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AFM

answered on 09-Mar-25 12:01

Sir, base currency is Rs . so, i want to convert GBP to inr means buy INR means sell INR for Bank, so use ask price, why can't we use that.

latest answer

Okk Sir, Understood

Hrishikesh Pradhan

Hrishikesh Pradhan

Qualified CA

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2

258

Computation of interest rate

AFM

answered on 09-Mar-25 11:04

Sir, I computed by myself and got interest rare for 6 months franc int rate as 19.1443% while our answer is 19.153%, will this variation be ok

latest answer

Sure no worries

Hrishikesh Pradhan

Hrishikesh Pradhan

Qualified CA

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243

What is real and nominal

AFM

answered on 08-Mar-25 17:57

nominal" refers to the current price of something, while "real" refers to that same value adjusted for inflation, In answer after adjusting inflation getting nominal cash flow? How Confusing What is real and nominal

latest answer

Nominal refers to current which has inflation Real is without inflation

Ramamoorthy Kaliyaperumal

Ramamoorthy Kaliyaperumal

CA Final

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567

Market Capitalisation - Formula

AFM

answered on 08-Mar-25 12:55

Whether the formula for market cap is "Outstanding shares X Price of a share" or "Value of core business + Value of surplus cash + Value of investments"

latest answer

Also from core business we need to subtract debt

Nitin Raj

Nitin Raj

CA Final

★ 270

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279

Business Valuation - Illustration 24

AFM

answered on 08-Mar-25 05:39

In sub question (ii), why hasn't the PV of the explicit period been added sir in PE based valuation sir?

latest answer

Ok sir

Vigneshwar M

Vigneshwar M

CA Final

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240

In india means ?

AFM

answered on 06-Mar-25 13:40

Sir in Question (estimate the net present value of the proposed "project in India") In india word in the questioon means just to arive NPV of project INDIA , so this the meaning or it has any other significance and since they have told repatriation will happen to US, so we calulate NPV from perspective of US just small confusion with respect to Project in India and then we calulate NPV in USD

latest answer

Project proposed in India is a single phrase They are referring to this project that’s all They are not asking from India perspective

Hemachandra D

Hemachandra D

CA Final

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329

Timing option - Illustration 6 of SM

AFM

answered on 06-Mar-25 05:36

Sir in this question, we have found out p using risk neutral method but we have taken negative probability also while calculating the expected payoff but in Illustration 2 of SM we have taken payoff as 0 (for the value which is less than the strike price) and taken only the positive payoff and multiplied with its probability to arrive at the value of option. Why are we considering the negative payoff also since the company can ignore the proposal if the savings turn out to be Rs. 12 lakhs. Kindly clarify sir.

latest answer

Yes absolutely

Vigneshwar M

Vigneshwar M

CA Final

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300

Forwards - Illustration 17

AFM

answered on 06-Mar-25 05:06

Here dividend is an actual outflow as he has to pay that to the buyer (Since he shorted it, he doesn't have the stock in hand at the time of shorting. Hence, he would not receive it from the company and it has to be paid from his pocket) Am I right sir?

latest answer

Thank you sir

Vigneshwar M

Vigneshwar M

CA Final

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2

240

ILL-2

AFM

answered on 06-Mar-25 05:36

Can u explain in detail in this solution why you have not multiplied with (1-Tax) at 14:32minutes

latest answer

Depreciation

P.udaykumar Pasupulati

P.udaykumar Pasupulati

CA Final

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284

If cash not available

AFM

answered on 05-Mar-25 17:14

Sir what if the cash not available Whether we have to reduce the same as payable than reduce the NAV value or something else?

latest answer

Reduce as payable

Ramamoorthy Kaliyaperumal

Ramamoorthy Kaliyaperumal

CA Final

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303