[Katz]

Hi John,

In Sigra co (Dec 12), they have specified to calculate the % gain on a Dentro co share, which means on a per share basis. What if I calculate the % gain on a Dentro co equity value rather than on a per share basis. Will I get penalised because the answer in both the ways is the same.

[Katz]

Hi John, but in Charborough co , even though the question says to find the impact on forecast statement of financial position, the adjustments such as return on assets, interest saved on loans are ignored. Can u pls clarify this. I’m stuck here.
Thanks

[Katz]

My doubts got cleared as I cross checked the question and answer again. Thanks

[Katz]

Hi John,
I am halving 2 doubts in this question:
First – while calculating the revised profit of the Eview cinemas , why profit lost on sale of ev clubs amounting to 454 is ignored?
Last question is why profit on sale of ev clubs is not considered while calculating the revised profit of the Eview cinemas?

Thanks

[Katz]

Hi Mr.John
In Blipton International question, how to know which is home and which is foreign currency?

[Katz]

But another question I am having here is in the NPV calculation. Once the cash flows are converted into USD we are directly calculating the NPV of the cash flows in USD but after converting the cash flows in USD why aren’t we considering the excess taxes in USD?

[Katz]

Query solved as they clearly mentioned in the question that the following revenues and costs apply to the first year of operation. Hence we have not inflated cash flows pertaining to year 1.

[Katz]

Sure John

[Katz]

Thanks for the clarification

[Katz]

Hello Mr. John,

My query in this question is in calculating the receipt (under-hedged amount). In the answer they derived the Receipt = CHF50,000 x 1·0358= $51,790. But can I know the reason why CHF50,000 was multiplied with 1·0358?

I think that CHF50,000 needs to be multiplied with six months higher forward rate of $1.0380, right?

[Author]

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