Reflective diary

Anish Diwadkar

Section B

Roll no 13065
The first thing that we learnt was calculation of component cost of debt wherein
there was a lot of practice done for calculation of WACC, cost of debt, preference shares,
equity etc. This was followed by analysis of risk and corresponding returns. Then we learnt
about beta value of a share and the corresponding equation.

The next important concept was that of leverage. Here we learnt about the degree
of financial leverage and the formula to calculate degree of leverage. Another important
concept was indifference point. This was followed by few case studies in which there was a
revision of above concept and we learnt about their application.

We also started maintaining a portfolio of shares keeping in mind selection of

negatively co-related shares. An update of the shares portfolio was to be sent every
Saturday.

Further we studied calculation of terms such as EBIT, EAT, EBT, EPS and their
subsequent calculations.

Next up we studied the cash flow consequences of lease and comparision between
leasing and buying decisions with respect to different situations. We also performed a case
study on application of buying vs leasing principles.

Further we learnt about the concept of capital budgeting, capital structure and the
factors governing capital structure. We also learnt about the application of these concepts
via a few case studies.

Then we learnt about the ratio analysis of any firm and formulae to calculate various
ratios. We also learnt how to interpret these ratios. Further we learnt the Du-Pont model
and its various features and implications.