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How is lead payment calculated ?? I used the spot rate to calculate it. what did all of you do?
Thanks to my God…I passed P2 with 52 marks. Have heard that P2 is tough to pass in the first attempt, by God’s grace got through it. 🙂
Got 51 marks for P1. 🙂 I did self-study, used open tuition lectures.
Never thought I would pass. Thank God.
Thank you Sir Mike for your advices!
God Bless you!This doubt is from the lecture impact of financing, example 2.
part b, There it is mentioned thus: ‘without debt, wacc = 20%, with debt, wacc = 18 something%.’I was trying to figure out that wacc .
equity-70% , debt- 30%cost of capital of equity- 20%
cost of capital of debt- 3.5%
[kd=i(1-t)/P0 = 1.5(1-0.3)/30]so wacc of equity= 14, wacc of debt= 1.05
Total wacc= 15.05%I am not getting 18% or so….:(
Fully understood. Thank you so much. I enjoy all your lectures. I feel like saying it a million times. Your explanation is so logical..which is what I like the most!
Thanks so much again.Sir, where all do we assume debt is risk free? Is it only in ‘ ungearing betas’ and ‘Modigliani’ questions?
Now I got it . I seem to have forgotten the basics already (haha….)
Thanks so much Sir.
Thank you Sir :). But this gain as a result of increase in fair value is fictitious and it should come in the balance sheet. Why is it then in the income statement?
It is also similar to an upward movement of an asset, like revaluation of plant, am I right?
Sir, why do we have to cancel out the inter- group transactions? cash-in-transit is the same as inter-group transaction, am I right?
Sir Mike, I listened to the dividends lecture. In working 3- cons. ret. earn- the proposed div. payable is clear to me. both Liamonas and Kristine have proposed div. to pay to each other 16000 and 10000 respectively.
My doubt is–In the proposed div. receivable, why is the dividend eligible for Kristine to be recd. not added to her account? Also, how did you know that Liamonas have to receive 9000 only ? Is it from her share 90%? Then why Kristine is not receiving her share?