5 July Advanced Financial Analysis

MATHEMATICS

Afterschoool – developing change makers CENTRE FOR SOCIAL ENTREPRENEURSHIP PGPSE PROGRAMME – OPEN FOR ALL FREE FOR ALL

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MATHS Dr. T.K. Jain. AFTERSCHOOOL Centre for social entrepreneurship Bikaner M: 9414430763 [email protected] www.afterschool.tk www.afterschoool.tk www.afterschoool.tk

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X/30 = 2/45, WHAT IS X?  LET

US CROSS MULTIPLY IT.  45 X = 60  X = 60/45  X = 1.33 ANSWER.

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FORTH PART OF A NUMBER EXCEEDS THE SIXTH PART BY 6, WHAT ARE THE NUMBERS?  X/4

– X/6 = 6  (6X-4X) /24 = 6  2X = 6*24  X = 3*24  X =72

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PR ODU CT OF 2 NUMBE RS IS 3200 AND QUOTI EN T WH EN THE LAR GER NUMBE R IS DIVI DED B Y T HE S MALLE R IS 2. WH AT A RE NU MB ER S?  LET

US ASSUME THAT NUMBERS ARE X & Y.  XY = 3200; X/Y = 2  X = 2Y Put the value of X in first equation.  2y*y = 3200; 2y^2 = 3200. (divide both by 2). : y^2 = 1600. or Y = 40 X =2y= 80. www.afterschoool.tk

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Denominator of a fraction exceeds numerator by 2. if 5 is added to numerator, fraction increases by unity. What is fraction:?      

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Let us assume numerator = x Let us assume denominator = y Y-X = 2; x = Y-2 add 5 to numerator: (X + 5)/Y = x/y +1 (Y-2+5) /y = (Y-2) /Y +1 (Y +3) / Y = Y-2+Y / Y (multiply both sides by Y – denominator Y gets cancelled). Y+3 = 2Y -2; -Y = -5; Y = 5, X = 3 answer.

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A num ber cons ists of 2 digi ts. The di gi t in ten’ s place is 3 tim es the di gi t in unit ’s pl ace. If 54 is subtract ed f rom the number , the di gi ts are reversed. The number i s ?        

Options: 92,93,94,39 (solve by option). Let us assume that digit at unit place is X and digit at ten’s place is Y. Y = 3X. (10Y +X)-54 = (10x+Y) 10Y+X-54=10x+y 9Y-9X =54 or Y-X = 6 (putting Y = 3x) 3X-X =6 or 2x =6, X = 3. Y = 9 The number is 93 anwer.

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2x+5y = 9 and 3x-y =5, what are x & y?  

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Let us equate X. Multiply first equation by 3 and second equation by 2 (as in the first equation it is 2x and second equation it is 3x). 6x +15y = 27 and 6x -2y = 10 (both X are equal now). 17Y = 17 or Y = 17/17 = 1 Putting the value of Y in first equation. 2X +5 = 9 or 2X = 4 or X = 2 answer. ,

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Who is a professional?  He

adheres to a code of conduct  He follows knowledge base  He is sincere  Compensation is based on client’s objectives  He adheres to his profession.

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What is a financial plan?  Written

down plan about future – predictions, expectations based on rational assumptions.

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Which are essentials in financial plans?  Current

financial position  Disclaimers  Assumptions (if any).  Disclosures

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Why do you need to do periodical reviews of financial plans?  Because

economy is changing  Industry is changing  Objective of the entrepreneur / client are also changing

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Suppose the market has doubled during last 6 months, but the client compains that his investment is bringing returns, what should you do?

 Market

return is based on an index of securities. Different asset structure will give different returns. Return is dependent on asset structure. If we are able to explain asset structure, client will understand it. www.afterschoool.tk

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I made i nvestme nt of Rs . 40000 0 in a plan t. Ye arly Re turns are as u nder: 1. 12000 0, 2 , 100 000, 3, 14 0000, 4, 80 000 and 5 : 100 000. whe n do es my investment pa ys of f (u se pay ba ck method) ?

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120000+100000+140000 gives 3.6 lakh. Next year in six months, I get 40000. Thus my pay back period is 3.5 years. A project with shorter payback period should be selected. (pay back calculation is very simple). Limitation: we have ignored time value of money.

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Starchand invested Rs. 100000, which pays back 28000 per annum for 4 years. What is payback period?

 28*3

= 84000. now 16000 is left.  16/28 = .57  That means payback period is 3.57 years (ans).

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I invest Rs. 30000 per annum now. I increase my investment every year by 10%. Interest rate is 11%. What will be my money after 30 years?

=

30000 * [(1+.11)^30 – (1+.1)^30] / [(1+.11) – (1+.1)]  =30000*[22.89-17.44]/[.01\]  =30000* (5.45/.01)  =30000*545 = 1,63,50,000 answer. www.afterschoool.tk

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Afterschooolian Tarachand invests 15000 and increases investment @ 1000 p.a.. Intererest rate 7.5%. What will be the amount after 10 years?

Formulae for this is :  A * FV + [addition * (FV-N)] / I  A = 1st investment, FV = future value of annuity of Re 1. N = no. of years I = interest rate.  =15000*14.147 + [1000*(14.147-10)]/.075  =212205+ (4147/.075)  =212205+52293 =267498 answer 

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Shyam & company gives following details. Risk free rate @7%, their Beta is 1.2, return on market portfolio is 13%. What is their cost of retained earning?

 Beta

= riskiness of a security in comparison to market.  Retained earning= earnings not distributed to shareholders is called retained earnings  = 7 + 1.2(13-7)  = 7+ 7.2 = 14.2 % answer. www.afterschoool.tk

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ABO UT A FTERSCH OOO L Afterschoool conducts three year integrated PGPSE (after class 12th along with IAS / CA / CS) and 18 month PGPSE (Post Graduate Programme in Social Entrepreneurship) along with preparation for CS / CFP / CFA /CMA / FRM. This course is also available online also. It also conducts workshops on social entrepreneurship in schools and colleges all over India – start social entrepreneurship club in your institution today with the help from afterschoool and help us in developing society.

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Why such a programme? 

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To promote people to take up entrepreneurship and help develop the society To enable people to take up franchising and other such options to start a business / social development project To enable people to take up social development as their mission To enable people to promote spirituality and positive thinking in the world

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Who are our supporters?  Afterschoolians,

our past beneficiaries, entrepreneurs and social entrepreneurs are supporting us.  You can also support us – not necessarily by money – but by being promotor of our concept and our ideas.

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About AFTERSCHOOOL PGPSE – the best programme for developing great entrepreneurs     

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Most flexible, adaptive but rigorous programme Available in distance learning mode Case study focused- latest cases Industry oriented practical curriculum Designed to make you entrepreneurs – not just an employee Option to take up part time job – so earn while you learn The only absolutely free course on internet

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Workshops from AFTERSCHOOOL         

IIF, Delhi CIPS, Jaipur ICSI Hyderabad Branch Gyan Vihar, Jaipur Apex Institute of Management, Jaipur Aravali Institute of Management, Jodhpur Xavier Institute of Management, Bhubaneshwar Pacific Institute, Udaipur Engineering College, Hyderabad

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Flexible Specialisations:          

Spiritualising business and society Rural development and transformation HRD and Education, Social Development NGO and voluntary work Investment analysis,microfinance and inclusion Retail sector, BPO, KPO Accounting & Information system (with CA / CS /CMA) Hospital management and Health care Hospitality sector and culture and heritage Other sectors of high growth, high technology and social relevance

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Salient features: The only programme of its kind (in the whole world)  No publicity and low profile course  For those who want to achieve success in life – not just a degree  Indepth knowledge and expertise  Professional approac: World class approach  Strong intellectual and business capabilities  Flexible – you may stay for a month and continue the rest of the education by distance mode. / you may attend weekend classes  Scholarships for those from poor economic background  Latest and constantly changing curriculum – keeping pace with the time  Placement for those who are interested  Admissions open throughout the year  Latest and most advanced technologies, books and study www.afterschoool.tk AFTERSCHOOOL MATERIAL FOR PGPSE PARTICIPANTS material 

Components              

Pedagogy curriculum and approach based on IIM Ahmedabad and ISB Hyderabad (the founder is alumnus from IIMA & ISB Hyderabad) Meditation, spiritualisation, and self development Essential softwares for business Business plan, Research projects Participation in conferences / seminars Workshops on leadership, team building etc. Written submissions of research projects/articles / papers Interview of entrepreneurs, writing biographies of entrepreneurs Editing of journals / newsletters Consultancy / research projects Assignments, communication skill workshops Participation in conferences and seminars Group discussions, mock interviews, self development diaryng Mind Power Training & writing workshop (by Dr. T.K.Jain)

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Pedagogy          

Case analysis, Articles from Harvard Business Review Quiz, seminars, workshops, games, Visits to entrepreneurs and industrial visits Presentations, Latest audio-visuals Group discussions and group projects Periodic self assessment Mentoring and counselling Study exchange programme (with institutions out of India) Rural development / Social welfare projects

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Branches  AFTERSCHOOOL

will shortly open its branches in important cities in India including Delhi, Kota, Mumbai, Gurgaon and other important cities. Afterschooolians will be responsible for managing and developing these branches – and for promoting social entrepreneurs.

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Case Studies  We

want to write case studies on social entrepreneurs, first generation entrepreneurs, ethical entrepreneurs. Please help us in this process. Help us to be in touch with entrepreneurs, so that we may develop entrepreneurs.

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Basic values at afterschoool        

Share to learn more Interact to develop yourself Fear is your worst enemy Make mistakes to learn Study & discuss in a group Criticism is the healthy route to mutual support and help Ask fundamental questions : why, when, how & where? Embrace change – and compete with yourself only

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www.afterschoool.tk social entrepreneurship for better society

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