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I used average receivables because the closing receivables does not give a true picture or accurate figure due to high year end balances.
I think even in the lectures on open tuition it was always advised to use average receivables once provided. But then again that was for F5 lol.
I guess the same holds true for F9.
@aagshin said:
The same question is also interesting for me. i calculated for 10 years. There wasnt enough space in my answer blank for 10 years but I did it))))
Dont know right or not)) Was it suppose to be for 4 years??There is no need to use 10 years. The depreciation is linear,
so NPV of tax benefit = 50mln / 10years * 25% * annuity@10years.One Mcq was about working capital element
I chose sales wasn’t working capital element.
Other Mcq about calculating cash cycle .
There was one with redeemable preference share part of equity ?
In q 31 with Wacc reserve to be included or not .?
I didn’t .I chose economic and transaction risk.
Discounted payback 2.4
I think I chose avg receivable but don’t remember nowPayback 2.4
Not wc – sales
For the wacc convert or redeem were we meant to calculate the cost of debt for both and use the lowest?!
@mfreed said:
i think g=9%?
44*1.09/416+9% = 20.5%I remember doing same way
In the Wacc debt was redeemable at 10 yrs if not converted at 8 yrs for 11 shares
I got confused there@kanchandhankar said:
One Mcq was about working capital element
1. I chose sales wasn’t working capital element.
2. Other Mcq about calculating cash cycle .
3. There was one with redeemable preference share part of equity ?
4. In q 31 with Wacc reserve to be included or not .?
I didn’t .1. agree
2. inventory + receivables – payables.
3. I put “NO” because logically it is exactly the same as debt.
4. I added reserves to equity, i.e. included.What did you guys get for the mv for ordianry shares in WACC..i changed my answer to the 50 million x the share price and ignored the nominal value of the shares (0.25) i think.
@windtalker53 said:
I think it was customers will buy from abroadI chose same
@elenarus said:
1. agree
2. inventory + receivables – payables.
3. I put “NO” because logically it is exactly the same as debt.
4. I added reserves to equity, i.e. included.I read on open tuitions in a reply by John Moffat .
when we are calculating Wacc on mv , mv of equity effectively already includes the reserves@kanchandhankar said:
I remember doing same wayWhy did you use 9% ?
We should calculate the increase rate for dividend:
today’ dividend = 0.20, 5 years ago dividend = 0.17.
rate approximately = 4.1% (0.17 * 1.041^5 = 0.20)Am I not right ?
@elenarus said:
Why did you use 9% ?
We should calculate the increase rate for dividend:
today’ dividend = 0.20, 5 years ago dividend = 0.17.
rate approximately = 4.1% (0.17 * 1.041^5 = 0.20)Am I not right ?
Actually u r right
I guess m being confused here.
I did use historic dividend to calculate dividend growth but don’t exactly remember what was my answer
If latest div was .20 and first was .17
U r absolutely right it will be 4.146GUYS! WHICH IS THE MOST RISKY???
bonds?
ordinary shares?
cerificates of deposit????
@jmmyjimmy said:
GUYS! WHICH IS THE MOST RISKY???My answer was ordinary shares
But m not sureI put ordinary shares.. was unsure on what certificates of deposit are?!
Damn I forgot about other loans in sofp too and went purely off the paragraphs!!!
@kanchandhankar said:
Actually u r right
I guess m being confused here.
I did use historic dividend to calculate dividend growth but don’t exactly remember what was my answer
If latest div was .20 and first was .17
U r absolutely right it will be 4.146There will be 4 period not 5
If I m right ?@kanchandhankar said:
I chose the same (ordinary shares as the most risky).
thanks, my reply was shares as well.
i remember section b question about money market vs forward. i had answer around USD 3k…
there was also the question about investors, who behave rationally regarding the news on the company. does anyone remember given options?
I just read certificate of deposit are cash equivalent inv
Equity inv are riskier than bond and cash investment
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