Discussion in 'Financial Planning Study Group' started by johnluo721, 7th May, 2010.
, I am happy to provide some of my idea on this assignment if anyone need help.
I am working on the last question of case study 2
The response to Joanna's statement " I am very worried about a possible downturn in the markets and am thinking about selling out and buying the shares back when times are better?"
I try to find some supporting points from Kaplan books, but failed. Would you please point a direction for me?
Or I just explain this in general
Like " the past return is not indication for future" I just feel that this is not strong enough.
Thank in advance
I need to hand in my assignment next week. Hope I can pass it.
There is no standard answer for this question. If you can explain and support your point , that' s good enough.
Firstly, I mentioned short term fluctuation in the market is unavoidabe.
Second, I mentioned the the time frame of their investment, they should not concern too much about short term volatility.
Finally, I remind them, any trade decision should base on careful analysis, not just their own expectation. And selling low and buying high is not a rational decision. If they selling at low price, any paper lose will be realised.
You need to add a few of your own words or example to explain it.
I am happy to able to help you.
Thanks for your valued point.
I finished my assignment and post it today!
Congrats on passing your assignment! Just a few quick questions?
For question 3, I got the result 102.64, is this correct?
Question 4b PV I got 500422 and NPV 82422, are they correct?
And finally, what formula did u use for question 4c?
Your help with these questions would be greatly apprectiated!
guys can you please help me out with question 3, what formula? its not making sense :-(
I used this formula:
PV = C1 + C2 + C3 + C4 + FV
1 + I (1 + I)2 (1 + I)3 (1 + I)4
thanks liz, am just trying to crack it now. My first go I gfot 120.798 so im not sure if Im on the right track. Is I (market yield divided by 200) the 8.95% or the 7.5%?
Ive worked it out on 7.5/200 but I could we way off track.
Your help is much appreciated!!
ignore that last one I'd mucked up the end of the formula, but I now get 103.024. This is using 3 decimal points, no idea if its right or not
I got 102.646, Im hoping its right!
its seems that on other threads they got the same result
Ive done it again and got 102.456 - bloody hell! But close enough
will be starting question four in the morning. How are you going with the case study?
Question 4 - PV
Im working from the IP Assignment Dec 09.....Have had a look at some of the other threads with relation to Question 4 and the PV & NPV cals.
Iv used the following formula:
=ncf / (1+I) + ncf / (1 + I)2 + (ncf + FV) / (1 +I)3
= $20,500 / (1+I) + (20,972.50 / (1 + I)2 + (21,560 + 575,000) / (1 + I)3
Keep coming up with the answer of $500,466. Pretty close to the "right answer" previously posted of $500,423. Maybe Iv just been looking at this too long & need a new set of eyes to shed some light. Any help please ...?
Investment planning Question 5b
just wondering whether i could gauge whether iam on the right track for question 5 b...it asks to calculate the fair price for WOW based on the earnings forecast...here is how I worked it out
B) Calculating WOW fair price
FME 1.294 Billion
Shares on Issue 1.207 Billion
Expected P/E 14.05
Earnings per share 1.485
Fair Price Share 1.485 x 14.05 $20.86
In the above the EPS and P/E figures were provided but iam not sure whether I have calculated this correctly. The reason i need to know is because i need to base my answer to the next question from this caluclation.
any assistance would be so so so helpful.
well, good luck!
That's what I got for my fair price and I passed my assignment, so Im assuming it's correct.
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