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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
CA Final
★ 3K+
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
CA Final
★ 9K+
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
CA Inter
★ 3K+
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
ACCA Professional
★ 4K+
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
latest answer
Thank you Sir
Prethivi Rajan
CA Final
★ 9K+
2
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
CA Final
★ 3K+
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
CA Final
★ 87K+
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
CA Final
★ 9K+
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
CA Final
★ 5K+
1
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
CA Final
★ 9K+
1
353