Two things:
a) questions 36 is identical to question 35.
b) the answer to question 35 is b which is 104.98 and not 105.21.
Please re-verify.
Type: Posts; User: ashish24
Two things:
a) questions 36 is identical to question 35.
b) the answer to question 35 is b which is 104.98 and not 105.21.
Please re-verify.
Thank you.
Based on my calculations the answer is B.
Please note that I still have not got an explanation for Q 30 answer.
Based on my calculation as follows, the answer is B:
V0= 1/2[((101.07+8)+(101.98+8))/1.041] = $ 105.21.
I was wondering about my question in the posting prior to the above post. I still did not understand why we multiplied 0.078 by 360/360, rather than multiplying it by 330/360.
This is regarding...
As part of my calculations I did 1+ 0.078* 330/360, as 0.078 is the 330 day rate. However you have multiplied 0.078 by 360/360, which I guess caused the difference in our answers.
I am not so sure about the choices for this Q 29. I am using my calculations and getting an answer of $429371.97.
Please provide explanation with clarification.
The answer to the Q 29. is B according to my calculations.
The answer for Q 28 is B or the Pac man defense strategy.
The answer is A as the HHI index as a result of vizag and Salem merger goes above 0.18 to 0.19 which indicates high concentration in the industry.
Prior to the merger, the HHI index was moderate...
Q 26. I believe the shareholders would be worse off with a cash and stock deal. The gain to them will be reduced and therefore the answer is B.
I was wondering regarding the current vignette as to whether this a test of corporate finance and equity valuation or just one of them. Many of the methods used so far seem to be unfamiliar as part...
For Q 14,
I am not sure, but I think the answer is B. Please provide a explanation if the correct response is otherwise.
The answer according to my calculations is B or $13.193.
Hello all,
For Q 21 I get an answer of $574.90 million
This is how I get my answer:
V = 20/1.12 + 30/(1.12)^2 + {[749+35*(1.07)]/0.12-0.07}/(1.12)^3
= $599.8 million.
The answer to Q. 20 according to me is A as capitalization of expenses leads to higher net income. C is not applicable therefore and B is wrong, in fact the book value decreases.
For Q 17, my answer is A $1.89.
Again we are messing with basic math. How does 0.13-0.10 = 0.02 and not 0.03. With 0.03 in the numberator we end up getting 8.08% as the growth rate.
I would appreciate some clarification on two...
Again for this question based on my calculations I get an answer of 8.08% as the implied growth rate. None of the choices match my answer.
For question 14, the explanation say the retention ratio is 60%.
However the vignette shows a payout ratio of 60% which would make retention ratio at 40%.
Please explain.
Thank you for the explanation for Q12. However for Q13 none of the answers that I get as value per share match any of the choices listed.
The answer I get is $38.02.
Please verify or explain...
Q 13. Ans C.
Residual income = net income - cost of equity x equity value
= 4000000 - (0.10) * 25000000= 4000000- 2500000 = 1500000
On a per share basis =...
Thank you Ratan for providing the explanation.
Regarding question 11, the answer is A.
F= MSR/MSE = 28.
I got C as the answer in the following way:
B = 14
Unexplained regression = 1000
Therefore D=1000/14= 71.42 or approx 71
The correct answer is A