Finance Journey

Introduction: Singapore Airlines is a widely well known airline service. Offering both full service carriers (SIA) and low cost carrier(Scoot) both of which the parent company wholly owns. Revenue: SIA FY21/22 Revenue Y/Y Growth stood at 99.55% mainly because 2020's revenue was very weak and huge steps towards lifting of covid restrictions were made in 2021. The airline industry is expected to be growing at slightly more than the RFR at a CAGR of 3.1% ( SOURCE ) I forecast that revenue will continue making leaps towards recovery, recovering back to 2019's level by end 2024. ( SOURCE ) Revenue's Y/Y growth likely to start tapering down at a fast rate, by 2027 Y/Y growth reduced to 10% from 2022's 30%. And by 2033 growing at 3% Margins: As of FY21/22 financial report, the top 5 cost accounting for 81% of overall cost faced by SIA, fuel accounted for 32.7% of this. The problem is further exacerbated as fuel prices are elevated due to the Ukraine War. In the best case scena...

  Introduction: Silicon Valley Bank(SVB) is a bank that primarily serves Venture Capital/Private Equity firms in areas such as Technology and Medical start ups. Reasons: Interest rates environment In 2021, SVB received a substantial amount of deposit due to overall economy booming. It bought a lot of government treasury bonds at a low interest rate. ( Source ) Government bonds are not bad but they are exposed to interest rate risk. However, as the FEDs started raising interest rates it reduced the value of bonds SVB had outstanding. When FEDs raise interest rates, this leads to higher coupon rates on newer bonds so older bonds are sold off to capitalize on the higher coupon rates, which in turn reduces the price of older bonds i.e. their value. IF a firm had held these bonds till maturity, no losses are made. However, due to poor environment it led to lower investment into VCs so more VCs pulled their deposits out. SVB had very little liquidity so it was forced to realize the losse...

Biking Assumptions: Average bicycle lifespan is about 3.5 years ( SOURCE ) Hybrid Bicycles are used. Specifically this decathalon bicycle: Hybrid Bike Riverside 100 6 speed V-Brake - Black. ( SOURCE ) Cost of maintenance is about $58.30 ( SOURCE ) And only paid this cost at the same time when we got our bicycle i.e. at T=0. Calculations Assumptions: Discount rate accounts for the opportunity cost that was incurred because of inability to invest into the Straits Time Index(STI). Time period in my excel was taken to be monthly. Risk Free Rate(RFR) was taken to be 3.1% using last 3 months of data. ( SOURCE ) Equity Risk Premium(ERP) was taken to be 6.66% using last 3 months of data. ( SOURCE ) Final Monthly Discount Rate = [ 3.1% + 1*(6.66%) ] / 12 = 0.81%. Market Beta = 1. Monthly Pass is purchased at the end of every month. Price is fixed at $9.90/month. EXCEL:   https://imgur.com/a/nGVHNXP Obviously, I can't show the full length of monthly subscription, there's 42 columns of th...