Financial Analysis 1 September
This document was uploaded by user and they confirmed that they have the permission to share it. If you are author or own the copyright of this book, please report to us by using this DMCA report form. Report DMCA
Overview
Download & View Financial Analysis 1 September as PDF for free.
More details
- Words: 1,431
- Pages: 24
FINANCIAL ANALYSIS AFTERSCHO☺OL – DEVELOPING CHANGE MAKERS CENTRE FOR SOCIAL ENTREPRENEURSHIP PGPSE PROGRAMME – World’ Most Comprehensive programme in social entrepreneurship & spiritual entrepreneurship OPEN FOR ALL FREE FOR ALL
www.afterschoool.tk
AFTERSCHO☺OL's MATERIAL FOR PGPSE PARTICIPANTS
FINANCIAL ANALYSIS Dr. T.K. Jain.
AFTERSCHO☺OL Centre for social entrepreneurship Bikaner M: 9414430763 [email protected] www.afterschool.tk, www.afterschoool.tk www.afterschoool.tk
AFTERSCHO☺OL's MATERIAL FOR PGPSE PARTICIPANTS
Present share price is Rs. 60. after 6 months it will be 75 (with probability .7) or 50 (with probability .3), call options available after 6 month is at price 65. what should you do ? • Call option = an option that you can buy a share . • Hedge ratio = (spread of possible option pricies / spread of possible stock prices). www.afterschoool.tk
AFTERSCHO☺OL's MATERIAL FOR PGPSE PARTICIPANTS
Solution . . . • Spread of possible option prices = (expected price – call price) • = (75 – 65 ) = 10 Or (50 – 65) = -15 (we will not exercise call option) Spread of possible share prices = 75 – 50 = 25 = 10 /25 = .4 It means that you should buy .4 shares in a long position for every 1 share that you sell short. (ans). www.afterschoool.tk
AFTERSCHO☺OL's MATERIAL FOR PGPSE PARTICIPANTS
In the previous question, what is the Expected Value of the option price? Formulae = (spread of option prices) *probabilities. We have two spreads = 10 and Zero Probability associated with 10 is .7 and probability associated with Zero ix .3. Thus answer is : (10*.7) + (Zero *.3) = 7 answer. www.afterschoool.tk
AFTERSCHO☺OL's MATERIAL FOR PGPSE PARTICIPANTS
You will receive $ 1 million after 6 months as receivables. You have two options, go for factoring at 2% discount and 20% interest rate or go for forfaiting for 20% discount rate. Possibility of bad debt is 2% and your own cost of funds is 25%. Which option will you exercise and why? • The cost in first option is 1.2 Lakhs, but in www.afterschoool.tk AFTERSCHO☺OL's MATERIAL FOR PGPSE PARTICIPANTS second option your cost is 1.0 lakhs.
Solution . . • Factor is also undertaking responsibility for bad debt recovery, thus in this case you are ensured. Your probability of bad debt is also 2%, thus in this case both the option (factoring and forfaiting are equally good). If you don’t go for these, your own cost is 25%, which means, you will suffer by 1.25 Lakhs. Thus you may have any of the two options. www.afterschoool.tk
AFTERSCHO☺OL's MATERIAL FOR PGPSE PARTICIPANTS
My current assets are 3 Lakhs, my inventory is 1 Lakh. My current liability is 1.5 Lakh, what is my quick ratio? • (current assets – inventory)/ current liability • = 2/1.5 = 1.333 answer.
www.afterschoool.tk
AFTERSCHO☺OL's MATERIAL FOR PGPSE PARTICIPANTS
Share price of my company is 240, but face value is 10, what is my MB Ratio ? • MB = Market to book ratio • = 240 / 10 = 24 answer.
www.afterschoool.tk
AFTERSCHO☺OL's MATERIAL FOR PGPSE PARTICIPANTS
In the previous quesiton, my dividend is Rs. 12 per share , what is dividend yield? • DPS / Market price = 12/240 =.05 answer
www.afterschoool.tk
AFTERSCHO☺OL's MATERIAL FOR PGPSE PARTICIPANTS
In the previous quesiton, we have 1 lakh shares and no debt, if we want to buy similar plant and set up, it will cost us 10 crores, what is Tobin Q Ratio? • = Market value of firm / Replacement cost of assets • = 24000000/100000000 • =.24 answer. www.afterschoool.tk
AFTERSCHO☺OL's MATERIAL FOR PGPSE PARTICIPANTS
ABOUT AFTERSCHO☺OL 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.
www.afterschoool.tk
AFTERSCHO☺OL's MATERIAL FOR PGPSE PARTICIPANTS
Why such a programme? • 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 www.afterschoool.tk
AFTERSCHO☺OL's MATERIAL FOR PGPSE PARTICIPANTS
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.
www.afterschoool.tk
AFTERSCHO☺OL's MATERIAL FOR PGPSE PARTICIPANTS
About AFTERSCHO☺OL PGPSE – the best programme for developing great entrepreneurs • • • • •
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 www.afterschoool.tk
AFTERSCHO☺OL's MATERIAL FOR PGPSE PARTICIPANTS
Workshops from AFTERSCHO☺OL • • • • • • • • •
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
www.afterschoool.tk
AFTERSCHO☺OL's MATERIAL FOR PGPSE PARTICIPANTS
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
www.afterschoool.tk
AFTERSCHO☺OL's MATERIAL FOR PGPSE PARTICIPANTS
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 • 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 material www.afterschoool.tk
AFTERSCHO☺OL's MATERIAL FOR PGPSE PARTICIPANTS
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)
www.afterschoool.tk
AFTERSCHO☺OL's MATERIAL FOR PGPSE PARTICIPANTS
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 www.afterschoool.tk
AFTERSCHO☺OL's MATERIAL FOR PGPSE PARTICIPANTS
Branches • AFTERSCHO☺OL 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.
www.afterschoool.tk
AFTERSCHO☺OL's MATERIAL FOR PGPSE PARTICIPANTS
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.
www.afterschoool.tk
AFTERSCHO☺OL's MATERIAL FOR PGPSE PARTICIPANTS
Basic values at AFTERSCHO☺OL • • • • • •
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 www.afterschoool.tk
AFTERSCHO☺OL's MATERIAL FOR PGPSE PARTICIPANTS
www.afterschoool.tk social entrepreneurship for better society
www.afterschoool.tk
AFTERSCHO☺OL's MATERIAL FOR PGPSE PARTICIPANTS
www.afterschoool.tk
AFTERSCHO☺OL's MATERIAL FOR PGPSE PARTICIPANTS
FINANCIAL ANALYSIS Dr. T.K. Jain.
AFTERSCHO☺OL Centre for social entrepreneurship Bikaner M: 9414430763 [email protected] www.afterschool.tk, www.afterschoool.tk www.afterschoool.tk
AFTERSCHO☺OL's MATERIAL FOR PGPSE PARTICIPANTS
Present share price is Rs. 60. after 6 months it will be 75 (with probability .7) or 50 (with probability .3), call options available after 6 month is at price 65. what should you do ? • Call option = an option that you can buy a share . • Hedge ratio = (spread of possible option pricies / spread of possible stock prices). www.afterschoool.tk
AFTERSCHO☺OL's MATERIAL FOR PGPSE PARTICIPANTS
Solution . . . • Spread of possible option prices = (expected price – call price) • = (75 – 65 ) = 10 Or (50 – 65) = -15 (we will not exercise call option) Spread of possible share prices = 75 – 50 = 25 = 10 /25 = .4 It means that you should buy .4 shares in a long position for every 1 share that you sell short. (ans). www.afterschoool.tk
AFTERSCHO☺OL's MATERIAL FOR PGPSE PARTICIPANTS
In the previous question, what is the Expected Value of the option price? Formulae = (spread of option prices) *probabilities. We have two spreads = 10 and Zero Probability associated with 10 is .7 and probability associated with Zero ix .3. Thus answer is : (10*.7) + (Zero *.3) = 7 answer. www.afterschoool.tk
AFTERSCHO☺OL's MATERIAL FOR PGPSE PARTICIPANTS
You will receive $ 1 million after 6 months as receivables. You have two options, go for factoring at 2% discount and 20% interest rate or go for forfaiting for 20% discount rate. Possibility of bad debt is 2% and your own cost of funds is 25%. Which option will you exercise and why? • The cost in first option is 1.2 Lakhs, but in www.afterschoool.tk AFTERSCHO☺OL's MATERIAL FOR PGPSE PARTICIPANTS second option your cost is 1.0 lakhs.
Solution . . • Factor is also undertaking responsibility for bad debt recovery, thus in this case you are ensured. Your probability of bad debt is also 2%, thus in this case both the option (factoring and forfaiting are equally good). If you don’t go for these, your own cost is 25%, which means, you will suffer by 1.25 Lakhs. Thus you may have any of the two options. www.afterschoool.tk
AFTERSCHO☺OL's MATERIAL FOR PGPSE PARTICIPANTS
My current assets are 3 Lakhs, my inventory is 1 Lakh. My current liability is 1.5 Lakh, what is my quick ratio? • (current assets – inventory)/ current liability • = 2/1.5 = 1.333 answer.
www.afterschoool.tk
AFTERSCHO☺OL's MATERIAL FOR PGPSE PARTICIPANTS
Share price of my company is 240, but face value is 10, what is my MB Ratio ? • MB = Market to book ratio • = 240 / 10 = 24 answer.
www.afterschoool.tk
AFTERSCHO☺OL's MATERIAL FOR PGPSE PARTICIPANTS
In the previous quesiton, my dividend is Rs. 12 per share , what is dividend yield? • DPS / Market price = 12/240 =.05 answer
www.afterschoool.tk
AFTERSCHO☺OL's MATERIAL FOR PGPSE PARTICIPANTS
In the previous quesiton, we have 1 lakh shares and no debt, if we want to buy similar plant and set up, it will cost us 10 crores, what is Tobin Q Ratio? • = Market value of firm / Replacement cost of assets • = 24000000/100000000 • =.24 answer. www.afterschoool.tk
AFTERSCHO☺OL's MATERIAL FOR PGPSE PARTICIPANTS
ABOUT AFTERSCHO☺OL 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.
www.afterschoool.tk
AFTERSCHO☺OL's MATERIAL FOR PGPSE PARTICIPANTS
Why such a programme? • 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 www.afterschoool.tk
AFTERSCHO☺OL's MATERIAL FOR PGPSE PARTICIPANTS
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.
www.afterschoool.tk
AFTERSCHO☺OL's MATERIAL FOR PGPSE PARTICIPANTS
About AFTERSCHO☺OL PGPSE – the best programme for developing great entrepreneurs • • • • •
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 www.afterschoool.tk
AFTERSCHO☺OL's MATERIAL FOR PGPSE PARTICIPANTS
Workshops from AFTERSCHO☺OL • • • • • • • • •
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
www.afterschoool.tk
AFTERSCHO☺OL's MATERIAL FOR PGPSE PARTICIPANTS
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
www.afterschoool.tk
AFTERSCHO☺OL's MATERIAL FOR PGPSE PARTICIPANTS
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 • 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 material www.afterschoool.tk
AFTERSCHO☺OL's MATERIAL FOR PGPSE PARTICIPANTS
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)
www.afterschoool.tk
AFTERSCHO☺OL's MATERIAL FOR PGPSE PARTICIPANTS
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 www.afterschoool.tk
AFTERSCHO☺OL's MATERIAL FOR PGPSE PARTICIPANTS
Branches • AFTERSCHO☺OL 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.
www.afterschoool.tk
AFTERSCHO☺OL's MATERIAL FOR PGPSE PARTICIPANTS
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.
www.afterschoool.tk
AFTERSCHO☺OL's MATERIAL FOR PGPSE PARTICIPANTS
Basic values at AFTERSCHO☺OL • • • • • •
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 www.afterschoool.tk
AFTERSCHO☺OL's MATERIAL FOR PGPSE PARTICIPANTS
www.afterschoool.tk social entrepreneurship for better society
www.afterschoool.tk
AFTERSCHO☺OL's MATERIAL FOR PGPSE PARTICIPANTS
Related Documents
Financial Analysis 1 September
November 2019 12
Financial Analysis 2 September
November 2019 16
Financial Statement Analysis[1][1]
April 2020 8
Financial Analysis
October 2019 43
Financial Analysis
June 2020 32