Hi...
It was a relief after Accounts Paper to have FM paper like this.
I am giving the outline of my answers i attempted, you all are welcome to rectify and add yours :-)
I apologize in advance for any of the foolish answers i might have written. :-(
Q1. a) i) (1+2+3)/45 = 13.33%
ii) dont remember the exact values but answer came as 13.62%
b) Loss came around 2.28 Lac
c) i think i made a mistake in it. Dividend came as 8.268 and i divided it by 9% (18%-9%) directly. I didnt factor growth in dividend. Was growth to be factored?
d) Value came around 200 Rs. Just found it by assuming value x adding 8% p.a for 6 months with monthly rests.
Q2. a) Did not know any such kind of question, but i think i did it right. Multiplied the factors given in "pure play" firms with the segments
b) This one is lenghty to explain, bu i got forward as the best option. I messed up this question.
Q3 left
Q4 a) i) Got intrinsic value as 1034.375. did it like this.. 150 interest for 5 years and 1000 received at year 5 and disc @ 14%.
ii) curr yield as interest/investment= 150/1025.86 = 14.6% and YTM as 14.298%
b) asset should be bought. did not consider annual operating exp as they seem to be common for both alternatives. discounted at 16%
Q5 a) This was a mast question. cant write all... i think this must be right for all of us.
b) pay after 3 months and difference b/w both alternatives came somewhere around Rs. 95300
Q6 a) i) Portfolio Beta came as 1.105
ii) Rs. 462500 should be invested in Zero Beta Securities
iii) SPECIAL ATTENTION : For this i wrote inconsistent question as the question is asking us to increasing the beta by buying zero (Risk Free) beta securities. Beta can be increased only by buying high beta sec. or selling low beta sec such as VSL in the question.
b) This also a very straight forward question. a) loss 35 b) profit 65 c) Profit 15
Q7 Theory.... What to discuss?? ;)
CAclubindia
