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ROMM
1) listed
2) specific dislosures
3) Goodwill- initial mesurement
4) goodwill -subsequent measurement
5) Bank loan- measurement
6) bank loan – disclosure
7) Advertising expenseGuys my approach to pricing was went over all the price factors 1)pricing objectives 2) competitors 3) customers/demand 4) cost 5) controls. Anyone agrees to this?
With the wacc as i mentioned depends on the rates used to calculate the positive and negative value to use in the IRR calculation of the loan
Guys the leading was correct but you all forgot to multiple by the interest rate as it specifically mentioned in the question that it would borrow the money, thus making forward as the cheapest hedging method
Guys the wacc with the introduction od the loan is lower , however the wacc rates differ , other say 10sh ans others 12ish. It all depends on the rates used to find the irr of the loan
Well in the npv calculation i worked with contribution as you couls deduct the variable cost from selling price and the inflate by4.7%
For the company it would cost over a million to do it.messed up the finance saving of the factor though. Took the receivables the company x 80 x 9 and x20 x 7
Sensitinity analysis wrote the definition and coupe of point on uncertainty and risk
The forward was 210 something snd the money was a little higher so beneficial option was the forward
used 8 as interest and discount rate and the conversion value of 131..11 . gave me a mv of 118 something
how on earth di you get the 111,98 for the market value?
what did you use as the discount rate? and what was the interest figure>?Guys if you inflate the selling price variable and fixedso gives the figures shown on the original evaluation. So where should you inflate exactly?the problem.was with the interest and the depreciation. Anyone agreeing on any of this?
Correct! You multiply the risk premium with the beta factor which gave a cost of capital of 10.9 if i remember correctly
No.idea actually as i talk a little about time in that they will go for the rights issue of they need now for liquidity problems, a company will go for equity finance if the share prices are high and of course financial gearing id also a reason for equity finance.
Guys in question 5 part about rights issue. Did anyone talk about, time, gearing, and share prices? 🙁
Guys the inflation rate was per year not in current price terms. So you inflate from year 2 not 1. If it was at current price then t1 would have been correct
Depreciation? What depreciation are you talking about. You calculate capital allowances for that
