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Fund Charges
AFM
answered on 20-May-26 22:03
Sir, Fund charges is it need to be applied on Face value irrespective of market value. Here it is not applied on face value
latest answer
U can make such assumption also as Q is not clear
Vanacharla Sai Pavan Kumar
CA Final
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438
MODIFIED DURATION
AFM
answered on 13-Jan-24 19:01
The formula for MD is -Macaulay duration/(1+y) but while doing Sums we are ignoring the minus(-). So whether in formula will there be minus or not?
latest answer
If yield goes up prices come down - minus is to denote that Modified duration is sensitivity - you can either say price change is -x % or price comes down by x% for an increase in yield - minus sign is to denote the inverse nature
Mohanbabu N
CA Final
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Unlevered beta calculation
AFM
answered on 13-Jan-24 19:22
Sir, As far as I remember unlevered beta is the beta without considering debt then why are we considering debt in denominator. Similarly , in earlier videos Beta of assets was Beta of equity * weight of equity in total value + Beta of debt * weight of debt . So,this formula is for levered?
latest answer
Unlevered beta is without any impact of debt. If debt gets added then beta increase , i.e leverage plays an impact in magnifying both losses and gains and hence sensitivity to market returns increases and hence beta increases - IN this q we are computing Equity beta for a 40:60 D:E based on org Asset beta or 100 % equity beta of 1.8 In earlier videos the formula given is right - Since beta of Debt is zero in real life the forumla discussed in earlier videos works to teh formula discussed in this video - both are derivation of each other - i explained this aspect in last 1 minute of the current video too
Hrishikesh Pradhan
Qualified CA
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Replacement decesions
AFM
answered on 13-Jan-24 05:56
Can anyone please help me with 26th question please
latest answer
Advanced capital budgeting decisions chapter solution to Q 36. Pls check our P590 compiler - link below. https://1fin.in/AFM_P590 You can watch entire AFM for free including solution to this Q on our website till Jan 15 To access it for free, go to free courses tab in left menu, select CA final in filter and then start watching AFM final free classes.
Sairam Reddy
CA Final
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435
Regarding extension
AFM
answered on 13-Jan-24 04:02
Kindly extend the validity sir .. I knw 2 days ago
latest answer
Pls watch till 15 th
Nagaraj Poojary
CA Final
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511
Macaulay Duration - Practical Example
AFM
answered on 13-Jan-24 00:09
Sir, [Timestamp @ 14:28] Should it have been divided by ₹ 100 (i.e., the 'Par Value' which is also the 'Market Price', as Coupon Rate = YTM) instead of ₹ 150?, since the numerator is summation of numbers discounted to their PV and weighted. Thanks.
latest answer
Many thanks sir. Much obliged.
Denz Philip
CA Final
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295
Institute suggest answer difference reg
AFM
answered on 12-Jan-24 20:27
As per ICAI suggested answer the short fall margin amount deposited Rs.10500. They calculated on difference between initial contract price amount 10500(36680-26180) but material calculated on 4th day price 9660(35840-26180) which one is correct? AFM Topic : Derivative - future& forward Illustration 27 Video no 47
latest answer
Ok Sir , thankyou for your clarification
sakthivel pandian
CA Final
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469
Advanced Capital Budgeting
AFM
answered on 12-Jan-24 13:52
Sir can you please tell, how did you get 393087 in the first assumption of sensitivity calculation.?
latest answer
Org NPV = 310293 New NPV = - 82795 Change is from + 310293 to -82795 Total change = 393088 ( 310293+82795)
Indira Madigeri
CA Inter
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468
Why we are adding PY inflation to CY cost or revenue
AFM
answered on 12-Jan-24 13:46
To find out nominal revenue or cost for current yr , we are adding CY as well as PY inflation rate. Why PY inflation rate?
latest answer
Yes - same logic applies to your question too..:)
Shubhrata Neogi
CA Final
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624
SECURITY VALUATION -EQUITIES
AFM
answered on 12-Jan-24 13:47
ILLUSTRATION-33 While calculating NPV why we are not multiplying the cashinflow with 1st year PVF OF 13% as in the question it is mentioned as the cashinflow is after 1 year. And while calculating market price after rights issue why are we inculding NPV also same i couldnt understand while issuing publicly.
latest answer
Because after the right issue, money has come in. money will be invested in the project. Project will give benefits to all shareholders. So, value of all shares will increase.
Mohanbabu N
CA Final
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