Dare to Ask Mian Aamir about Advance Research Method

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Respected Sir, The recommended book is ” Research methods. Neuman’s Social Research Methods”. Sir may i ask this book have also guidance for all research categories irrespective of the human study (social research methods).

Dear Student… Yes. But you can also consult any book on research methods, like written by Uma Sekaran, Zikmund, Creswell, etc. they all have covered the same topics of research methods.


Dear Student I’m doing fine here, Alhamdulillah... You can consult any book on Research Methods. Definitely, the topics discussed in lectures are almost covered by every book on Research Methods. Please do not get confused. In case of any other query, please do not hesitate to ask.

AOA,  Honorable Sir, the banks uses the compound interest method while issuing the loans and other services. On the other hand when the banks give interest they use the simple interest method. Sir is there any standered format for the banks at international level and at domestic level.

On the second most of the countries of world charge the different rate of interest while giving and taking the loans to the peoples.
Sir is there any policy of IMF for the banks and other institutions regarding the simple and compound interest.
Dear Student!
Operations of banking industry are quite sensitive in nature and thus banks have to strictly follow certain rules and regulations for running its each and every operation. Banking industry is formulated under the banking ordinance 1962. Then banks have to follow the statutes formulated and circulated by State Bank of the country. Thereafter, banking industry also follows the Basel rules formulated by International Basel Committee of Banking Supervision. These rules guide banks to guard against the financial and operational risks. So, banking industry is highly disciplined to follow the rules and regulations regarding its operations mainly include lending and borrowings.
Mostly the compound interest is used for loaning purposes. Whether national or international level, loaning is done based upon the credit worthiness of the customer. If customer is highly risky then the higher interest will be charged for compensation of high risk and vice versa.
If you have any confusion regarding the concepts, kindly ask at qundeel.com@gmail.com
In starting of..cashflows valuations findout 1 to 4 years.in which we have to find pv.n we should see th value in PVIF table because we r going to findout pv..but in solution(slide)FVIF value is taken if i see the value in FVIA table then answer is right..but in last reply u said if we find pv then we will see in PVIF table n vice versa.

Dear Student!

You are required to make clear of your concept regarding use of present value interest factor and future value interest factor. If you discount the cash flows, that means you are diving the given cash flows with interest factor (1+r)t for reaching to its present value. If you compound the flows, that means you are multiplying the given cash flows with interest factor (1+r)t for calculating their future worth.In the said example, firstly the value of future interest factor (1+r)t  has been used but in last column, we are dividing the cash flows with this future interest factor. You can solve the example by taking present value interest factor {1/(1+r)t } but in that case, you will have to multiply the present value interest factor with given cash flows instead of dividing them.

Sir, one more point in addition to the previous Questions regarding common stock valuation. 3. is it true that “Due to increase in inflation & growth of business over the time, there is also increase in dividend or EPS.” if yes then what are effects of inflation & growth on calculation made through give models?

Dear Student!

Your question is quite general in nature answer of which is yes. There is indirect impact of inflation on corporate earnings. Increase in inflation reduces the tax benefits that ultimately affect the corporate earnings negatively. Similarly, growth of business means increase in their revenues that ultimately increase the corporate earnings. So, both the inflation and business growth affect the corporate’s earnings per share. Inflation factor is taken into consideration in Capital Asset Pricing Model (when investments are made in international stocks) used for stock valuation that you will learn in detail in upcoming lectures of the course.

However, every organization has its own policy for dividend. So, it depends upon the company’s policy whether to change the amount of dividend with change in inflation or not. Sometimes, companies share their increased earnings with their shareholders in form of dividend and sometimes they reinvest in more profitable projects instead of distributing their earnings as dividends.

For calculation purposes of stock valuation, if we are using dividend discount model then increase in growth rate will result in increased expected future dividend because expected dividend is calculated by multiplying the current dividend with growth rate.

Sir what is the importance of capital budgeting in corporate finance.

Capital budgeting is very crucial for running a company’s operations successfully and for maximization of its value.

  1. Capital budgeting helps in planning and analyzing how to raise funds for investing in fixed assets like land, building, plan & machinery etc.
  2. Capital budgeting analyses help in deciding which projects are better to invest and which are not.
  3. These analyses also help in deciding from which sources the fund should be raised.
  4. Dear Sir ,could you please guide us how to calculate EAR for infininate period.
  5. Formula for calculating effective annual rate when compounding is done for finite period is:EAR = (1+ i/n)^n – 1

    Here “n” is the number of compounding periods. When compounding is done for the periods which are infinitely small then continuous compounding is done by using the below mentioned formula:

    EAR = ei – 1

    Here “e” is used for continuous compounding and is equal to 2.71828. For example, if interest rate is 4% and computing is done continuously then

    EAR = e0.04 – 1

    EAR = 2.718280.04 – 1 = 4.08%

    Hope the concept is clear to you. If you have confusion regarding any other concept, please write us qundeel.com@gmail.com

  6. Dear Sir How to calculate percentage % of year 2002 & 2003 in given below data as this data is not available in your assignment. Please let me know when you will come at University i wish to take your lecture.
  7. Maryeem
  8. Dear Student!
    In common size analysis, items on asset side are shown as percentage of TOTAL ASSETS. Similarly, all items on liabilities and equity side are shown as percentage of TOTAL In the given example, total assets for 2003 are of Rs. 199,045,700 and percentage of fixed assets against total assets is 62.87% {(125,138,737/199,045,700)*100}.


It is further, you can collect my lecture schedule from my Assistant Mr. Naeem. SA.

Dear Sir, How strategic management helps in gaining the awareness of external threats and weaknesses?

Dear Sana

Thank you for the question. Strategic management tools like TOWS matrix, SWOT analysis, External Factor Evaluation (IFE matix) etc. an organization in identifying external opportunities and threats in a meaningful and purposeful manner. Results of such statistical tools are based on expert opinion, analysis and consensus of management teams; therefore often have the additional advantage of joint ownership, team work and synergy of organizational stake holders. Such strategic tools that are used in different planning activities help the organization in making effective strategies.

Hopefully you have got the concept. Feel free to write in case of any ambiguity at qundeel.com@gmail.com

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