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Earnings
AFM
answered on 01-Dec-24 07:12
Also when EBITDA itself is 6 Lakhs then Earnings will be less than 6 Lakhs, in answer we have determined earnings as 50,33,333
latest answer
Earnings value is not EPS Earnings value is intrinsic value of share arrived at by capitalising earnings
Hemachandra D
CA Final
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1
575
EPS vs Earnings Value Per share
AFM
answered on 01-Dec-24 07:12
Sir EPS is earnings per share for a partiular period. wheras as earnings value per share is Value of enitity as a whole in terms of per share, Am I right ?( I guess this confusion because they have given Earnings value instead of enterprise value)
latest answer
Yes your understanding is correct
Hemachandra D
CA Final
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1
541
Expense ratio
AFM
answered on 29-Nov-24 19:47
Sir, In P600+ expense ratio given as 1.607% , Kindly elaborate Sir
latest answer
No doubt Sir Clarified 🙌
Prethivi Rajan
CA Final
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3
282
Short Term gain or Long term gain
AFM
answered on 29-Nov-24 19:44
Sir, If the IPO on 1.4.2009 , if we take from 2013 for 3 years short term will come till 2016 , could you please elaborate on the part @ 7:00 timings ?
latest answer
Yes Sir , Clarified , confused since the open ended securities are unlisted so jumped under period of holding 3 years because missed the part of equity oriented. So it 1 year for short term.
Prethivi Rajan
CA Final
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2
247
Doubt regarding why value of R not taken in sub question 3.
AFM
answered on 27-Nov-24 08:26
Sir , why the value of r not taken into consideration ? Since it included in the formula
latest answer
Thank you Sir 🙌
Prethivi Rajan
CA Final
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2
651
Gain/Loss
AFM
answered on 25-Nov-24 12:45
Why the gain or loss is annualised here? The movement in futures in given for 3 months in the question.
latest answer
We have annualised in order to show that the once a futures contract is entered into actual market movement do not have any impact and teh interest rate implied by futures is the one at which the buyer or seller will recognize their cashflows
Raviteja Kusumanchi
Qualified CA
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1
559
Cost of collar
AFM
answered on 25-Nov-24 12:43
In the last line of the question, it was mentioned as explain the cost of the collar. How should this be solved since question has no mention of premium.
latest answer
In exam if premia is not given you should state that without premia cost of collar cannot be found out . However based on cashflows because of the collar, the net interest cost is USD x Mio and it is beneficial to the buyer
Raviteja Kusumanchi
Qualified CA
★ 42K+
1
587
Additional expenses in part ii
AFM
answered on 24-Nov-24 08:43
Can we assume that additional expenses are paid upfront similar to premium, hence FV of the same should be computed.
latest answer
Yes. But even without considering Time Value of Money for that 30K The FC borrowing from Indian bank is cheaper - yes you can compute but that does not change the answer
Raviteja Kusumanchi
Qualified CA
★ 42K+
1
499
correlation ( auto correlation)
AFM
answered on 24-Nov-24 08:47
in a week form of efficiency ,todays prices reflect all information found in past , this means that todays price is related with past price , then how it is said that inorder to satisfy weak form of efficiency there should be no relationship between past and future price movements
latest answer
I explained it from 8.00 minutes to 9.00 minutes in this video Please finish full chapter with all questions - you will understand the concept - if not ping again specifically pointing out what you did not understand - i am here to help
S.Aathma Dharshini
CA Final
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3
291
Ideal forward rate
AFM
answered on 17-May-25 20:43
If we calculate ideal forward rate using formula =Spot * (1+Int rate of domestic country)/(1+ Int rate of foreign country), then answer will be 0.665*1.0225/1.075, i.e., 0.6325. But you got the ideal rate as 0.6681. Can this approach be used?
latest answer
You can do that way also but answer will not change as we are not trying to find out the ideal rate but actually make a decision on borrowing or lending. The diff is because i divided the Annualized differential by 4 whereas you divided respective annual interest rates by four and computed the differential
Raviteja Kusumanchi
Qualified CA
★ 42K+
7
776