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H model

AFM

answered on 21-Jun-26 15:12

As we can use two stage discount model because the concept was same we can find the div for each and we can find pv for it and terminal value for last year and find pv add both would also give value of share right?

latest answer

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Bala Manoj Kumar.S

Bala Manoj Kumar.S

CA Final

★ 460

7

88

Derivatives - Options

AFM

answered on 19-Jun-26 05:57

Sir, why has the Black-Scholes formula been changed in this question? Is the change due to the valuation of a Put Option? Kindly explain how we identify which formula should be used [Video Time Stamp: 38:12]

latest answer

It is put option bsm formula explained at minute 8 If they ask unto use put option black scholes , you will use this

Vaikundaraja  A

Vaikundaraja A

CA Final

★ 18K+

1

79

Foreign Exchange

AFM

answered on 16-Jun-26 07:16

why is that in some illustrations we use 6/12 and in some 180/365(for days)? Is there any particular reason behind this, sir? [Video Time Stamp: 14:05]

latest answer

No Depends on question and what they ask Usually days are preferred unless where details are very difficult to get in which case we use months to make computations

Jayanth

Jayanth

CA Final

★ 6K+

1

76

Addition of Int

AFM

answered on 12-Jun-26 11:38

Sir why interest is getting added to the Principal for the next day Calculation, (i understood that it is for compounding ) but no where they have mentioned in question i guess, Correct me if i am wrong? [Video Time Stamp: 07:25]

latest answer

ICAI has asked similar questions in exams and they have used same logic. So for icai exam purposes this is an inherent assumption you have to make

JANA KRISHNA K S

JANA KRISHNA K S

CA Final

★ 2K+

1

88

illustration number 16

AFM

answered on 09-Jun-26 13:07

sir npv means cashoutflow -pv of cash inflow is it here face value 10000 why we are not taking face value as outflow? sir current market price means is it price at the time when we purchase the bond? or price presenting running in the market? [Video Time Stamp: 08:28]

latest answer

Face value is not outflow because investment is made at 10790 which is correct outflow Final inflow is face value of 10000 In this context cmp is same as price in mkt and at which investor invested

saipriya  v

saipriya v

CA Final

★ 510

1

69

illustarion no 4

AFM

answered on 08-Jun-26 14:45

sir why we don't get 100 as bond price when yield and coupon at 10%

latest answer

Because redemption is at price different than 100 Only if redemption is at par, coupon will be equal to YTM else they both will be different

saipriya  v

saipriya v

CA Final

★ 510

1

81

No loss - MV approach

AFM

answered on 07-Jun-26 21:35

Sir, though we use MV approach assuming same PE post merger, still the Shareholders of NN lose out in EPS as Post merger EPS for NN shareholders (78/14.1818)*0.7273 = 4 vs Pre merger EPS - 6. Are we considering no loss in only perspective of Market Capitalisation? [Video Time Stamp: 19:12]

latest answer

Yes If Question specifies gain loss from a specific perspective use it. Else compute gain or loss on mcap and eps basis. Have explained this in subsequent problems

SANJITHA

CA Final

★ 1K+

1

146

Cost to Acquirer

AFM

answered on 08-Jun-26 10:27

Sir, whether the gain from synergy shared to target (Doom) is considered as cost to Acquirer (Elrond) Shareholders? [Video Time Stamp: 06:36]

latest answer

yes

SANJITHA

CA Final

★ 1K+

1

139

Illustration 33

AFM

answered on 07-Jun-26 14:53

Sir, when the portfolio return is negative, why do we calculate net receipt by adding the negative portfolio return to the fixed return? My understanding is that we actually receive only the fixed return of 4.6. Could you please clarify this? [Video Time Stamp: 00:11]

latest answer

Return One party say A pays fixed and other party B pays variable If variable return is negative value then instead of B paying A, B will end up receiving from A

Mhd Mmp

Mhd Mmp

CA Final

★ 870

1

137

Illustration 13

AFM

answered on 07-Jun-26 13:48

Sir, instead of taking the June month rate of 8,850, why have we not taken the theoretical price of 8,935.795? [Video Time Stamp: 11:25]

latest answer

When we enter into a buy or sell contract on an exchange we arrive at it based on price quoted on the exchange and not what we think is the theoretically right price

Vaikundaraja  A

Vaikundaraja A

CA Final

★ 18K+

1

74