[wlta]

Passed with 54 at first attempt, thanks to opentuition resources and BPP exam kit. Thanks to Mr.John Moffat for his clear explanation.

[wlta]

Hi sir,
Why in this question do we add capital allowance to expenses to get taxable cash flow and after that add back only the tax saving on CA to after tax cash flow.
I thought there r two ways to calculate after tax cashflow which is: 1. Do not include capital allowance when calculate taxable CF and add only tax saved on CA.
2. Include CA when calculate taxable CF and after tax adjustment add back CA since it is not a cash flow.
Correct me if I’m wrong

[wlta]

Dear sir,
How to calculate this expected spot rate in 6 mths time?
Thanks.

[wlta]

Can u enlighten me where this €21.84m get?

[wlta]

Hi sir,

The terminal value if calculated as 6.2m-1.2m inflated by 1.08^5 and why not 6? As the terminal value is received at the end of year 6.

Thanks.

[wlta]

Hi John,

In this particular question of Ennea, I cannot get how they get the current asset value and retained earning value for 3 proposals.

Can kindly explain me.

Thanks a lot.

[wlta]

How to know the premium is payable in dollar John? Thanks for ur kind explanation ?

[wlta]

Dear John,
In this question, when calculating the premium for the option, why did they use spot rate of 1.5475 and not 1.5510.

[wlta]

Hi Mr.John,
Can you kindly answer me in this question, why they assume that WACC is a nominal rate and turn it into real rate.
Thank you.

[wlta]

Thanks a lot !

[wlta]

Thanks John.

Can you explain when they calculate Net Outcome, Overhedge on forward market, where is this 1883 come from and why it is divided by 1.5337 and again where does it come?

Sorry I’m all confused.

Thanks, I will watch you lecture also.

Looking forward!

[wlta]

Dear Sir,

Can I know in this question,Polytot (6/04) , how did they calculate the lock in rate 1.5353.

In examiner’s answer, it showed 1.5275+78 ticks where the 78 ticks got by 235 ticks divided by 3 (it said it is the 4 months’ time basic).

I don’t get why it was divided by 3 and the logic behind the calculation of lock in rate.

Looking forward to hearing from you.

Thanks in advance!

[wlta]

Thanks a lot! 🙂

[wlta]

Hi sir,

Good day to you.

Can I know how they get the exchange rate for six years when exchange to euro to dollar.

And why the variable cost and fixed cost that were in current prices no need to inflated?

Looking forward to hearing from you.

Thanks.

[wlta]

I can only see the question said ” Fodder Co’s sales revenue will grow at the same average rate as the previous years. ”

Is it the assumption that the operating profit will grow at 6%.

Thank you

[wlta]

Thank you sir

[wlta]

And how they calculate the operating profit of Fodder for four years?

[wlta]

Dear John,

When calculating the premium required to acquire Fodder ,how does the equity value $36086000 get?

Thanks,

[wlta]

I kinda understand how they get the numbers now sir. Thanks to ur lecture note. But I would like to know why the call price have to be greater than put strike price. Sorry if it sounds stupid.

[wlta]

Hi John,
I tried to read the lecture notes of this topic interest rate collar but I am having difficulties to u derstand. can you please explain about this question of how they get call strike price and put strike price and how they calculate to get the premium.
Thank you and looking forward to hearing from you.

[wlta]

Thank you John for your answer. That is really helpful. Thanks a lot!

[wlta]

Dear John,

In this particular question, May I know how the interest payable is calculated and how to calculate the outstanding loan at the start of the year.

Thanks.

[wlta]

Dear John,

Can you please tell me why the dividend have to be discounted? Is it not present value?

Thanks a lot and looking forward to hearing from you.

[wlta]

Dear John,

I would like to know if I get d1 value 1.6482, can I round to 1.65 and use the table to get N(d1) and since it is positive plus with 0.5 and the same way goes for d2.

Do I really need to go through look to 1.64 and 1.65 and then get the value? I am not really sure how to do this and hence can I just round up. Will it affect my exam marks?

Thank.

[wlta]

Thank you John.
Can I say 6 % bond is 1.5m per year and in five years is $7.5m.
And for 5%, is $6.7398m to pay more.

Hence, can say 6% bond is slightly more expensive?

[Author]

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