ACCG253 hand in thing (4 Viewers)

[boinkBOINK]

hey guys well since i enrolled late this hand in task thing
are we like assessed on it?
also anyone done it? im getting confused with it all.
the whole chapter1 just went over my head

 

[choco]

that hand in task goes into the tutorial participation mark (10%) that they give you...yeah chapters do go over your head..especially with the first question taht really stumped me..esp since they didn't mention anything in class about it either...anyway have you done 6.25?...i'm not sure how we do this since returns are restored in 5 yrs does that mean the previous D was 0?...then that doesn't work...tell me if i'm think wrongly about it

 

[boinkBOINK]

to tell u the truth
im still stuck on the first question
i gotta thoroughly go over the other questions again
cause i was overwhelmed by all the equations in the book

anyone else done it?

 

[boinkBOINK]

hay im not sure if im doin it right but for 6.13
is it 2.75 for current
and 3.74 for in 4yrs time?

OMG
now i look at it
am i doing the wrong questiosn?
im going by the question numbers in the course outline
am i totally off?

 

[redruM]

those are normal tute questions.

questions for the hand in thing are: 1.5, 2.7, 6.1, 6.2, 6.25(read the second page of the lecture/tute schedule). i have pretty much finished it. still got to do the tute questions and also tute for accg201. and i gotta get up at 6am tmw. me thinks i'll go to sleep after i finish this hand-in thing.

 

[boinkBOINK]

OH WHAT
omg
that means i havent done it yet =\
oh man
i didnt see those questions
*sigh
i did the one in the outline

anyone wanan lend a hand

 

[redruM]

1.5 - make bullshit up. may need to check the net for "fisher's separation theorem"
2.7 - straight out of the book, check the index for "liquidity"
6.1 - use example on pg 189
6.2 - same as above, comment on the equivalent interest rate
6.25 - bring the 1.20 forward (say to t = 5), then find the PV of the GP series at t = 5. and equate to find the interest rate (rate of return)

havent done 6.25 on paper yet. have to do it in the lecture tmw before my tute.

 

[boinkBOINK]

thanks alot mate
just got back from uni so im gonna start on it now =\
so tired

how long does it take to finish?

 

[Orange Juice]

boinky since your doing it, ill just copy yours...
i couldnt even find half the questions in the book...

 

[boinkBOINK]

aye oj
im just doin it now
have u done it yet?

im actually not sure if im doin the right ones
but the 6.25 is "required returns" question right?
lack of sleep has fried my brain

edit
"onhold ltd recently suspended its dividend payments. management anticipates that a dividend of 0.25 per share will be resotred in 5years and that the dividend wil be increased at a rate of 6% per year thereafter. The shares currently sell for $1.20 per share. what is the required return in this case?

can anyone help me with that?
its not sinking in

 

[redruM]

bring both to t=5

1.20(1+r)⁵ = 0.25 * [ 1/1-(1.06/1+r) ]

the RHS is the summation of this series:

1.06 + 1.06(1+r)^-1 + 1.06²(1+r)^-2 + ....

so the factor by which each GP is increasing by is 1.06(1+r)^-1 or 1.06/(1+r). and you use the limiting summation formula from acst101.

hope that clears it up a bit.

once i got to the equation on value, i didnt know how to go about solving it, so i did a dodgy, let r = 15%, then r = 17%. trial and error.

if others got it done, let me know.

 

[boinkBOINK]

is this like a pass or fail assignment?
like as long as we hand something in right?
not like if we get so and so questions wrong we get this mark etc?

as long as i put somethin down for it right?

i got ur workin til u put the word summation in there redrum
lol
perhaps oj's worked it out

 

[redruM]

want me to try to explain it a bit more? (i've been at uni for 13 hrs and my brain is dry as a cactus)

the tricky bit with the question was finding the present value of the bond, with coupon payments of 0.25, increasing by 6%. so the series for these payments would be:

[ 0.25 + 0.25(1.06) + 0.25(1.06)² + 0.25(1.06)³ + ..... + 0.25(1.06)ⁿ ]
= 0.25 [ 1 + (1.06) + (1.06)² + (1.06)³ + ..... + (1.06)ⁿ]
lets keep the 0.25 outside the bracket and focus on the series inside

now if we decide to bring each coupon payment back, with interest rate r, it would be:
= 0.25 [ 1 + (1.06)(1+r)<sup>-1</sup + (1.06)²(1+r)^-2 + (1.06)³(1+r)^-3 + ..... + (1.06)ⁿ(1.06)(1+r)^-n]

the parts in bold brings back each of the coupon payment back to t=5. so we use that as our series.

 

[choco]

i thought cactus' retain water ...so they don't dry out...?

 

[redruM]

i thought cactus' retain water ...so they don't dry out...?

wtf?!?!

posted in the wrong thread?

 

[choco]

no i didn't....
you said that your head was as dry as a cactus....that just struck me as odd..so i thought i'd mention it that's all....(i think i;ve been up too long today making random comments all the time)
anyway ........saw your post in the discussion board...and yeah i can't get the answer either...i get something close but not exact...i sold the acst101 book so i can't even look at it anymore!

 

[redruM]

lol!

shouldnt have been up all night watchin the cricket.

that cactus comment was purely a play on words. i was quite proud of that (insert correct linguistic word).

that question pissed me off last night. i tried to do it with so many methods, but couldnt get it!!

 

[choco]

i think the linguistic word you are looking for is similie..

 

[redruM]

i think the linguistic word you are looking for is similie..

but it had opposite meaning and raised issues; dry = dessert, but cactus is full of natural juices. a paradox!

edit: way to make your sig long!

(haha i did it again! ^)

 

[choco]

maybe oxymoron...?