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Just passed my Investment Planning assignment

Discussion in 'Financial Planning Study Group' started by johnluo721, 7th May, 2010.

  1. johnluo721

    johnluo721 Active Member

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    :), I am happy to provide some of my idea on this assignment if anyone need help.
     
  2. Jennylichen

    Jennylichen Member

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    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.
     
  3. johnluo721

    johnluo721 Active Member

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    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.
     
  4. Jennylichen

    Jennylichen Member

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    Thanks for your valued point.
    I finished my assignment and post it today!
     
  5. Liz123

    Liz123 Active Member

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    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
     
  6. gocats

    gocats Well-Known Member

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    guys can you please help me out with question 3, what formula? its not making sense :-(
     
  7. Liz123

    Liz123 Active Member

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    I used this formula:

    PV = C1 + C2 + C3 + C4 + FV
    1 + I (1 + I)2 (1 + I)3 (1 + I)4
     
  8. gocats

    gocats Well-Known Member

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    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!!
     
  9. gocats

    gocats Well-Known Member

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    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
     
  10. Liz123

    Liz123 Active Member

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    I got 102.646, Im hoping its right!

    its seems that on other threads they got the same result
     
  11. gocats

    gocats Well-Known Member

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    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?
     
  12. stav

    stav Member

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    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 ...?
     
  13. HOCFP

    HOCFP Active Member

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    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.
     
  14. TDFawaz

    TDFawaz Tony

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    well, good luck!
     
  15. Liz123

    Liz123 Active Member

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    Hi HOCFP

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

    Good Luck!