justified price to book is always calculated on E1 and not E0 , please do check the formula derivation that is why i was confused and so i asked , and earning growth is given in the question so e1 can also be calculated from the question. and justified price to book is always po/bo. only explanationRead more
justified price to book is always calculated on E1 and not E0 , please do check the formula derivation that is why i was confused and so i asked , and earning growth is given in the question so e1 can also be calculated from the question. and justified price to book is always po/bo.
only explanation that i can think of is that this book value is beginning book value and not ending book value, am i right?
In question number 2 : what is the answer option A or option B? The book says answer is option A, my question is why not option B? Is it because we see option cost from the viewpoint of the issuer of the bond ?
In question number 2 : what is the answer option A or option B?
The book says answer is option A, my question is why not option B?
Is it because we see option cost from the viewpoint of the issuer of the bond ?
in deriving the formula of justified p/b ratio we use E1/B0 but here they have used E0/B0 to get roe , is this wrong?
justified price to book is always calculated on E1 and not E0 , please do check the formula derivation that is why i was confused and so i asked , and earning growth is given in the question so e1 can also be calculated from the question. and justified price to book is always po/bo. only explanationRead more
justified price to book is always calculated on E1 and not E0 , please do check the formula derivation that is why i was confused and so i asked , and earning growth is given in the question so e1 can also be calculated from the question. and justified price to book is always po/bo.
only explanation that i can think of is that this book value is beginning book value and not ending book value, am i right?
See lessIf persistence factor is 0.6 then why is 2038 residual income calculated as roe * b rather than 2037 residual income * persistence factor ie 23.8664*0.6?
i have edited and uploaded the right image
i have edited and uploaded the right image
See lessis option cost always seen from the view point of issuer in the formula :option cost= z spread-OAS
In question number 2 : what is the answer option A or option B? The book says answer is option A, my question is why not option B? Is it because we see option cost from the viewpoint of the issuer of the bond ?
In question number 2 : what is the answer option A or option B?
See lessThe book says answer is option A, my question is why not option B?
Is it because we see option cost from the viewpoint of the issuer of the bond ?
under this question instead of calculating OCI ( other comprehensive income ) under US GAAP by Total Periodic Pension Cost – Cost in P/L , i calculated the amount directly by adding past sevice cost and acturial looses ( increase in obligation due to changes in accturial assumption ) which comes out to be 120 + 619 = 739 which is different from 643 , why so??
thank you
thank you
See lessin riding the yield curve stratergy, the term structure should not evolve as per the forward rates, but in this case in country A ,it will according to tyos expectation then how is country A the correct answer?
are u sure it is incorrect ?because i have come across many questions like this and i am getting all of them wrong .
are u sure it is incorrect ?because i have come across many questions like this and i am getting all of them wrong .
See lessequity basics
Even if we get dividend , we will have to reinvest those dividend at cost of equity to have a cagr return = cost of equity right ??
Even if we get dividend , we will have to reinvest those dividend at cost of equity to have a cagr return = cost of equity right ??
See lessThe answer to question 3 is given as 289 million assuming that the growth rate in ebit is same as growth rate in fcff , how can this be true? please explain
Thanks for Clarification
Thanks for Clarification
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