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Can you ask these questions from sir john.so everybody at least has an idea how many of them are correct.
it was nice, my 2 questions in section C were NBV calculation which was straightforward although i forgot to draw my conclusion 🙂 it has had 12 degrees as far as i remember and second question in section c was undercapitalization case with its related ratios. both were good thank god
I had the same paper as you I think. I added back the amortization and depriciation that had been subtracted. The capital allowance confused me so i just charged a full years depriciation as tax saving. I have no idea if thats wrong or right. My NPV was positive.
Did you find any discount factor to arrive at the market value of convertibles? There were no discount rate provided. The value of loan notes were given so i calculated the irr of the loan notes and used that rate to arrive at market value of convertibles
sajid3295917 wrote:Did you find any discount factor to arrive at the market value of convertibles? There were no discount rate provided. The value of loan notes were given so i calculated the irr of the loan notes and used that rate to arrive at market value of convertibles
If you mean the WACC question that had shares, preference shares, and convertible notes? Then yes I used the IRR and got around 6.4-6.5%
As far as I remember, the conversion rate exceeded the par value
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