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Friend, Corded Vacuum Cleaner had a lower market share with declining demand. Do you think these are OK for assessing the product as being “cash caw”?
Corded Vacuum Cleaner (low share and declining demand)= Cash Cow???
@ashishhegde said:
Remuneration of directors
1. Enough to attract, retain and motivate, without being excessive.
2. Significant proportion should be performance-related.
3. Should consider industry pay levels.
4. NED remuneration should not be performance-related, but should reflect time
involvement of the role.
5. If a director is removed before the end of contract, provisions should be in place
to ensure they are not over-compensated for failure.
6. Notice periods no longer than 1 year.This is an extract from LSBF notes.
The fourth point should explain everything about the NED pay mcq.the 4th Option seems to be not correct
The UK Corporate Governance Code states that the board and shareholders should determine the NEDs’ remuneration. NEDs’ remuneration consists of a basic salary or fee with NO PERFORMANCE related element.
Ken Garrett
Keymaster@tessa, do you remember the MCQ in section B?
1st 5 questions was about forex/exchange rates
2nd 5 questions was about NPV- payback period
3rd…..????????@ashishhegde said:
I picked $50 too
but now i feel the answer is $45
Cuz usually the market value is on Ex-Int basisIf i try to remember the question it said
“$5 Interest was yet to be paid”
So yeah
I think i messed it up by choosing 50. :/Ashish, please can you remember the exact terms of the question. we would better to ask it to the Tutor. Very easy and tricky question
@abbyjones said:
Hi, I think I got $50. I did the dividend ($5) divided by the cost of capital (10%) as it was in perpetuity. No idea if that’s right though.was there any answer option with the 45 $. Can anybody remember?
No friend. I am talking about absolutely werbal MCQ question with NO CALCULATION: about leasing 😉
i remember such an option for the question: cost of debt is the interest rate after taxed.
Please dont forget!!!
Question asked about leasing- but NOT asked sharply about financial or operational leasing.I think there was no any period with a negative TAXABLE PROFiT. Negative amounts was due to after paying taxes in arrears (imho year 3 and 4)
Yeap, i might be wrong about irredeemable or pref. share. But i am 100% confident in the absence of any taxes )))))
Q22 was about valuation basises:
Answers was:a) Net realisable value- when company has no intention to liquidate
b)…
c)…d) Replacement value when it is going to liquidate
? exactly remember a question where it asked to calculate cost of debt for 8% pref. share. Nominal value was .5 and MV was 10% greater.
Hi
? think you have overlooked trade receivables in the question.
Here says: company had (credit) sales of $15m and trade receivables were $ 2,466K.$15m x 60 days/ 365 days ? $2,466K
@syntyche97 said:
Could you tell me the exact npv answer?
if you rememberseeing here comments, i am getting a bit sceptic about my NPV answer. It was more than 1.6 m $ (with a incremental fixed costs and tax depreiation benefit starting from the year 0
@aproop said:
I guess it asked for decrease in Sales % to get NPV 0not decrease in Sale %…
It asked decrease in sales VOLUME to get 0 NPV
@aproop said:
It was 7.7% (based on my calculations)I think it was 13 or 31%
Sales sens.= NPV/ contrubition
@pinkyjovin123 said:
In Mcqs Roce(avg invest)
What was its answer ??Change in sales volume would lead NPv to zero??
What is its answer??It asks sales volume sensitivity
production capacity is 850 000 unit per year.
Investment cost is 3 200 000 $.
unit price is 3.1 $ (with 3 % inflaton)
variable cost per un it is 1.1 $ (with 6 % inflation)
Fixed costs are: 110 000, 205 000, 330 000 and 330 000 $
After tax cost of equity is 10%
corporate tax is 20%
reducing balance dep. rate is 25%
Depreciation tax allowance could be claimed at the START of first yearCalculate NPV and comment on acceptability
