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CA foundation Portion
AFM
answered on 10-Jan-23 05:24
As there was a change in the portions of CA foundation, will there be any modifications in the modules provided as well.
latest answer
Don't worry there will be little changes might be expected
Nova Shaji
CA Inter
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6
717
Video No #15 Illustration #4 GDR
AFM
answered on 06-Jan-23 12:02
Video No #15 Illustration #4 GDR I think we have to use next year dividend (i.e., D1) instead of D0 for calculation. Am I right? In this video, the current year dividend D0 is used for calculating the cost of GDR to Right Ltd.
latest answer
No. The question is clear Dividend expected to be paid which means net year divided which means D1
Peratchi Selvam
CA Final
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1
522
Asset Liability Managaemnt
AFM
answered on 05-Jan-23 18:33
Is concept of ALM similar to having emergency fund in personal finance,Like if we have future liability of children education or marriage we create FD of upto similar duration and only have few months expenses in hand in cash?
latest answer
Good example. Yes right
Himanshu Somani
CA Final
★ 97K+
1
557
Interest rate risk management - Gap Exposure
AFM
answered on 06-Jan-23 15:22
Is Positive and negative gap exposure related to NIM's calculated by bank: The difference between interest received on deposits and interest paid on borrowings.
latest answer
Got it, Thanks
Himanshu Somani
CA Final
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2
581
Doubt - Step-by-Step Computation (or Presentation)
AFM
answered on 03-Jan-23 11:12
In all the chapters of SFM, I've solved many problems on my own without looking the ISM answers. The FINAL ANSWERS are correct as per the book but the step-by-step computations provided in the ISM are totally different from my own computations. Will this affect my marks in exams?
latest answer
You have to do step by step - ICAI SM and suggested answers are not the right basis on which evaluation will happen in exams
Peratchi Selvam
CA Final
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1
574
Video No. 73. Illustration #39 - Multi Stage Dividend Model
AFM
answered on 02-Jan-23 05:39
Video No. 73. Illustration #39 - Multi Stage Dividend Model Sir, I think you have used the wrong PV factor to discount the Price of shares at year 8, we have to use the 16% perpetuity growth rate. I think the right Ke to discount those values are 19%, 18%, 17% & 16% for Year 5,6,7 & 8 respectively and not the original 20% which would be used only for the first 4 years. Since, it is a multi-stage dividend discount model. we have to consider the respective Ke for discounting it to the PV. Kindly check this issue.
latest answer
The question clearly states that Ke is 20% and the return expected by the investor is 20% - in such a case we will not be using any other discount rate even if the growth rate comes down. Secondly, they have provided a growth rate of dividends - we cannot equate dividend g to Ke. Thirdly even if we know g of dividends, one cannot find out ke without having the price - so the question of finding out different Ke for different points does not arise
Peratchi Selvam
CA Final
★ 925
1
707
Fate of Forward Contract
AFM
answered on 30-Dec-22 14:54
Sir, In illustration 82, able to understand the concept of Swap loss that you are getting early delivery so you are selling at 65.42 and buying at 65.22 to square off so incurring a loss of 0.20/$ which is 20,000. But not able to understand the interest cost on 18,000. 18,000 is still our loss na, why are considering interest component on that?
latest answer
Okay okay alright got it !
Himanshu Somani
CA Final
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4
643
Security Analysis- Run test
AFM
answered on 27-Dec-22 10:06
Hello sir, In illustration-5, how the number of sign changes is 18 as there are 19 data points?
latest answer
Thank you sir
Suresh Avinash
CA Final
★ 3K+
2
563
Security Analysis- Exponential Moving Average
AFM
answered on 25-Dec-22 21:22
Hello sir, In the illustration-1 calculating EMA for a 12 day period, why we have considered the value of exponent which is for 31 days instead of 12 days?
latest answer
Yes
Suresh Avinash
CA Final
★ 3K+
3
646
Security Analysis- The Dow Jones Theory
AFM
answered on 25-Dec-22 17:32
Hello Sir, In Dow Jones theory, I was not able to understand this sentence from the study material which says "The theory, in practice, states that if the cyclical swings of the stock market averages are successively higher and the successive lows are higher, then the market trend is up and a bullish market exists. Contrarily, if the successive highs and successive lows are lower, then the direction of the market is down and a bearish market exists."
latest answer
Got it Himanshu, thanks!
Suresh Avinash
CA Final
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4
704