Acc to my view: This question is asking for net purchasing power i.e. if inflation rises the value of money power decline so the company holds cash and AR worth has decline now u can not by the same amount of quantity with the what u buy prior inflation now company hold cash , AR, AP this are monetRead more
Acc to my view:
This question is asking for net purchasing power i.e. if inflation rises the value of money power decline so the company holds cash and AR worth has decline now u can not by the same amount of quantity with the what u buy prior inflation
now company hold cash , AR, AP this are monetary assets and liablity
cash at the end 170000, 50000 decline during the year that means begining 170000
AR at the end 550000, 100000 decline during the year that means begining 650000
AP at the end 720000
loss due to cash at begining 170000*(200-100)/100 = ( 170000)
gain due to decline in cash balance during the yr 50000*(200-125)/125 = 30000 (agar cash bal incr hota to loss ho jota)
loss due to AR at beg 650000*(200-100)/100 = ( 650000)
gain due to AR decline during the yr 100000*(200-125)/125 = 60000
gain due to AP 720000*(200-100)/100 = 720000
net purchasing power = (10000) KPW
sir has also dicatated this type of e.g in 3 point
According to my understanding What is pvgo =Growth - without growth First we do growth Growth ho rhi hai company ke andar to company pura dividend dene ke bajye todha dega given in the ques 40% So 40%kiska eps ka kon sa eps projected kha pe ayega 2019 pe kon si rate se grow ho 5% (given in ques)(basRead more
According to my understanding
What is pvgo =Growth – without growth
First we do growth
Growth ho rhi hai company ke andar to company pura dividend dene ke bajye todha dega given in the ques 40%
So 40%kiska eps ka kon sa eps projected kha pe ayega 2019 pe kon si rate se grow ho 5% (given in ques)(basically this is ggm)
5.04*40%(1.05)/(15%-5%) = 21.17
Without growth
Growth hi nhi hai dividend rakh ke kya karegi company shareholder ko 100% div dedegi
Eps kon sa projected ku isse ans 2019 pe aajayega pull kis karna hai Re se kewal (becz without growth)
According to my understanding first of all calculate the value of fixed coupon =0.037*250=9.25 pv of all the libor rates = 2.9645 pv value of coupon 9.25*2.9645 = 27.4216 Quartely coupon = 27.4216/4 = 6.8554 Final principal = 250*0.98071= 245.1775 Value coupon +principal = 6.8554+245.1775 =252.0329Read more
According to my understanding
first of all calculate the value of fixed
coupon =0.037*250=9.25 pv of all the libor rates = 2.9645
pv value of coupon 9.25*2.9645 = 27.4216
Quartely coupon = 27.4216/4 = 6.8554
Final principal = 250*0.98071= 245.1775
Value coupon +principal = 6.8554+245.1775 =252.0329
value of equity 1892.23/1926.64 *250= 245.5350
value = 245.5350- 252.0329 =6.479
logic for negative
he recive equity returns which was negative and pay fixed int
1614.53/e^0.04(170/365) first denominator comes = 1.0188 , 1614.53/1.0188=1584.7369 1530/e^0.025*(170/365) first denominator comes = 1.01171, 1530/1.0117 = 1512.2882 1584.7369-1512.2882 = 72.44870 see the pt 7 question 2 class 2nd dictated by sir clearly mentioned St* = St - PVD I hope this willRead more
1614.53/e^0.04(170/365) first denominator comes = 1.0188 , 1614.53/1.0188=1584.7369
1530/e^0.025*(170/365) first denominator comes = 1.01171, 1530/1.0117 = 1512.2882
1584.7369-1512.2882 = 72.44870
see the pt 7 question 2 class 2nd dictated by sir clearly mentioned St* = St – PVD
Multinational Operations
Acc to my view: This question is asking for net purchasing power i.e. if inflation rises the value of money power decline so the company holds cash and AR worth has decline now u can not by the same amount of quantity with the what u buy prior inflation now company hold cash , AR, AP this are monetRead more
Acc to my view:
This question is asking for net purchasing power i.e. if inflation rises the value of money power decline so the company holds cash and AR worth has decline now u can not by the same amount of quantity with the what u buy prior inflation
now company hold cash , AR, AP this are monetary assets and liablity
cash at the end 170000, 50000 decline during the year that means begining 170000
AR at the end 550000, 100000 decline during the year that means begining 650000
AP at the end 720000
loss due to cash at begining 170000*(200-100)/100 = ( 170000)
gain due to decline in cash balance during the yr 50000*(200-125)/125 = 30000 (agar cash bal incr hota to loss ho jota)
loss due to AR at beg 650000*(200-100)/100 = ( 650000)
gain due to AR decline during the yr 100000*(200-125)/125 = 60000
gain due to AP 720000*(200-100)/100 = 720000
net purchasing power = (10000) KPW
sir has also dicatated this type of e.g in 3 point
I hope u will get it know!
Intercorporate Investments
see this it will help u ssei
see this it will help u ssei
See lessPVGO
According to my understanding What is pvgo =Growth - without growth First we do growth Growth ho rhi hai company ke andar to company pura dividend dene ke bajye todha dega given in the ques 40% So 40%kiska eps ka kon sa eps projected kha pe ayega 2019 pe kon si rate se grow ho 5% (given in ques)(basRead more
According to my understanding
What is pvgo =Growth – without growth
First we do growth
Growth ho rhi hai company ke andar to company pura dividend dene ke bajye todha dega given in the ques 40%
So 40%kiska eps ka kon sa eps projected kha pe ayega 2019 pe kon si rate se grow ho 5% (given in ques)(basically this is ggm)
5.04*40%(1.05)/(15%-5%) = 21.17
Without growth
Growth hi nhi hai dividend rakh ke kya karegi company shareholder ko 100% div dedegi
Eps kon sa projected ku isse ans 2019 pe aajayega pull kis karna hai Re se kewal (becz without growth)
5.04*(1.05)/15% = 35.28
Ans 21.17-35.28 = -14.11
PVGO Negative ku kunki Roe<Re
See lessForward commitments
According to my understanding first of all calculate the value of fixed coupon =0.037*250=9.25 pv of all the libor rates = 2.9645 pv value of coupon 9.25*2.9645 = 27.4216 Quartely coupon = 27.4216/4 = 6.8554 Final principal = 250*0.98071= 245.1775 Value coupon +principal = 6.8554+245.1775 =252.0329Read more
According to my understanding
first of all calculate the value of fixed
coupon =0.037*250=9.25 pv of all the libor rates = 2.9645
pv value of coupon 9.25*2.9645 = 27.4216
Quartely coupon = 27.4216/4 = 6.8554
Final principal = 250*0.98071= 245.1775
Value coupon +principal = 6.8554+245.1775 =252.0329
value of equity 1892.23/1926.64 *250= 245.5350
value = 245.5350- 252.0329 =6.479
logic for negative
he recive equity returns which was negative and pay fixed int
See lessEquity Pricing & Valuation with continuous compounding
1614.53/e^0.04(170/365) first denominator comes = 1.0188 , 1614.53/1.0188=1584.7369 1530/e^0.025*(170/365) first denominator comes = 1.01171, 1530/1.0117 = 1512.2882 1584.7369-1512.2882 = 72.44870 see the pt 7 question 2 class 2nd dictated by sir clearly mentioned St* = St - PVD I hope this willRead more
1614.53/e^0.04(170/365) first denominator comes = 1.0188 , 1614.53/1.0188=1584.7369
1530/e^0.025*(170/365) first denominator comes = 1.01171, 1530/1.0117 = 1512.2882
1584.7369-1512.2882 = 72.44870
see the pt 7 question 2 class 2nd dictated by sir clearly mentioned St* = St – PVD
I hope this will help if not tell me
See less