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HELP with : - Kaplan Investment Planning 1 Assignment... I need help please???

Discussion in 'General Investing Discussion' started by Vlina, 27th Jun, 2011.

  1. Vlina

    Vlina Member

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    Hello,

    I am wanting to speak with anyone that can help me with the Investment Planning 1 assignment with the case study Isabella!

    This is a nightmare and I am finding it hard to finish... I am having the most trouble with questions 3 & 5.

    If there is anyone willing to help .... Please....

    This is for the lastest 2011 .....
     
    Last edited by a moderator: 27th Jun, 2011
  2. builder2818

    builder2818 Well-Known Member

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    You may be one of only a few who have started the new subject notes. Everyone at the moment on this forum has done the 2010 version or earlier.
     
  3. Vlina

    Vlina Member

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    Investment Planning

    THATS HALF MY LUCK!!!

    CAN ANYONE HELP ME WITH THIS QUESTION??

    Isabella has received a ‘hot tip’ off a friend regarding a company that is due to list on the ASX. It is a biotechnology company, Advantage Health Services, which has been researching and developing vaccines. Isabella’s friend is a pharmaceutical rep who has heard positive things about the company’s trials from an employee. According to the company’s prospectus, which Isabella has obtained, the estimated future maintainable earnings have been projected at $50 million per annum. The discount rate for companies in the same industry 12% and the company plans to issue 100 million shares through the initial public offering at a price of $3 per share. The minimum investment is 2,000 shares.
    i) Estimate the correct issue price for these shares. Please provide formula used and all workings.
     
  4. AsxBroker

    AsxBroker Well-Known Member

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    $4.16 per share?
     
  5. Vlina

    Vlina Member

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    Hi,

    Thank you for your working, I am getting $6.00 per share and using this ratio

    EPS = Net profit available for ordinary shareholders
    Number of ordinary shares issued
    $50,000,000 / 1 000 000 000 = $0.50
    P/E ratio = Price per Share
    Annual earnings per share
    $3.00 / $0.50 = $6.00
    How are you getting you rate?? If you could show me your working that would be nice to compare or show me where I am going wrong??

    Thank you Vlina...
     
  6. AsxBroker

    AsxBroker Well-Known Member

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    Hi Vlina,

    Market valuation = Future Earnings divided by discount rate
    Market valuation = $50m / 0.12
    Market valuation = $416,666,667

    Valuation per share = market valuation / number of shares

    Valuation per share = $416.67m / 100m

    Valuation per share = $4.17

    It should be in the notes about how to estimate market value and per share.

    PS Ironically there is no CORRECT issue price, many floats have been issued at prices different to their valuation. It should ask what the share price should be.
     
  7. Vlina

    Vlina Member

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    Market valuation = Future Earnings divided by discount rate
    Market valuation = $50m / 0.12
    Market valuation = $416,666,667

    Valuation per share = market valuation / number of shares

    Valuation per share = $416.67m / 100m

    Valuation per share = $4.17

    Hello.. Thank you I was missing the 12% silly mistake I know, I have been wrecking my brain over this assignment, I have not had any trouble so far so it was bound to happen... Have you done the superannuation assignment? It is the same ??

    Thanks again...

    I trust I may be needing you help again soon...

    Vlina
     
  8. AsxBroker

    AsxBroker Well-Known Member

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    Hi Vlina,

    I did my course so long ago when it was the DFP from FPA.
    Then I completed the B Bus (FP) at RMIT.

    Cheers,

    Dan
     
  9. builder2818

    builder2818 Well-Known Member

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    Can I ask why you left stockbroking to become a financial planner?
     
  10. AsxBroker

    AsxBroker Well-Known Member

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    Hi Builder,

    I left stockbroking in 2004, as I saw the retail side becoming very commoditised (with Etrade, Commsec and other smaller brokers offering electronic execution). I moved to financial planning as I saw it as being able to help client's with their whole situation, ie, cashflow, investments, insurance, superannuation, retirement/income streams and estate planning compared to stockbroking which is purely a buy/sell environment for client's stocks.

    To some extent there are execution only services (ie, discount brokers for managed funds, super, allocated pensions and insurances) which are great for people who know what they want and don't want any advice. Though, potentially with new legislation changing rules from 1st July 2012 these services are probably going to have to charge a fee rather than the current ongoing commissions that they collect.

    Cheers,

    Dan
     
  11. Vlina

    Vlina Member

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    HELP WITH KAPLAN SUPERANNUATION & RETIREMENT - Case Study Michael and Karen

    Hi can anyone help me please with the Superannuation and Retirement planning assignment.... The case study is on Michael and Karen...

    It would be appricated!!!

    I can share my previous assignments ....
     
  12. A21

    A21 New Member

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    Hi Vlina

    I am sailing in the same boat. Just started with it and have to submit by 28th of this mnth. Scary it is !! May be we can discuss and get somewhere with it.
     
  13. Vlina

    Vlina Member

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    HI, email me at martia@tropicnet.com.au and I can help you, I have already completed it...
     
  14. niccers77

    niccers77 Member

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    Hi - I am also struggling to get this assignment complete. I have only got question 6 to go but I am really struggling with what I should include in it. My assignment is due on the 21st of this month, 4 days, eek!
    If anyone could give me some tops or pointers I would really appreciate it.
     
  15. Zoe xoxo

    Zoe xoxo New Member

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    Hey all

    I have completed the super & retirement planning assignment. If any of you have completed the Investment planning 1 SN3002 assignment and can email it to me, I will email you my completed assignment

    zoe_blondfhm@hotmail.com

    Thanks
     
  16. Basxin

    Basxin New Member

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    Hi,

    Im new. All I want to say is thank to everyone who posts here.
    I am quire desperate for some assistance with the IP1 3002 assignment. To be perfectly frank, its due in a few hours and I could do with any assistance.
    I have already completed my SRP and FFP assignments and am happy to help anyone with those two.
    Anyway. my email crazyicequeen@gmail.com and any emails for the investment assignment is very helpful.

    Thanks
     
  17. dipender

    dipender New Member

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    IP1

    hi Vlina

    i am doing same and struggling with the assignment did you able to finish yours, can you please help me


     
  18. char

    char New Member

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    IP1 (3002) Assignment Help!

    Hi Vlina,

    Hope you have finished your assignment. I am also struggling with questions 3 and 5.

    I would really appreciate your help with these questions.

    My email is shontuu@gmail.com

    If you can send me your assigment copy or just question 3 & 5 would be really helpful. Just want to compare notes.

    Thanks

     
  19. Skidderz

    Skidderz New Member

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    ip1

    Hi Vlina,

    Am wondering if your able to assit with this assignment. Im also in the same boat with q3 and 5 of ip1. I will email you.

    Thx
     
  20. tomb92

    tomb92 New Member

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    Almost finished

    I'm almost finished the assignment, struggling with number 5 and not real confident about a couple others. Can someone help me out by emailing at tacob92@gmail.com

    Not sure about this Kaplan stuff, I think I'd benefit from a classroom setting.

    Cheers