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Valuing the Market Risk

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Rameshkrishna

Finance Controller

23 Points Posted on 21 April 2008

Dear All.

Good Morning to All of you.

I am a new memebr in this club. I am Student in CA institute and working as a Asst. Manager Accounts in Qatar.

We are planning to go for a purchase/Construction of Building thru bank Loan as we are paying huge rents.

I have been asked to prepare a Investment Proposal. The loan will be or 40-50 Mio @ 7-8% pa.

I Calculated the Expected Rent Wewill be paying for this period based on the current market trend and expected growth and NPV for the same. Also the Expected increase in Sales, Manpower and Other OHs..(Based on the projected Sales Figure).

Also the NPV for the outflow. Its positive and I took @ 8% & 10%.

When i have to consider the market Risk, how to go about it?

How to show the adjustments of Market Risk in terms of Money?

other Than this what are all the Other areas I should give in my proposal.

I request you to Guide me on this.

Thanks & Regards.

Rameshkrishna

Replies (2)

Rameshkrishna

Finance Controller

23 Points Posted on 21 April 2008

Awaiting some Early response.

Thanks

Aashok Kumar Sharma

Finance/Compliance Consultant

75646 Points Posted on 04 November 2026

To solve the query from the Valuing the Market Risk thread, market risk should be quantified financially using a Risk-Adjusted Discount Rate (RADR) and a Sensitivity Matrix (stress-testing interest and construction cost variations), while the proposal itself must be rounded out with DSCR metrics, debt repayment schedules, tax/depreciation impacts, and a strategic break-even analysis.