[thomas1212]

Hi John, i finally understood using F9 videos not AFM videos. Plz ignore my question

thank you

[thomas1212]

if i’m watching the wrong lectures, is it possible to let me know which video lecture to watch for me to understand TAD problem that i have written above ?

[thomas1212]

Hi John, i still was not able to clear my doubt after watching APV videos.

Is it possible if you help me to answer my questions ?

[thomas1212]

Hi John, can i ask a question regarding TAD and tax saving ?

1. just to summarize, there are two ways to calculate TAD

first one is by simply multiplying TAD rate to get the TAD amount.

second one is by multiplying TAD rate and TAX SAVING rate to get the TAD amount.

is it correct ?

you have mentioned that both give the same answer but how can both have the same answer ? first one did not multiplied tax saving amount to get TAD while second multiplied tax saving to get the TAD amount.

[thomas1212]

for number 1, that means i need to write my own assumption after i have shown calculation ? (like why issue cost is like that ?)

[thomas1212]

then if “proportion of the book value of non-current assets invested in each business unit gives a fair representation of the size of each business units” isn’t stated in the question, then can i use 0.29 as an asset beta of travel services ?

[thomas1212]

does it mean that if it wasn’t up to 6 months. What happens if it was up to one month ?

then since the question is asking for in five months, we can’t use this rate ?

[thomas1212]

just to add as question 3, since in the question we are in year 0, therefore shouldn’t we suppose to make t as 3 not 2 ???

[thomas1212]

just to add for the question 1, are we allowed to write like a report ?

4. what are the contents or necessary items that we need to add for discussion paper and briefing note to obtain professional marks ?

[thomas1212]

moreover , in the question 2, is there any chance the question may ask us to present the answer in diagrammatical method ?

[thomas1212]

(Sorry John let me rephrase it)

for 25,000 us dollar i’m not still not sure why we have to use forward…. we can also use futures isn’t ?

lecturer in the video states that examiner wants us to use the forward rate, so mandatorily we simply use forward rate for any short fall( eg in this question, 25,000 US dollars ) for the option questions like this ??

[thomas1212]

for 25,000 us dollar i’m not still not sure why we have to use forward…. we can also use futures isn’t ?

lecturer in the video states that examiner wants us the forward rate, so mandatorily we use forward rate for any short fall( 25,000 US dollars ) ?

[thomas1212]

so what you are saying is that when one company enters into a forex swap with another party, one can not only swap the currency with another party(using government swap rate) but also buy the other party currency’s loan(using government swap rate) ??????

[thomas1212]

It’s kaplan textbook chapter 10 page 383 test your understanding 6, goldsmith

[thomas1212]

I mean when we take out the loan to buy the foreign currency in order to swap back with the counter party, the loan we buy the foreign currency should be based on spot rate isn’t ?

because forex swap rate offered by the bank is literally for the purpose of swaping currency. Therefore shouldn’t we suppose to use spot rate to buy the loan in order to swap back with the counter party ?

[thomas1212]

i’m also curious about this matter !

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