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Market premium %
AFM
answered on 24-Jul-24 11:46
To calculate Market premium %, should we use Market Premium/Price of convertible debenture or Market Premium/Conversion value? Market Premium/Price of convertible debenture is logical because Price of convertible debenture is a done outflow.
latest answer
Thankyou sir
Durai Murugan
CA Final
★ 470
4
522
REAL VALUE VS NOMINAL VALUE
AFM
answered on 22-Jul-24 19:37
Could You please Tell me the Meaning of REAL VALUE & NOMINAL VALUE in an One Word ( Just to Remember the difference Quick )
latest answer
Nominal is price change and volume change real is only volume change
naresh chandran
CA Final
★ 3K+
1
366
Exchange margin in Fate of contracts
AFM
answered on 21-Jul-24 14:25
When interbank rates is given in the question also, in few inter bank transactions exchange margin is calculated. Kindly help me out to understand when exactly exchange margin should be calculated in date of contracts problems.
latest answer
have a look at image below
vijay anvesh
CA Final
★ 85
1
359
Explicit period and Perpetuity period
AFM
answered on 20-Jul-24 19:52
Let's say Dividend is expected to grow at 18% per annum for the next four years. The growth will decline linearly to 14% per annum after first four years. Thereafter, it will stabilise at 14% per annum infinitely. Growth rate for, D1to D4 = 18% D5 = 17% D6 =16% D7 = 15% D8 to D infinity = 14% 1st case: P = PV of Dividends from D1 to D8 + PV of P8 --- WHICH IS USED IN ILL 28 2nd case: P = PV of Dividends from D1 to D7 + PV of P7 --- WHICH IS USED IN ILL 39 2nd case logic is used in this Ill 46 as well. What is the logical or appropriate method? 1.
latest answer
Thanks sir, I reverse worked this Illustration and arrived same CMP given in the question.
Durai Murugan
CA Final
★ 470
2
411
Regarding NPV computation
AFM
answered on 09-Apr-26 20:54
In illustration 7(a) we have computed NPV as NPV= PVCF-Issue price. But in illustration 7(b) we have computed the same NPV as, NPV=PVCF-Market price. Here the issue price is given as Rs.100. Why are we not taking issue price while computing NPV?
latest answer
Because No other data is given, you have to assume it that way only. We cannot make assumptions issue price
S Shriram
CA Final
★ 0
3
320
CAPEX
AFM
answered on 20-Jul-24 06:21
Should capex belong to operational activities? If yes, should we assume it?
latest answer
no capex is investment activity. you cannot assume it to be operational
Durai Murugan
CA Final
★ 470
1
411
CHAPTER 3 RISK MANAGEMENT 11. APPLICATION OF NORMAL DISTRIBUTION
AFM
answered on 19-Jul-24 13:05
May i Get the Excel Sheet worked out in the Video for Reference
latest answer
Already available as part of the chapter
naresh chandran
CA Final
★ 3K+
1
268
Dividend on revised shares
AFM
answered on 19-Jul-24 11:34
If bonus shares are issued at the end of the year, should we assume bonus is post dividend and calculate revise dividend from 5th year
latest answer
Depends on Question - question will specify clearly. Dividend has a record date and so does bonus issue - question should clarify the record dates
Durai Murugan
CA Final
★ 470
1
393
Increase or Decrease in Expected rate of return
AFM
answered on 19-Jul-24 07:29
Sir, if risk increases, K also increases and therefore price falls. So incase of unfavorable ratios, the difference between the company and market/industy ratios, it is added to expected K to arrive the company's K. Am I correct or I need further understanding?
latest answer
Thankyou sir
Durai Murugan
CA Final
★ 470
2
391
EPS of year 0 and EPS of year1
AFM
answered on 19-Jul-24 10:15
Sir, the question gives the information that the company retains Rs. 5 per share. As it is not specific about the period, can we assume it as EPS of year 0 and solve the problem? And what should we primarily do to figure out whether it is current or next year EPS in other problems as well. Kindly help me with this.
latest answer
It is based on what is written in the question. If Q says EPS as per annual report it is EPS0 because it of prev year, when say expected / budgeted it is of next year - beyond that it is subject to English interpretation
Durai Murugan
CA Final
★ 470
3
363