00 Practice Lab

Chapters covered: 16-27 | Focus: Ratio calculations, DuPont, promoter pledge, dividend sustainability

Use this lab after reading the chapters. Work on paper, Excel, or Screener.in before checking answers.

<- Part Overview | Book Index

Visual Learning

Practical Examples (Indian Market)

Example A - Apply the Core Formula

Pick any NSE-listed company from this part's topic (EPS, P/E, ROE, ROCE, debt, FCF, dividends). Pull latest annual report or Screener data and compute the main ratio/formula from each chapter. Build a one-page cheat sheet.

Example B - Good vs Bad Comparison

Scenario: You have Rs. 2 lakh to deploy. Using only concepts from Part 03, would you buy at full size, use 3 tranches, or wait in cash? Write 3 bullets defending your choice.

Mini Case Study

Company: Choose one Indian listed firm relevant to this part.

1. Thesis - 3 sentences: why business is good or bad
2. Numbers - 5 metrics from this part
3. Verdict - Buy / Hold / Avoid / Watchlist
4. Invalidation - 2 events that break your thesis

Practice Questions — Chapter Drills

Complete after reading each chapter's Practice Questions. Open the chapter Answer Key to verify.

• Ch 16 EPS: Eps Earnings Per Share — what is the core message of this chapter in one sentence?
• Ch 17 P/E Ratio: Pe Ratio — what is the core message of this chapter in one sentence?
• Ch 18 Book Value: Book Value — what is the core message of this chapter in one sentence?
• Ch 19 P/B Ratio: P/B Ratio (Price to Book) — what is the core message of this chapter in one sentence?
• Ch 20 ROE (Return on Equity): PAT Rs. 500 Cr, Equity Rs. 2,500 Cr — ROE?
• Ch 21 ROCE: ROCE (Return on Capital Employed) — what is the core message of this chapter in one sentence?
• Ch 22 Debt Analysis: Debt Analysis — what is the core message of this chapter in one sentence?
• Ch 23 Interest Coverage: Interest Coverage Ratio — what is the core message of this chapter in one sentence?
• Ch 24 Free Cash Flow: Free Cash Flow (FCF) — what is the core message of this chapter in one sentence?
• Ch 25 Promoter Holding: Promoter Holding — what is the core message of this chapter in one sentence?
• Ch 26 Shareholding Pattern: Shareholding Pattern — what is the core message of this chapter in one sentence?
• Ch 27 Dividend Analysis: Dividend Analysis — what is the core message of this chapter in one sentence?

Answer Key (Lab)

Self-Assessment Checklist

• Completed at least 3 calculations on real Indian companies
• Studied the diagram above without notes
• Can explain this part in 5 minutes to a friend
• Found 1 red flag in the wild using these tools
• Completed FAQ Drill (3+ answers without peeking)
• Updated investment journal with one entry

FAQ {#faq}

Use this section after reading chapter FAQs. Try answering without looking, then verify against the linked chapter.

Lab Workflow

Q: Practice lab — before or after reading chapters?

A: After — read the chapter + chapter FAQ first, try exercises without the answer key, then verify here.

Q: Is Screener.in enough, or is the annual report required?

A: For lab drills, Screener/Trendlyne is the start point; final verification must come from the consolidated annual report — CFA discipline.

Q: How do I score the Part 03 FAQ Drill?

A: 6+ accurate out of 8 drills = ready for the next part; 4–5 = re-read weak chapters; <4 = repeat the lab + FAQ index.

Q: What is the difference between Chapter FAQ and Lab FAQ?

A: Chapter FAQ = concept clarity (5 Q per chapter); Lab FAQ = synthesis across Part 03 (16-27).

Chapter FAQ Quick Index

| Ch | Chapter | Top FAQ Question | |:--:|---------|------------------| | 16 | EPS — Earnings Per Share and Dilution | What should I check alongside EPS evaluation? | | 17 | P/E Ratio — Valuation, PEG, and Sector Context | What should I check alongside P/E evaluation? | | 18 | Book Value — Shareholders' Equity per Share | What should I check alongside Book Value evaluation? | | 19 | P/B Ratio — Book Value vs Market Price | What should I check alongside P/B Ratio evaluation? | | 20 | Return on Equity (ROE) — Profitability and Leve… | What should I check alongside ROE evaluation? | | 21 | ROCE — Return on Capital Employed | What should I check alongside ROCE evaluation? | | 22 | Debt Analysis — D/E, Net Debt, and Coverage | What should I check alongside Debt Analysis evaluation? | | 23 | Interest Coverage — Debt Servicing Capacity | What should I check alongside Interest Coverage evaluation? | | 24 | Free Cash Flow — CFO minus Capex | What should I check alongside Free Cash Flow evaluation? | | 25 | Promoter Holding — Alignment vs Pledge Risk | What should I check alongside Promoter Holding evaluation? | | 26 | Shareholding Pattern — FII/DII/Public Mix | What should I check alongside Shareholding Pattern evaluation? | | 27 | Dividend Analysis — Payout, Yield, and Sustaina… | What should I check alongside Dividend Analysis evaluation? |

FAQ Drill — Test Yourself

Answer in 2–3 complete sentences in English, then open the chapter FAQ link to check.

• Ch 16: What should I check alongside EPS evaluation?
• Ch 17: What should I check alongside P/E evaluation?
• Ch 18: What should I check alongside Book Value evaluation?
• Ch 19: What should I check alongside P/B Ratio evaluation?
• Ch 20: What should I check alongside ROE evaluation?
• Ch 21: What should I check alongside ROCE evaluation?
• Ch 22: What should I check alongside Debt Analysis evaluation?
• Ch 23: What should I check alongside Interest Coverage evaluation?
• + 4 more in Chapter FAQ Quick Index

FAQ Answer Key (Lab)

Go Deeper

Disclaimer: Educational content only. Not investment advice.