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Jargons
AFM
answered on 15-Mar-24 16:35
Sir, Please explain the below financial jargon in easy way including its formula or calculation: 1. Working Capital Burn 2. P & L Burn 3. CAPEX Burn 4. Cash Burn
latest answer
yes.
Hrishikesh Pradhan
Qualified CA
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3
451
Derivatives
AFM
answered on 15-Mar-24 12:39
The highlighted figure,It should be 1.025 right?
latest answer
Why correct Square root of 1.05 = 1.0246950 so 1.0247 is correct
Kumar G
CA Final
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1
423
Illustration 21 mutual funds- Dividend
AFM
answered on 22-Mar-24 17:29
Divident given was on the date of 31.12.2017 but solution date is 31.03.2017.
latest answer
Made the correction in the video - thanks for highlighting
Devika Viswanathan
CA Final
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2
277
Advanced Capital Budgeting
AFM
answered on 15-Mar-24 10:46
Hello Sir, In this problem, why are we dividing by the discounting rate if the variances are additive
latest answer
This method is used only when specific text like expected value of distribution etc are used. In last part we are adding variances but PV of variances- Hillers method is a formula given in ICAI - i did search about it in a few places but could not locate any literature - i have not seen anyone use it practically also
Suresh Avinash
CA Final
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475
Regarding dividend
AFM
answered on 22-Mar-24 17:29
Sir My understanding: We subtract dividend from spot + coc. ( ie spot added with cost of capital) bec the future holder will not get the dividend. So 1)if dividend is paid on last date of future, we can subtract directly the given amount of dividend because we are subtracting from future value(apple to apple comparison). But 2) If dividend is paid immediately then we should subtract the dividend amount and "dividend*Cost of capital%*remaining months/12" because investment is reduced after issuing dividend, so future period cost of carry of the reduced amt also need to be reduced. My doubt : In this sum, point 1) of my understanding's reverse position is there. Ie) dividend declared immediately so directly subtract from futures value.
latest answer
Made the correction in video - thanks for highlighting
Mugilan Poonkundran
CA Final
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2
331
Derivatives - value of option
AFM
answered on 14-Mar-24 15:43
While calculating value of option at maturity should we reduce the premium paid ?
latest answer
No.
Enuguru Sai Nithin
CA Final
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409
Startup finance
AFM
answered on 14-Mar-24 15:03
Angel Investors give money as a kind of loan and Venture capitalists will give money in exchange for shares. Am I Correct sir ?
latest answer
Thank you
M Naresh
CA Final
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2
419
2 Doubts sir in Part 3
AFM
answered on 14-Mar-24 12:01
1) When we cover 50% and 120%,Portfolio Beta is constant. What is the logic behind it ? 2) Sir, in arriving at total notional nifty short, I get different answers for all three. For example in number one, Rs 9,94,450*100%*1.10 = Rs 10,93,895/- But in video you got Rs Rs 10,95,832.3
latest answer
1. Beta of portfolio only consisting of stocks will be constant . But beta of portfolio of stocks + nifty short will be diff-for diff quantum of nifty shorts 2. you are getting diff answer as you considered only 2 decimals but i considered 4 decimals
Mugilan Poonkundran
CA Final
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1
257
Advanced capital budgeting
AFM
answered on 14-Mar-24 12:03
If this question comes in exam, do we have to solve using both methods of sensitivity analysis?
latest answer
Question will specify; if not any one method is sufficient - 10% change is simplest
nazriya nasar
CA Final
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383
Part 5 not understood
AFM
answered on 13-Mar-24 19:23
Will be grateful if you help me to understand as early as possible
latest answer
Beta is sensitivity of a stock or portfolio's return to market return. In this case we are computing 2 things 1. what is change in porfolio value considering change in market 2. what is new beta of porfolio since value and composition of portfolio has changed what is it that you have not understood
Mugilan Poonkundran
CA Final
★ 0
1
293