powered by logo

Forums

Advanced capital budgeting

AFM

answered on 12-Feb-25 14:09

Not understanding how to allocate the random number from the table given in question for NPV calculation

latest answer

Simulation Monte Carlo

Neha Jadav

Neha Jadav

CA Final

★ 970

1

318

security valuation - illustration 5

AFM

answered on 07-Mar-25 15:15

why haven't we considered EPS(1-b) in the numerator of earnings growth model, instead of EPS?

latest answer

This is one method Instead of using dps We are using eps as all eps pertains to shareholders

Ali S

Ali S

CA Final

★ 8K+

3

256

Merger and Acquisitions

AFM

answered on 08-Feb-25 12:38

Why are you deducting 1 while doing premium per share considered at 18% growth i.e (114.76/75)-1. Sorry Sir I did not understand that

latest answer

CMP is 75 Price @ 18% PAT = 114.76 Premium = 114.76-75 = 39.76 Premium % over CMP = 39.76/75 x 100 = 53.02% It can be computed as (114.76-75)/75 x 100 = 53.02% which is same as (114.76/75 - 75/75 ) *100 = (114.76/75 -1 )*100 Same thing eitherways

iyshwarya Suresh

iyshwarya Suresh

CA Final

★ 12K+

1

348

Formula for arriving at 2.36

AFM

answered on 07-Feb-25 21:13

Unabel to get the syntex. Please share

latest answer

Correct

Chandan Subudhi

Chandan Subudhi

CA Final

★ 12K+

2

321

2nd point in the question

AFM

answered on 07-Feb-25 20:10

I have confused regarding project share of allocated fixed cost of 3 million usd ,based on principle of ability to share. Please clarify this point sir.

latest answer

Thank you sir. got it

Tharani Priya J

Tharani Priya J

CA Final

★ 460

2

391

Forex Query

AFM

answered on 07-Feb-25 10:04

Sir why can't do like this: we have 2 cr HKD which we sold at Rs. 8.025, now we will have to buy USD first at Rs. 61 and then sell INR for HKD at Rs. 7.588?

latest answer

You Sold HKD and purchased INR, So HKD - and INR + You have to buy HKD by selling USD , So HKD + and USD - You have to buy USD by Selling INR so INR- and USD + Irrespective of which order you do these transactions, if net effect across all currencies is zero like above, you will get the same answer

Prasoon Goel

Prasoon Goel

CA Final

★ 920

1

302

Call option understanding

AFM

answered on 07-Feb-25 06:01

Sir, why would any body enter into call option , i know it sounds tempting that i will have a floor loss but unlimited gain, however, there shall be a seller of the option available na? As the seller will be knowledgeable, he also knows that i am going to suffer only as i will have a floor gain (i.e 100 in our case) but i have unlimited loss.

latest answer

If they think mkt will not be volatile people sell Options and they buy options if they expect to be volatile It is a view / speculation akin to gambling when done without knowledge or risk management

Hrishikesh Pradhan

Hrishikesh Pradhan

Qualified CA

★ 18K+

1

361

CAGR

AFM

answered on 08-Mar-25 05:38

didnt understand the way CAGR is calculated

latest answer

-0.667 is a mid typed number regret the mistake Answer is 3.22 Also there is a video on calculator tricks in intro chapter pls go through U will not get asked cube root questions Such numbers will be provided to u in exam

ansila ansi

ansila ansi

CA Final

★ 14K+

3

337

Maintenance margin

AFM

answered on 06-Feb-25 22:26

Sir, here when we were short of maintanance margin we used to bring it to amount equal to initial margin as done in illustration 14 but here we are only recouping it till initial margin is achieved. I also remeber in 2nd or 3rd lecture you saying that if maintenance not met then we add cash as per initial margin

latest answer

Sir, got the answer for my own question 😂! Sorry, I missed some points but now understood

Hrishikesh Pradhan

Hrishikesh Pradhan

Qualified CA

★ 18K+

1

350

Discount rate - Benefit on prepayment

AFM

answered on 06-Feb-25 21:14

Can we also assume that the benefit of prepayment can be invested in IDRs, that rate can be used as we will be utilising investment in IDRs as opportunity cost of capital.

latest answer

Cash Surplus if any can be invested in IDR The benefits on prepayment etc are not cf benefits, actual cash flows are raising money and repaying debt, on account of all of those there is no surplus

Pradeep Malur

Pradeep Malur

CA Final

★ 1K+

1

339