Thanks for the lecture. In the answer, I saw the market capitalisation are 86.67 and 143.4 in Year 1 and Year 4 respectively. May I ask how to calculate it? Thanks :))

Dear John. For the video at 4:10, the calculation for PBIT, does it should be (11,300-8,700)/8,700, instead of using the number from PAIT (7,550-5,100)/5,100?

Hi John! Thx for the resource and for the particular lecture. @11:10 on the timeline you state that Net assets=Captital Employed (in particular Shareholders funds + long term borrowings). Aren’t Net assets=Total assets less total liabilities? I’m a bit confused. Thx.

Thank you very much for this lecture. Just a question please. We know that maximising shareholders wealth is through increasing share price. And also that profits are different from wealth. Would we not loose marks through commenting on PBIT and PAT

Thanks for the lecture, I need to ask if is it wrong to calculate leverage (Total assets/Equity) instead of gearing(long term debt/equity) for exam purpose? On the above example leverage would be 1,5 while gearing 50% (from leverage we can get 50% easily) but it’s easy to compare the company based on leverage as well.

We use cookies to improve your experience on our site and to show you relevant advertising. To find out more, read our updated privacy policy and cookie policy.OkRead more

hylauivyy says

Thanks for the lecture. In the answer, I saw the market capitalisation are 86.67 and 143.4 in Year 1 and Year 4 respectively. May I ask how to calculate it? Thanks :))

cians says

MV of share x Number of shares in issue

John Moffat says

Correct 馃檪

fatimali says

Mr. John, at 3:07 isn’t the increase in turnover 34.7%?

ceevs92 says

I thought the same also?

John Moffat says

Yes, it is 34.7%. I made a mistake 馃檨

bettyli says

Dear John. For the video at 4:10, the calculation for PBIT, does it should be (11,300-8,700)/8,700, instead of using the number from PAIT (7,550-5,100)/5,100?

bettyli says

Oh, I figured it out that Mr. John corrected it. Never mind!

John Moffat says

I am pleased that you figured it out 馃檪

denis2018 says

Hi John! Thx for the resource and for the particular lecture.

@11:10 on the timeline you state that Net assets=Captital Employed (in particular Shareholders funds + long term borrowings). Aren’t Net assets=Total assets less total liabilities? I’m a bit confused. Thx.

gumeden says

Thank you very much for this lecture. Just a question please. We know that maximising shareholders wealth is through increasing share price. And also that profits are different from wealth. Would we not loose marks through commenting on PBIT and PAT

Ihmant says

Dear John, at 2:47, I think the increase is +34.7%, or is it really 11.9%? BR,I.

denis2018 says

Agree that 34.7%. Thx for noting. Probably the John was a bit nervous. The mistake is rather arithmetic. The formula is correct.

dg1020333 says

Thanks for the lecture, I need to ask if is it wrong to calculate leverage (Total assets/Equity) instead of gearing(long term debt/equity) for exam purpose? On the above example leverage would be 1,5 while gearing 50% (from leverage we can get 50% easily) but it’s easy to compare the company based on leverage as well.