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ill3

AFM

answered on 26-Aug-24 21:40

sir why the exchange ratio is ulta 4 shares of A, 5 shares of B . if the MP value of A is more than B we shld take like this r anyother logic is there ?

latest answer

thank u sir . now clear

HEMAVATHYSUBRAMANI SUBRAMANI

HEMAVATHYSUBRAMANI SUBRAMANI

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2

311

Alternative 2 : Replace after a year

AFM

answered on 27-Aug-24 13:27

Sir, In alternative 2 , the investment of Rs.1,50,000 made at the end of year 1 so the PVF taken as 0.909 so the annual inflow generated from this investment of Rs.80,000 should be start from year 2 till year 4 so the PVF from year 2 till year 4 but in solution it is taken from year 1. in other way in year 1 old machine also giving the inflow that was taken as for PVF 0.909 assuming only new machine brought after selling the old one.

latest answer

Thanks Sir ✨

Prethivi Rajan

Prethivi Rajan

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4

341

Please clarify capex workings

AFM

answered on 25-Aug-24 16:42

Sir in the sum the cap X is 150 and not hundred because there is a depreciation of 50 so 300+150-50 is equal to closing 400. Please clarify as per your working cap capex only hundred.

latest answer

400 is gross fixed assets and not net fixed assets. So capex is 100 and not 150 please look at next line where they have provided accumulated depreciation number. If accumulated depreciation is already provided then it means the number above is GFA and not NFA In fact they have not given any NFA number at all

kabilan sam

kabilan sam

CA Inter

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1

267

Security Valuation

AFM

answered on 23-Aug-24 20:35

Sir, Is the contents in your videos for Security valuation as per old SFM syllabus. Since I checked my TB and found this a small chapter

latest answer

In almost all chapters, I have more questions than what are there in SM. I have covered RTPs, MTPS, Past Papers, Practice Manual, SM and some from CFA Institute and elsewhere also. That is how we got to 600+ questions & Answers :)

R M

R M

ACCA Professional

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3

308

Hiller's Model

AFM

answered on 23-Aug-24 08:30

Sir, 1.Is it mandatory to write the formula in exam since in question it is not asked specifically ? 2. In the formula , It looks like it's been multiplied the variance and discounting rate but we dividing , I am understood the dividing part by the previous videos but i didn't quite get the formula part Sir

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Thank you Sir

Prethivi Rajan

Prethivi Rajan

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382

ill3

AFM

answered on 22-Aug-24 20:06

sir ill 2 and ill3 both r same question only knows . ill 3 1st sold USD bought Euro so to square up we(bank-dealer) doing buy USD and sell euro same as ill 2 right in ill2 its gain but ill3 its loss . why we didnt worked out as under 1st sold USD 1.4400*10lac USD = 1440000- (bank-ask) USD for 1.4450*10lac =5000 euro loss. =5000*31.4300/1.4450

latest answer

We provided alternative solution too in Notes. Pls check https://1fin.link/resource/c631ed476165487eb04b4477ae3986e3/0e0d1cfb2629485cb4e74ddd0c1d26b9 if you buy 1 mio USD you should sell 1 mio USD . that is ideal way to square off

HEMAVATHYSUBRAMANI SUBRAMANI

HEMAVATHYSUBRAMANI SUBRAMANI

CA Final

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1

253

Startup

AFM

answered on 22-Aug-24 09:49

Is this date for incorporation is 2016 to 19 or 2016 to 21

latest answer

The end date is being amended every year - as of now the date is 31 mar 2025

R Yashwanth Kumar

R Yashwanth Kumar

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1

294

Illustratoin 22 of Advanced Capital Budgeting Decisions

AFM

answered on 22-Aug-24 07:27

Sir in Part 5 i.e under method 1 - 10% sensitivity/reduction in project life time to 2.7 years, Are we invariably just considering 0.7 or 70% of the 3rd year cashflow i.e 600000*0.7 = Rs 4,20,000 and discounting by 10% for 3 years i.e 4,20,000/1.1^3 = Rs 3,15,552

latest answer

We compute CF for .7 years and discount by PVF for years. reason being using normal calculator to disc for 2.7 years in exam environment is not practical - icai will not be expecting you to disc for 2.7 years

Hemachandra D

Hemachandra D

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2

296

Not able to solve problem on sheet

AFM

answered on 21-Aug-24 16:04

Can't we edit the sheet and solve the problem on excel sheet. It is a protected sheet

latest answer

Exce sheets are our IP In exam anyway you have to solve on pen and paper. Pls solve on your own in excel sheet or pen and paper

Gauri Shete

Gauri Shete

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332

Illustation 21 of Chapter Advanced capital budgeting Decisions

AFM

answered on 21-Aug-24 05:47

So In exam will they give marks if (i) probable NPV is calucalted by Multipling the Probable cash flow Rs 31,000 with PV annuity factor of 2.9906 instead of doing table way for year 1 to 5, as Cash Inflow for Year 1 to 5 is same

latest answer

Yes

Hemachandra D

Hemachandra D

CA Final

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1

353