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Hi sir,
Im very confused about why we use 1.5275 to convert $4124236 to £ before dividing it by contract size62500?
Should we use spot rate or futures ratee or lock in rate always to find the number of contracts?Thankyou so much sir for clearing all my doubts .
Hi sir,
In (a) in the case when interest rates increase to 4.99%
how is that it is a loss on futures market (.9455-.9476) when it should be a gain?Similarly in the case when interest rates fall to 3.19
How is that it is a gain on futures market when it should be a loss because the expected price is higher 96.35 ??We are investing $48m , and shouldn’t it be a gain for us if rates increase?
Thankyou in advance sir
Hi sir, i have a few questions on this question.
1. In the irr calculation For fixed rate sterling loan, issue net of issue costs is given 44.48..isnt it supposed
To be 44.93?2. The calculation of the amount raised in the swiss franc loan is 80(1-0.03)/2.298..why is it not [80×100/97]/2.298?
Sir, why have they deducted capital allowance from the profit to calculate the taxable cash flows ? Isn’t it that we add the capital allowance after finding the tax on taxable profit?
Thanks in advanceDear sir ,
I did not get the calculation part for asset beta:1.646 . What is the figure 0.09748 and also the reason why we do the part Vd (1-T)/Ve+Vd (1-T) .I have to Thank you sir because your lectures and the forums have helped me so much to clear all my acca papers!Im currently stuck with p4 though. This is my second attempt. Need your wishes.