Hi John 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.

Hi John, 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! Thanks Liz

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

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 Hey guys, 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 Hi all 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.

Hi HOCFP That's what I got for my fair price and I passed my assignment, so Im assuming it's correct. Good Luck!