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Before conversion EPS

AFM

answered on 27-Jul-26 05:36

In this question, 3rd part effect of issue on basic earning per share before conversion, why are we deducting pref dividend and arriving at EAESH and then dividing by eq shares, when the question already says before conversion, pref shares are not yet issued or converted, so only eq shares are available hence we have to do PAT/eq shares i.e 15L/5L which is already in question Rs3. may be for after conversion we consider pref shares because shares changes, but for ariving at current earnings before conversion the concept of deducting Pref dividend should not arive right? [Video Time Stamp: 06:54]

latest answer

If ₹3. Is already provided in question their intent of asking basic eps is to make studentncompute basic eps once pref shares are issued Pref div is always deducted in any basic eps computation Only in diluted eps conversion effect is given and share count changes

Lavanya Ravi

Lavanya Ravi

CA Final

180

1

80

Doubt

AFM

answered on 24-Jul-26 18:27

Here you said yield is not equal to YTM. Please state the area where Yield=YTM,Yield not equal to YTM [Video Time Stamp: 02:13]

latest answer

Thank you sir

pavan kumar

pavan kumar

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3K+

2

79

Doubt

AFM

answered on 24-Jul-26 10:47

Sir here we took Yield as 11.8.then why are we finding YTM when the yield is provided. [Video Time Stamp: 03:30]

latest answer

Both words mean same thing I already responded one of your earlier queries

pavan kumar

pavan kumar

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3K+

3

102

Doubt

AFM

answered on 22-Jul-26 11:40

Why EBIT is called operating profit even though it includes interest which is financing activity.

latest answer

Because this profit is generated from Operations Operations are run using capital Capital includes both equity and debt

pavan kumar

pavan kumar

CA Final

3K+

1

77

Part 1 - Assuming expenditure is incurred initially

AFM

answered on 22-Jul-26 06:38

Sir in P 600+ part 1, 2nd assumption solved by reducing 125000 initially and solution arrived as 10.25 months by again sutracting 125000 from initial investment. [Video Time Stamp: 06:48]

latest answer

Yeah some one else also highlighted . DTP mistake Video is correct. Will update pdf online today. Thanks for highlighting

Selvakumar R

Selvakumar R

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470

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62

Doubt

AFM

answered on 21-Jul-26 20:44

Sir along with that please explain the difference between yield,YTM,realized yield in theoretical way.

latest answer

YTM is irr Yield in sec val bond chapter is YTM Realised yield is like MIRR after considering reinvestment income

pavan kumar

pavan kumar

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3K+

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67

Doubt

AFM

answered on 21-Jul-26 20:44

For Macaulay duration we have to use yield to maturity or yield or realized yield.explain [Video Time Stamp: 15:10]

latest answer

YTM and yield are same as IRR and this has to be used

pavan kumar

pavan kumar

CA Final

3K+

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52

illustration 29

AFM

answered on 21-Jul-26 15:29

Sir in second part they have asked " what is the amount of copper future it should short to achieve a perfect hedge if initial margin is 8%" . But we have found the initial margin alone. Is both the answers are same... am i misunderstanding the question?

latest answer

5 mt short explained at 6.18 minutes

Balavignesh

Balavignesh

CA Final

755

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83

Doubt

AFM

answered on 21-Jul-26 11:28

Sir here we find present value for 6th year by taking 12%.but for calculation of gain or loss we have to compare by further discounting to Y0.

latest answer

Part 2 talks abt situation after 6 year We are not asked to compute the gain loss on day zero

pavan kumar

pavan kumar

CA Final

3K+

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62

Illus 52

AFM

answered on 21-Jul-26 11:07

Sir generally we don't consider weights for CAPM, why do we multiply the CAPM with weight. If necessary how do we identify when to multiply with the weights. [Video Time Stamp: 11:33]

latest answer

Weather you take average of beta or average of returns you will get same answer Pls try and see

Bharathkumar Sivakumar

Bharathkumar Sivakumar

CA Final

780

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46