powered by logo

Forums

Doubt

AFM

answered on 07-Jul-26 11:53

Will xyz get paid from pqr ltd as dividend belongs to A. [Video Time Stamp: 32:46]

latest answer

The lender of the stock has to be reimbursed by the borrower of the stock yes

pavan kumar

pavan kumar

CA Final

★ 4K+

1

138

Doubt

AFM

answered on 07-Jul-26 10:56

Sir here we can calculate p3 instead of taking the value given in question.Why we are not doing that?

latest answer

We are doing that in part 2 and 3 of the question. Part 1 requires us to compute PV of share assuming Y3 price is 720

pavan kumar

pavan kumar

CA Final

★ 4K+

1

74

Explanation video missing

AFM

answered on 06-Jul-26 20:35

can you please direct me to the video that is displayed at 6.02 minute. i cant find that discussion video sir can you please say the video number, Sir? [Video Time Stamp: 06:02]

latest answer

It was used in prev explanation of ill 35 - which had to be corrected later in ill37 all that is required to understand has been covered and relevant explanation was provided again. if you did not understand let me know. Happy to assist

Selvakumar R

Selvakumar R

CA Final

★ 470

1

73

Post right issue wealth

AFM

answered on 06-Jul-26 20:37

Sir, the project outlay cost 150 we added to pre rights issue. My doubt is the amount is paid from rights issue, can we subtract it from post rights issue. [Video Time Stamp: 23:15]

latest answer

150 is now with company and it cannot be reduced

Selvakumar R

Selvakumar R

CA Final

★ 470

2

61

doubt

AFM

answered on 06-Jul-26 13:58

Why are we reducing short-term debt for the computation of current liabilities? [Video Time Stamp: 02:37]

latest answer

Yes The question says change in wc is 25 If you treat at debt as part of wc then the amount of change in wc is not matching I explain in video that this is a CFA question and per USGAAP ST debt is excluded from CL

pavan kumar

pavan kumar

CA Final

★ 4K+

3

124

Two stage model

AFM

answered on 06-Jul-26 09:39

Q3. In calculating value of D2 the formula is D1(1+g)^2... next step when substituting the values, D1 taken as 4 and not 4.8. Actually (D o) is 4... [Video Time Stamp: 05:48]

latest answer

ok

Meenal Asher

Meenal Asher

CA Final

★ 7K+

3

117

Illustration 54

AFM

answered on 06-Jul-26 09:42

Sir ,in the second part of question (effective yield calculation) we have got 7.92% as answer. Just to cross check, If we use this yield and calculate present value(i.e, 8,8,8,8 & 108 @ 7.92%) we get 100.32 as answer. But ideally the answer should be close to 101 right? So is it necessary to use interpolation and find the YTM at which NPV becomes 0. [Video Time Stamp: 19:12]

latest answer

No. the word effective yield does not mean YTM both are diff terms Effective yield is a back of the envelope computation to compare various bonds. It is just a term with a specific defined meaning, which has no other use anywhere else

Balavignesh

Balavignesh

CA Final

★ 985

1

69

Illustration 33

AFM

answered on 04-Jul-26 16:40

Sir, why tax benefit of amortisation of (5000*30%=1500) is considered but actual benefit in amortisation(5000) is not considered? [Video Time Stamp: 13:48]

latest answer

Because amortisation or depreciation are non cash items and only cash flow that arises out of them is the tax benefit from writing them off in the P&L

Balavignesh

Balavignesh

CA Final

★ 985

1

61

Illustration 30

AFM

answered on 04-Jul-26 09:23

Sir, in this question the 6-month forward premium is 1.66% and the interest rate differential is 2.91%. Since the interest rate differential is greater than the forward premium, should we conclude that the company should borrow in USD and invest in INR? Is my understanding correct? [Video Time Stamp: 03:12]

latest answer

Yes PGIDB Premium > Int Differential then borrow domestic

Vaikundaraja  A

Vaikundaraja A

CA Final

★ 18K+

1

71

Gain on contract

AFM

answered on 03-Jul-26 19:05

sir, How the gain on contract is computed in this problem?

latest answer

Thank you sir

Vijay Ramesh

Vijay Ramesh

CA Final

★ 2K+

2

108