[vasvi]

Got it sir, Thank you so much.

[vasvi]

Also(2nd), when they question says just beta, is it asset beta or equity beta?

[vasvi]

Own figure rule, sir.

Alright sir. Thank you so much 😀

[vasvi]

Great!

Thank you so much 😀

[vasvi]

Oh, alright. Got it!

Thank You so much 🙂

[vasvi]

Got it !!

Thank you so much 😀

[vasvi]

Doubt : 2
For the purpose of issue cost, why do we consider the cost of the project as 14,488? 14m is CAPEX but total working capital is 1096, so it idly should be 15,096.

[vasvi]

Got it!

Thank you so much 😀

[vasvi]

Understood!

Thank you so much Mr. Moffat ! 😀

[vasvi]

I’m so sorry, in the question Tisa co, how do we find PVr for the purpose of MIRR calculation?

[vasvi]

Same Question,

1) We’ve to find the AF for 4th year onwards to 15th year.
My way of doing is AF(year 1 to year 15) MINUS AF(yeat 1 to year 3), leaving us with the annuity factor of year 4 to 15. Can we use this?

2) Why isnt $.97m multiplies with 12, for 12 years that the cash flows in for?

[vasvi]

Same question

MIRR, how do we find PVr?

[vasvi]

Tisa Co.

Elfu Co Asset beta of other activities = 1,25 x $360m / (360+76.8 x (1-0.25))=1.078

My question is where did the $360m come from?
$76.8m looks like the 80% of $96m, but nothing was done with $96m w.r.t. Elfu co’s portfolio asset beta calculated just before that.

I hope my question makes sense.

Thank you.

[vasvi]

Alright!

Thank you =D

[vasvi]

Got it!

Thank you so much !

[vasvi]

I meant to ask, if one of them is positive and the other is negative.

Your reply suggests they both will be same each point in time. I guess ive got the answer.

Thank you 😀

[vasvi]

Alright, Alright.

Thank you so much

[Author]

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