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I did the same, I got 11.4% and then 11.7% but was probably wrong, hoping to get follow through marks and working/method marks to save me! :\
@tyjtht said:
yes same but i got WACC intially 11.4%,after the new loan notes 11%,then talk about M&M….Q4b are they asking about capital rationing?Yes I wrote about Hard capital rationing and Soft !!!
@misschile100 said:
I hope so too!!
What was your market value debt to equity gearing ratio?38.5%
@tyjtht said:
38.5%OMG me too
@ehsanshah said:
Leading was cheap.. all three were around 30k with difference of 1000 something..
Theory was subjective of course..
how do you calculate leading? i wasn’t sure about it so i got forward cheapest
@dreamscars said:
how do you calculate leading? i wasn’t sure about it so i got forward cheapestYou have to convert it at the current spot rate and that was the amount you would have to pay for it then if you were leading
Guys what was your NPV??? Was it Positive ? Number starting with 9 something? lol
@ehsanshah said:
Guys what was your NPV??? Was it Positive ? Number starting with 9 something? lolyes 93000,around there
me too!, did you just comment on how it is in line with industry average and despite this, their interest cover is a lot lower? wasnt sure what else to add and ran out of time cos I skipped it initially
edit: talking about the gearing question @ 38.5%
It was positive but can’t remember the exact figures but I don’t think it started with 9
@ehsanshah said:
Guys what was your NPV??? Was it Positive ? Number starting with 9 something? lol@jaypee24 said:
me too!, did you just comment on how it is in line with industry average and despite this, their interest cover is a lot lower? wasnt sure what else to add and ran out of time cos I skipped it initiallyWell since it was Debt to EQUITY I said sometthing about how it could be highly geared as shown from the interest cover but it had a larger equity base than other companies in the same sector..bla bla bla
@tyjtht said:
yes 93000,around thereThats Cool!!!!
And for discount I said it was feasible… benefits total were starting from 5 !!!
and for future contract I wrote it was cheaper and there is no need to be certain about timing and amount of settlement… disadvantage premium should be paid now and traded in few currencies and so on.
What about you?
@misschile100 said:
You have to convert it at the current spot rate and that was the amount you would have to pay for it then if you were leadingi multiplied it with the half year borrowing rate of usd 🙁
@ehsanshah said:
Thats Cool!!!!And for discount I said it was feasible… benefits total were starting from 5 !!!
and for future contract I wrote it was cheaper and there is no need to be certain about timing and amount of settlement… disadvantage premium should be paid now and traded in few currencies and so on.
What about you?
Yes benefits total was starting at 5 and cost like 1.8 or something like that but the benefit was 3something
@misschile100 said:
It was positive but can’t remember the exact figures but I don’t think it started with 9i got 1,122,000 as answer. the figures are kinda too perfect, guess something went wrong.
@misschile100 said:
Yes benefits total was starting at 5 and cost like 1.8 or something like that but the benefit was 3somethingCool stuff !
@dreamscars said:
i got 1,122,000 as answer. the figures are kinda too perfect, guess something went wrong.I got 1something too can’t remember the exact figure
@misschile100 said:
I got 1something too can’t remember the exact figureI got 1 something also
Section B was easy compared to previous years. Especially last 2 questions. i got NPV about 1000+ and last question i found WACC 11.% after issue and 11.38% before issue so WACC falls as more debt is issued, suggested more debt to be issued than equity since the lower the WACC the more optimal WC management
in npv calculation how did you guys inflate the S.P and costs by :-
1) 4.7% + 4.7% for second year
or
2) value x (1.047)^nwhich did you use?
You have to inflate it from the first year then second then third etc so multiply figures by 1.047 then 1.047^2 etc
@evilozfon said:
in npv calculation how did you guys inflate the S.P and costs by :-
1) 4.7% + 4.7% for second year
or
2) value x (1.047)^nwhich did you use?
You don’t inflate the two if they only give general inflation.
@genty said:
You don’t inflate the two if they only give general inflation.What do you mean? They said the figures increase each year by general inflation rate
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