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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
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
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
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
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
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
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
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
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
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
CA Final
★ 1K+
1
339