residual income which is a form of economic profit before paying dividends and other expenses. compared to DDM or FCF methods which calculate the cash flow after paying dividends or after paying some other form of expense.
Statement 2: it is correct because you are doing the same ‘cashflow pulling’ strategy as you do in other valuation approaches such as DDM and FCF.
See lessRESEDUAL INCOME APPROACH
i think the answer should be A. Statement 1: It is correct because, in the residual income approach, we use residual income which is a form of economic profit before paying dividends and other expenses. compared to DDM or FCF methods which calculate the cash flow after paying dividends or after payiRead more
i think the answer should be A.
Statement 1: It is correct because, in the residual income approach, we use residual income which is a form of economic profit before paying dividends and other expenses. compared to DDM or FCF methods which calculate the cash flow after paying dividends or after paying some other form of expense.
Statement 2: it is correct because you are doing the same ‘cashflow pulling’ strategy as you do in other valuation approaches such as DDM and FCF.
See lessEconomic Regulators
government agency is a government body that has the power to enforce laws established by them but they are also funded by the government, so they are not independent. independent regulators have the power to enforce the laws they come up with, meaning they have teeth given to them by the government.Read more
government agency is a government body that has the power to enforce laws established by them but they are also funded by the government, so they are not independent.
independent regulators have the power to enforce the laws they come up with, meaning they have teeth given to them by the government. but they are not funded by the government (hence they are independent).
SRB is an organisation that has members. so they can enforce the laws made by them ONLY among their members. they are also not funded by the government so they are independent.
SROs also have members but they have been given teeth by the government to enforce their laws on their members AND on other groups as well. they are also not funded by the government so they are independent.
in case I’m wrong, please feel free to correct me.
See lessRESEDUAL INCOME APPROACH
i think the answer should be A. Statement 1: It is correct because, in the residual income approach, we use residual income which is a form of economic profit before paying dividends and other expenses. compared to DDM or FCF methods which calculate the cash flow after paying dividends or after payiRead more
i think the answer should be A.
Statement 1: It is correct because, in the residual income approach, we use residual income which is a form of economic profit before paying dividends and other expenses. compared to DDM or FCF methods which calculate the cash flow after paying dividends or after paying some other form of expense.
Statement 2: it is correct because you are doing the same ‘cashflow pulling’ strategy as you do in other valuation approaches such as DDM and FCF.
See lessRESEDUAL INCOME APPROACH
i think the answer should be A. Statement 1: It is correct because, in the residual income approach, we use residual income which is a form of economic profit before paying dividends and other expenses. compared to DDM or FCF methods which calculate the cash flow after paying dividends or after payiRead more
i think the answer should be A.
Statement 1: It is correct because, in the residual income approach, we use residual income which is a form of economic profit before paying dividends and other expenses. compared to DDM or FCF methods which calculate the cash flow after paying dividends or after paying some other form of expense.
Statement 2: it is correct because you are doing the same ‘cashflow pulling’ strategy as you do in other valuation approaches such as DDM and FCF.
See lessFREE CASH FLOW
i think we consider that as a single stage because it is a period of abnormal growth
i think we consider that as a single stage because it is a period of abnormal growth
See lessFREE CASH FLOW
2 stage => growth rate of 35% for the next 5 years and then the growth rate will be 5% forever 3 stage => growth rate of 35% for the next 5 years and it will linearly decline to the sustainable growth rate of 5% in 8 years. (first stage is 35% for 5 years, second stage is the period of 8 yearsRead more
2 stage => growth rate of 35% for the next 5 years and then the growth rate will be 5% forever
3 stage => growth rate of 35% for the next 5 years and it will linearly decline to the sustainable growth rate of 5% in 8 years. (first stage is 35% for 5 years, second stage is the period of 8 years where growth declines to 5%, third stage is where the growth rate is 5% forever)
See lessCommodities – AI
the correct answer is B. The near-term futures are more expensive than the far-term futures (the futures price is falling) = this price of futures will fall only if it is being sold more than it is being bought. => who will sell commodity futures? producers as they are afraid of prices rising. =Read more
the correct answer is B.
The near-term futures are more expensive than the far-term futures (the futures price is falling) = this price of futures will fall only if it is being sold more than it is being bought. => who will sell commodity futures? producers as they are afraid of prices rising. => but his research says that consumers are more concerned, so hedging pressure hypothesis is not the answer.
futures prices are a positive function of storage cost i.e., if storage costs of the actual commodity is high, futures prices is more. but the futures price is falling here which means the storage cost is not contributing to the price of the futures contract.
See lessFCFF vs FCFE
FCFE is the funds available to the equity shareholders. if the if the expenditures are being capitalised, that means they are not being treated properly (they should be expensed). this overstates the net income and the funds available to the shareholders. so it should not be used as a valuation metrRead more
FCFE is the funds available to the equity shareholders. if the if the expenditures are being capitalised, that means they are not being treated properly (they should be expensed). this overstates the net income and the funds available to the shareholders. so it should not be used as a valuation metric.
See lessFRA CFA level2
answered
answered
See less