Question is simply asking how much change in sales was from 2014 to 2015 in US region in SEK terms i e. In SEK currency using Lars's observations. Lars's observation 1 explanation : According to lars in 2014, sales per store in SEK TERMS (meaning sales made in sweden and in swedish currency) i.e. seRead more
Question is simply asking how much change in sales was from 2014 to 2015 in US region in SEK terms i e. In SEK currency using Lars’s observations.
Lars’s observation 1 explanation :
According to lars in 2014, sales per store in SEK TERMS (meaning sales made in sweden and in swedish currency) i.e. sek 4653/99 = sek 47 million is equivalent to sales per store in US (note that it is not in USD terms so we’ll have to convert SEK 47 million in USD to find first find the sales per store in USD terms) which is 47/6.53 = $ 7.40 million per store.
Therefore, SEK 47 million = $7.40 million. And hence sales per store in 2014 in US region is $7.40 million.
Lars’s observation 2 explanation :
According to Lars in 2015, 2014 and 2015 ka sales per store is same but in USD terms i.e. sales per store in 2014 and 2015 is $7.40 million but question SEK terms mein pucha hai so we’ll again have to convert 7.40 million to sek using average rate of 2015 which comes to 7.40 × 7.595 = sek 56.30 per store.
Now change in sales from 2014 to 2015 is — (56.20-47) × 80 = sek 736.24 or 737 million
Please don't Mind hindi language in answer : Kloth Said that debt ka portion bahut jayda ho gya h...itna zayda ki debt to equity ratio increase ho gya hai....toh usko same proportion mein laane k liye kya karein? Ofcourse equity issue karo...par nai kar sakte..cuz unlog ka stake dilute ho jayega...Read more
Please don’t Mind hindi language in answer :
Kloth Said that debt ka portion bahut jayda ho gya h…itna zayda ki debt to equity ratio increase ho gya hai….toh usko same proportion mein laane k liye kya karein? Ofcourse equity issue karo…par nai kar sakte..cuz unlog ka stake dilute ho jayega… pecking order theory —– retained earnings ko increase karo and usko usr karo debt repay karne k liye….wahi kiya h kloth bola dps ab se 20% h…5 saalo tak …toh relatively co. Ka debt aane wala 5 saal girega rahega…i.e. relatively kam rahega…5 saal tak…cuz retained earnings up therefore equity apne aap increase hoga….toh equity apne aap return kam mangega…i.e. ke will be reduced.
Question pucha hai…kya aisa hona possible hai? MM model without taxes ka world mein? Answer is yes, acc to prop 1—- cap structure ka kisi par koi effect nai hota…
Such that Kc remains same —– prop 2.
Prop 2 bolta h…agar ek unlevered firm debt uthya…toh equity jayda mangega…par agar prop 1 true hua…toh kc same ragega…kaise? Debt itna cheaply available h jo kc ko neeche kheechega…and ke upar kheechega…toh net effect same reh jayega…Ab agar aane waala 5 saal mein debt kam hone wala h… relative to equity… therefore D/E ratio will fall over the years ..cuz upar mein debt level same h…par neeche equity is going up cuz of rise in retained earnings…toh
Ke = kc + (kc-kd)d/e
Mein agar d/e neeche gya…toh ke toh neeche jayega hi! Therefore kloth thik bol raha h!
In the equation, Rf + ERP×beta, we take beta of a specific stock and ERP is of the market Say if, reliance's beta is 0.6 and infosys is 0.9 against the sensex (market proxy), so when sensex changes by 1% reliance's stock will change by 0.6% and Infosys by 0.9% Now, imagine the above equation is of tRead more
In the equation, Rf + ERP×beta, we take beta of a specific stock and ERP is of the market
Say if, reliance’s beta is 0.6 and infosys is 0.9 against the sensex (market proxy), so when sensex changes by 1% reliance’s stock will change by 0.6% and Infosys by 0.9%
Now, imagine the above equation is of the world market meaning ERP is related to world market (MSCI WORLD INDEX). So we have to take beta of specific country. so beta of india is 1.2% so id the world market changes by 1%, India’s market (sensex) will change by 1.2%.
Interest expense includes coupon payment +/- discount / premium to par. (Amortisation). Where as the EMI or the schedule according to which you receive payments (see example of fully or partially ammortised bond's example) includes interest component and principal component.
Interest expense includes coupon payment +/- discount / premium to par. (Amortisation).
Where as the EMI or the schedule according to which you receive payments (see example of fully or partially ammortised bond’s example) includes interest component and principal component.
Although option a is correct, but if we see option b is more relatively correct than option a. As we know, only separately identified and /or purchased intangibles are capitalised and if capitalised shown at cost. Where as self generated is expensed. So, there is a fight in option a. But option b isRead more
Although option a is correct, but if we see option b is more relatively correct than option a. As we know, only separately identified and /or purchased intangibles are capitalised and if capitalised shown at cost. Where as self generated is expensed. So, there is a fight in option a. But option b is definitely correct so we go for option b.
And i think you are correct, the question should be least accurate.
Here, they are asking when will business tend to increase their inventory levels means when will inventory level keep on rising. So, option 1 will be correct. During end of recession, sales begins to pick up such that inventory to sales ratio will fall. Business will realise this and they will beginRead more
Here, they are asking when will business tend to increase their inventory levels means when will inventory level keep on rising. So, option 1 will be correct.
During end of recession, sales begins to pick up such that inventory to sales ratio will fall. Business will realise this and they will begin production. Hence, inventory level will TEND to rise.
They are asking what is P(15≤X≤25) l, since x is a discrete variable the probability of each value occurring is 0.25 (see the difference between cumulative probability). So, Probability will be p(15)+p(20)+p(25) = 0.25+0.25+0.25 = 0.75.
They are asking what is P(15≤X≤25) l, since x is a discrete variable the probability of each value occurring is 0.25 (see the difference between cumulative probability). So, Probability will be p(15)+p(20)+p(25) = 0.25+0.25+0.25 = 0.75.
See, question is asking fund ko capital gain ya loss kab hoga? Open end fund ka case mein investor redemption k kiye fund k paas aata h toh usko uska paisa dene k liye fund ko apna kuch assets bencna padta h to meet the redemption pressures. Close ended fund actively manage hota h...toh aise bhi usmRead more
See, question is asking fund ko capital gain ya loss kab hoga? Open end fund ka case mein investor redemption k kiye fund k paas aata h toh usko uska paisa dene k liye fund ko apna kuch assets bencna padta h to meet the redemption pressures.
Close ended fund actively manage hota h…toh aise bhi usme capital gains ya loss hoga hi.
And ETF ka case mein investor log exchange mein units trade kar sakta h dusra investors k saath so, fund k upar koi pressure nai h assets bechne ka.
See, if you use BGN mode the you will use N as 10, because we want to compute pv at t= year 1...and using BGN mode pv come at time t i.e. year 1. Using end mode pv comes one period back at t-1 i.e. year 0 i.e. today, so we have to add back 2000 to bring it to year 1.
See, if you use BGN mode the you will use N as 10, because we want to compute pv at t= year 1…and using BGN mode pv come at time t i.e. year 1.
Using end mode pv comes one period back at t-1 i.e. year 0 i.e. today, so we have to add back 2000 to bring it to year 1.
We take expected production capacity rather than expected production in years to come. Here it is given expected production in 9 years so, 2,00,000*9 = 18,00,000 which does not include 1,00,000 units of this year. So, we took 19,00,000 units.
We take expected production capacity rather than expected production in years to come. Here it is given expected production in 9 years so, 2,00,000*9 = 18,00,000 which does not include 1,00,000 units of this year. So, we took 19,00,000 units.
MULTINATIONAL OPERATIONS
Question is simply asking how much change in sales was from 2014 to 2015 in US region in SEK terms i e. In SEK currency using Lars's observations. Lars's observation 1 explanation : According to lars in 2014, sales per store in SEK TERMS (meaning sales made in sweden and in swedish currency) i.e. seRead more
Question is simply asking how much change in sales was from 2014 to 2015 in US region in SEK terms i e. In SEK currency using Lars’s observations.
Lars’s observation 1 explanation :
According to lars in 2014, sales per store in SEK TERMS (meaning sales made in sweden and in swedish currency) i.e. sek 4653/99 = sek 47 million is equivalent to sales per store in US (note that it is not in USD terms so we’ll have to convert SEK 47 million in USD to find first find the sales per store in USD terms) which is 47/6.53 = $ 7.40 million per store.
Therefore, SEK 47 million = $7.40 million. And hence sales per store in 2014 in US region is $7.40 million.
Lars’s observation 2 explanation :
According to Lars in 2015, 2014 and 2015 ka sales per store is same but in USD terms i.e. sales per store in 2014 and 2015 is $7.40 million but question SEK terms mein pucha hai so we’ll again have to convert 7.40 million to sek using average rate of 2015 which comes to 7.40 × 7.595 = sek 56.30 per store.
Now change in sales from 2014 to 2015 is — (56.20-47) × 80 = sek 736.24 or 737 million
See lessDividend ans share repurchase
Please don't Mind hindi language in answer : Kloth Said that debt ka portion bahut jayda ho gya h...itna zayda ki debt to equity ratio increase ho gya hai....toh usko same proportion mein laane k liye kya karein? Ofcourse equity issue karo...par nai kar sakte..cuz unlog ka stake dilute ho jayega...Read more
Please don’t Mind hindi language in answer :
Kloth Said that debt ka portion bahut jayda ho gya h…itna zayda ki debt to equity ratio increase ho gya hai….toh usko same proportion mein laane k liye kya karein? Ofcourse equity issue karo…par nai kar sakte..cuz unlog ka stake dilute ho jayega… pecking order theory —– retained earnings ko increase karo and usko usr karo debt repay karne k liye….wahi kiya h kloth bola dps ab se 20% h…5 saalo tak …toh relatively co. Ka debt aane wala 5 saal girega rahega…i.e. relatively kam rahega…5 saal tak…cuz retained earnings up therefore equity apne aap increase hoga….toh equity apne aap return kam mangega…i.e. ke will be reduced.
Question pucha hai…kya aisa hona possible hai? MM model without taxes ka world mein? Answer is yes, acc to prop 1—- cap structure ka kisi par koi effect nai hota…
Such that Kc remains same —– prop 2.
Prop 2 bolta h…agar ek unlevered firm debt uthya…toh equity jayda mangega…par agar prop 1 true hua…toh kc same ragega…kaise? Debt itna cheaply available h jo kc ko neeche kheechega…and ke upar kheechega…toh net effect same reh jayega…Ab agar aane waala 5 saal mein debt kam hone wala h… relative to equity… therefore D/E ratio will fall over the years ..cuz upar mein debt level same h…par neeche equity is going up cuz of rise in retained earnings…toh
Ke = kc + (kc-kd)d/e
Mein agar d/e neeche gya…toh ke toh neeche jayega hi! Therefore kloth thik bol raha h!
See lessInternational CAPM
In the equation, Rf + ERP×beta, we take beta of a specific stock and ERP is of the market Say if, reliance's beta is 0.6 and infosys is 0.9 against the sensex (market proxy), so when sensex changes by 1% reliance's stock will change by 0.6% and Infosys by 0.9% Now, imagine the above equation is of tRead more
In the equation, Rf + ERP×beta, we take beta of a specific stock and ERP is of the market
Say if, reliance’s beta is 0.6 and infosys is 0.9 against the sensex (market proxy), so when sensex changes by 1% reliance’s stock will change by 0.6% and Infosys by 0.9%
Now, imagine the above equation is of the world market meaning ERP is related to world market (MSCI WORLD INDEX). So we have to take beta of specific country. so beta of india is 1.2% so id the world market changes by 1%, India’s market (sensex) will change by 1.2%.
So, if world ERP × India’s beta = India’s market
So, world ERP = India’s market/India’s beta
See lessAmortization
Interest expense includes coupon payment +/- discount / premium to par. (Amortisation). Where as the EMI or the schedule according to which you receive payments (see example of fully or partially ammortised bond's example) includes interest component and principal component.
Interest expense includes coupon payment +/- discount / premium to par. (Amortisation).
Where as the EMI or the schedule according to which you receive payments (see example of fully or partially ammortised bond’s example) includes interest component and principal component.
See lessSsei
Although option a is correct, but if we see option b is more relatively correct than option a. As we know, only separately identified and /or purchased intangibles are capitalised and if capitalised shown at cost. Where as self generated is expensed. So, there is a fight in option a. But option b isRead more
Although option a is correct, but if we see option b is more relatively correct than option a. As we know, only separately identified and /or purchased intangibles are capitalised and if capitalised shown at cost. Where as self generated is expensed. So, there is a fight in option a. But option b is definitely correct so we go for option b.
And i think you are correct, the question should be least accurate.
See lessBusiness cycle
Here, they are asking when will business tend to increase their inventory levels means when will inventory level keep on rising. So, option 1 will be correct. During end of recession, sales begins to pick up such that inventory to sales ratio will fall. Business will realise this and they will beginRead more
Here, they are asking when will business tend to increase their inventory levels means when will inventory level keep on rising. So, option 1 will be correct.
During end of recession, sales begins to pick up such that inventory to sales ratio will fall. Business will realise this and they will begin production. Hence, inventory level will TEND to rise.
This will happen in the trough part of the cycle.
See lessProbability Distribution
They are asking what is P(15≤X≤25) l, since x is a discrete variable the probability of each value occurring is 0.25 (see the difference between cumulative probability). So, Probability will be p(15)+p(20)+p(25) = 0.25+0.25+0.25 = 0.75.
They are asking what is P(15≤X≤25) l, since x is a discrete variable the probability of each value occurring is 0.25 (see the difference between cumulative probability). So, Probability will be p(15)+p(20)+p(25) = 0.25+0.25+0.25 = 0.75.
See lessInstitute question
See, question is asking fund ko capital gain ya loss kab hoga? Open end fund ka case mein investor redemption k kiye fund k paas aata h toh usko uska paisa dene k liye fund ko apna kuch assets bencna padta h to meet the redemption pressures. Close ended fund actively manage hota h...toh aise bhi usmRead more
See, question is asking fund ko capital gain ya loss kab hoga? Open end fund ka case mein investor redemption k kiye fund k paas aata h toh usko uska paisa dene k liye fund ko apna kuch assets bencna padta h to meet the redemption pressures.
Close ended fund actively manage hota h…toh aise bhi usme capital gains ya loss hoga hi.
And ETF ka case mein investor log exchange mein units trade kar sakta h dusra investors k saath so, fund k upar koi pressure nai h assets bechne ka.
See lessCFA L1 Quant TVM Doubt
See, if you use BGN mode the you will use N as 10, because we want to compute pv at t= year 1...and using BGN mode pv come at time t i.e. year 1. Using end mode pv comes one period back at t-1 i.e. year 0 i.e. today, so we have to add back 2000 to bring it to year 1.
See, if you use BGN mode the you will use N as 10, because we want to compute pv at t= year 1…and using BGN mode pv come at time t i.e. year 1.
Using end mode pv comes one period back at t-1 i.e. year 0 i.e. today, so we have to add back 2000 to bring it to year 1.
See lessInstitute question
We take expected production capacity rather than expected production in years to come. Here it is given expected production in 9 years so, 2,00,000*9 = 18,00,000 which does not include 1,00,000 units of this year. So, we took 19,00,000 units.
We take expected production capacity rather than expected production in years to come. Here it is given expected production in 9 years so, 2,00,000*9 = 18,00,000 which does not include 1,00,000 units of this year. So, we took 19,00,000 units.
See less