dannyshao replied to the topic what is the difference between total net asset and shareholders' fund? in the forum P4 Advanced Financial Management Forums 7 months, 1 week ago
Yes, I agree with that “Shareholders funds” does not include intangible assets which is included in the net assets. Thanks
Thank you sir for your replies.
But I do NOT think that all companies will ALWAYS in need of future money. For a theoretical example, if a company only raises equity capital one time, and will never raise more money in future because they are operating very successfully, and can satisfied by own funds instead of paying too much dividend, thus…[Read more]
Dear Sir, thank you for your reply.
Regarding the dividend, a company always has the right on deciding when and how much they will be paying the dividend, even not paying. I mean dividend is always NOT compulsory comparing with debt interest payment. Also shareholders investment return can come from the increase on the share price itself even…[Read more]
Maybe a stupid question, but I still can not convince myself.
They always say that the equity cost is most expensive. But I think a company never need to repay its shareholder, not like debt holder, the interest payment are really cash outflow yearly. Even if the company goes bankruptcy, its shareholders still have the latest right…[Read more]
dannyshao replied to the topic ** P4 Exam Results June 2013 and Genius Hunt Competition ** in the forum P4 Advanced Financial Management Forums 8 months, 1 week ago
72 I still can’t believe it.
Hi guy, any hint or advice on how you can score such high? I failed sadly again. Cheers
Could you please advise:
If a company considering a loan in future and hope to lock up risk, it can buy some IFR contracts, but can’t understand what ACTUALLY it is buying? is it buying the RATE? how come a loan’s interest rate can be bought? Also why IFA are generally sold in a exchange (such as CME) not in a bank?Because I have no any…[Read more]
Simply saying, the annuity should be discounted an extra FOUR years not 3 years as he has done, coz the cash flow starts at END of year 4, not beginning of year 4!
Thank you very much sir for your reply! But my point was not at the annuity factor (7.191, and I understand that thoroughly).
My arguement is the Present Value factor he used on calculating “the operating cash inflows commencing at END of year FOUR and last for 15 years”. I think, the PV factor should be 1.11^(-4), not 1.11^(-3) he used. The…[Read more]
Last December exam, Q4(a) asked for calculating the NPV of PDur05.
The suggested answer is:
When calculating the PV of “the operating cash inflows commencing at END of year FOUR and last for […]
dannyshao replied to the topic Arguing on the suggested answer for Q4(a) Dec 2012 in the forum P4 Advanced Financial Management Forums 1 year ago
If cashflow at the END of year4 is using” ^(-3)”, could you tell me what to use if cash flow on START of year4?
dannyshao started the topic Arguing on the suggested answer for Q4(a) Dec 2012 in the forum P4 Advanced Financial Management Forums 1 year ago
Q4(a): For calculating the NPV of PDur05.
When calculating the PV of “the operating cash inflows commencing at END of year FOUR and last for 15 years”. The suggested answer is: $970,000 x 7•191 x […]