[chamkya]

Also how is the terminal value arrived and why it is not taxed.
Sir what is the difference between realisable value and residual value in this type of question.

[chamkya]

Sir , does the share price reflect only equity portion or does it reflect debt portion too.If it does then how should we know and how does it effect in acquisition.

My previous question is pending too .

[chamkya]

june 2011 (Q) 1a

in determining the cost of capital of fodder , it has used the interest rate 9%(coupon) as cost of debt .Is it correct to do that and cant we use FCFE for the valuation instead.

[chamkya]

2011 dec (Q) 4 b
At the end of question it has stated that tyche company will repay 3m of the outstanding loan at the end of the next 5 yr from the cash flows generated from its business activity, but i dont think it has deducted from its cash flow generated in the ans.

[chamkya]

sir, what is the difference between sensitivity analysis and simulation?

[chamkya]

(1+i)=(1+r)(1+h)
the above relationship applies in all economies and can be extrapolated to mean that the interest rate differentials in the long term equate to inflation rate differentials over the same period.

Sir, what does the above statement means?

[chamkya]

Thank you for explanation.

If a company acquires another company what will happen to the debt portion of the acquired company.

[chamkya]

SIr, can you explain me the effects of high gearing for a company in context of market reaction and also how does market contagion and reserve currencies influence exchange rates .

[chamkya]

How about GTG Kit question no 27(Partsea) (a), the remitted amount has nullified the tax allowable depreciation in the NPV computation before taking it for additional tax. I think other questions has also done the same.

[Author]

Posts