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illustration 13

AFM

answered on 13-Oct-24 07:18

Sir why are we not taking short term loans and provisions as current liabilities?Also can we take that as the sales has been increased by 20% , every other items are also increased by 20%. The explanation provided was unable to for me to understand.

latest answer

In real life financial projections also wc items are taken as % of sales - ie assumption being that receivable & payable days will remain the same Why not consider any increase in ST loans & Provision? - They have specifically provided ratio of sales to ST loans & Prov & we have to stick to that Now why consider all increase in Prov & none in ST loans provisions will inc in line with WC but ST loans will be a balancing figure considering other constrains of Ratio of Sales to ST Loans & Prov as well as D:E ratio

S Shriram

S Shriram

CA Final

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1

331

Regarding undervalued

AFM

answered on 13-Oct-24 06:42

Sir, how to find whether the stock is undervalued or overvalued?

latest answer

Undervalued assets

S Shriram

S Shriram

CA Final

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1

295

Excel Sheet - Figures cannot be viewed

AFM

answered on 11-Oct-24 19:07

I cannot view the entire figures in the excel, saying its protected. Can I get the password to unprotect the sheet?

latest answer

Excel sheet is our IP. Regret cannot share password IF some testy is not visible pls share a screenshot and I shall re upload excel sheet ensuring all numbers are visible All solutions are also available in p600+

Dilip Kumaran

Dilip Kumaran

CA Final

★ 610

1

262

Portfolio Management - Illustration 34

AFM

answered on 10-Oct-24 19:33

Minor correction in the table where price is 170 & absolute return is 20

latest answer

Ok sir 👍

Vigneshwar M

Vigneshwar M

CA Final

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6

671

Forex

AFM

answered on 10-Oct-24 05:24

I need order currency sir Including euro from exam point

latest answer

Follow the logic in Screenshot below

Ravi Teja

Ravi Teja

CA Final

★ 20

1

777

Illustration 30 - Derivatives

AFM

answered on 10-Oct-24 10:15

The P600 has a different solution (in the similar way of ICAI Study material) and not the method solved in this video. Which method to follow sir? It seems that the study material method will give the total expected payoff whereas this one gives only the value of option. (The difference between $757 & $667 is close to the value of option derived as per the video)

latest answer

yes

Vigneshwar M

Vigneshwar M

CA Final

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6

661

Note about growth rate

AFM

answered on 09-Oct-24 10:19

In this illustration in note the growth rate has been asked to assume stable. But in 2nd part we are calculating growth, how should I interpret this note sir.

latest answer

Part 2 talks of stable g considering revised dividend pay out ratio part 1 considers org div pay out ratio

priyadharshini priya

priyadharshini priya

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264

RISK FREE SECURITIES

AFM

answered on 09-Oct-24 05:55

In this sum, you did find out the value to be invested in Risk Free securities using an equation; can we find out in the way given below. =(5000/1.3)*0.91=Rs.3500. Rs.5000-Rs.3500=Rs.1500==> To be invested in Risk Free security.

latest answer

Why did you divide by 1.3 & multiply by 0.91 you should be able to explain it in exam. Only then you will be awarded marks

Mohanbabu N

Mohanbabu N

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308

Portfolio Management - Illustration 5

AFM

answered on 08-Oct-24 13:39

Can we take the return on government bonds for each year as the Risk free rate as we are specifically evaluating the stock for each year? Or does taking the average of risk free rates up to the year of evaluation (i.e., for 2003, average of 6 & 5, for 2004, average of 6, 5 & 4 and for 2005, average of all the four years) appropriate?

latest answer

ok

Vigneshwar M

Vigneshwar M

CA Final

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3

716

Formula of Step 4 of Replacement Decesion

AFM

answered on 07-Oct-24 10:21

Sir in the formula sheet Step 4 given as Step 1 + Step 3, Isn't is Step 3 - Step 1

latest answer

If CF outflow numbers are computed in negative, then it is Step 1 + Step 3 That is the intent - but anyway will add a suitable note beside it in the formula sheet - thanks for highlighting

Hemachandra D

Hemachandra D

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671