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How did everyone get ABCD on the projects? Coz when I worked out combinations and had 5 of them and mine was DBE? I think and the NPV was around 12.8? ??? Something like that
@cioccolatostars said:
What was the terp? Was it 9.8?Think I may have got 9.31
TERP is
4 shares @ $10 = $40
1 share @ $10*(1-0.1) = $9
so 5 shares @ $49, I got TERP = $9.8For divisible project:
Project PI
D 3.1
A 3
E 2.8
B 2.6Project C and E are mutually exclusive, so E ranked 3rd, so we don’t choose C (although it is ranked 4th according to PI), and total maximum NPV is $13.3m.
My NPV for the project is around $1.186m, and it is financially acceptable, because it maximizes shareholders’ wealth. Do you think my result is wrong?
Do u think market capitalization gives the maximum valuation of a company?
I don’t P/E ratio is reciprocal of Earning yield is correct answer.
so, I choose market capitalization gives the maximum valuation of a company.
Any idea, please.@sokty said:
TERP is
4 shares @ $10 = $40
1 share @ $10*(1-0.1) = $9
so 5 shares @ $49, I got TERP = $9.8Oh yes. I remember now.
Umm, no! Market capitalisation is the minimum, it’s what they can currently obtain from the market so any bid has to be above that!
@sokty said:
Do u think market capitalization gives the maximum valuation of a company?
I don’t P/E ratio is reciprocal of Earning yield is correct answer.
so, I choose market capitalization gives the maximum valuation of a company.
Any idea, please.It is the reciprocal but I dont remember the question.
Oh, my god, first I think, I would choose that (P/E is the reciprocal of Earning yield) too, but then I remember a question I used to do about it and I decide not to choose it. Damn, I lost 2 marks already.
@trishee said:
Umm, no! Market capitalisation is the minimum, it’s what they can currently obtain from the market so any bid has to be above that!I thought Net Assets/no of shareholders is the minimum.
Anything MCQ or Objective test answer you all want to share? I really want to recall all of my answer if I have answered them correctly or not? I am so worried.
Anyway, the result will be released on Monday, 16th Jan 2017. Hopefully, we all pass.
I think market capitalization could be higher if investors dont have information about future growth plans yet. So i guess the answer would still be pe recipricol.
Net asset valuation is the minimum if they are going to liquidate it! A similar question was in a past paper
@sokty said:
Anything MCQ or Objective test answer you all want to share? I really want to recall all of my answer if I have answered them correctly or not? I am so worried.Anyway, the result will be released on Monday, 16th Jan 2017. Hopefully, we all pass.
Please read my questions on page 4.results released on monday?
DremerSK, I mean, pls do not just write the answer ABC or D, as I don’t remember which letter belongs to which question. What I mean is let recall the question, and try to figure out what answer we have thought for them.
@sokty said:
DremerSK, I mean, pls do not just write the answer ABC or D, as I don’t remember which letter belongs to which question. What I mean is let recall the question, and try to figure out what answer we have thought for them.Sure…but I didnt only do that. I quoted many of my questions again on page 4 because they werent answered.
Ok, for some of your question, I remember now:
– for reduction in working capital, I got sth like about $200k.
– for annual cost of discount, I got 9.49%
–“I believe you were suppose to have used Gordons growth model. So payout was 55% and ROCE was 20% therefore 0.45×0.20= 0.09, 45% being the retained earnings, and from there you just applied 0.45*1.09/2.45+0.09 = … or something along those lines, but I might be wrong.”
I got answer A for this question about 19.4% because, it said they WILL pay dividend, so that dividend already include the growth rate. First I thought, It would be B as well, but when I read the question again, it seems wrong.
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