in question 4 risk premium is already given and not market return rate hence coc is supposed to be 40%. i.e. risk premium 15% * 2 beta + 10% risk free rate= 40%..
sir, im doing US CMA form miles education . my question is that SECION - D & F are not compulsory for essay question in exam because they are theory sections so i have to prepare D & F section ? i check out your all videos you are make video for SECTION - D & F . Regards , naiya patel
in question 4 risk premium is already given and not market return rate hence coc is supposed to be 40%. i.e. risk premium 15% * 2 beta + 10% risk free rate= 40%..
You are right. That was my mistake there.
In question 5, we won't use discounted pay back method to calculate payback period for project X?
Sir while calculating depreciation are you supposed to add wc in initial investment or deduct any sale or salvage value
Don't do either. Just divide cost of the asset over its useful life
Sir, please explain why here we considered the Market Risk Premium as the Market Rate of Return?
It should be 10%+2*15% but we took 10%+2*15%-10%.
Would the calculation for debt cost be different if the bonds don’t mature next year?
Yes
Sir is the calculation of debt different in this question? .......
sir, im doing US CMA form miles education . my question is that SECION - D & F are not compulsory for essay question in exam because they are theory sections so i have to prepare D & F section ? i check out your all videos you are make video for SECTION - D & F .
Regards , naiya patel
Essay exam could be based on any section or combinations of sections. Do everything. Leave nothing
Shouldn't we take expected market rate of return in CAPM instead of risk premium sir?
Risk premium already includes Rm in computation so no need to consider it separately
@@FTCGlobal okay sir can you please tell what's the formula for Risk premium? Is it Rm + risk free rate?
Risk premium = Beta(Rm - Rf)
Sir I have one doubt in xam will there will be annuity table and excel sheet?
Annuity table would be available on testing screen. However, no excel
Q 2.4