Forums
Market cap
AFM
answered on 19-Dec-25 15:15
Sir, I have a small doubt regarding calculation of market capitalization in acquisition problems. In some questions (for example, Q.24), market capitalization is calculated as post-acquisition market price × total number of shares after acquisition. However, in some other questions (like Q.46 – Day Ltd & Night Ltd), I noticed that market capitalization is found by adding the market capitalization of both companies before acquisition. Sir, could you please clarify in which situations each method should be applied?
latest answer
ok sir
Muhammed Mubaris
CA Final
★ 190
2
39
Replacement Decision
AFM
answered on 17-Dec-25 10:56
Sir, since EAC represents the cost for one full year and is realised at the end of the year for the new machine, the existing machine should also be allowed to operate for at least one year for a meaningful comparison. Therefore, we considered NPVs from the end of Year 1 onwards to take the replacement decision. Am I right, sir [Video Time Stamp: 09:37]
latest answer
No Machine can be replaced now also in which case we have salvage value of 40K right away at point 0 Secondly EAC is arrived at by summing up all discount factors - you basically get a value at period 0 and not at end of period 1
Murali Thripuraboina
CA Final
★ 3K+
1
47
Doubt regarding expenses not deducted from calculation of NAV
AFM
answered on 17-Dec-25 11:52
Sir, why didn't we deduct 6.68 cr in calculation of NAV whereas we deducted fund operating expenses in computation of NAV in illustration 18 also and in various illustrations also we deducted fund operating expenses can you please explain sir
latest answer
Understood sir
siva chaitanya
CA Final
★ 13K+
2
45
Assumption
AFM
answered on 15-Dec-25 11:26
Sir, in this Question, can I take the assumption that P Ltd acquired C Ltd and solve the question? [Video Time Stamp: 05:01]
latest answer
No Share count will change
Murali Thripuraboina
CA Final
★ 3K+
3
41
Arbitration
AFM
answered on 12-Dec-25 13:48
Sir, In these type of question for the purpose arbitration, is it necessary that loan must be taken and deduction of interest, Can't we solve without assumption loan taken? [Video Time Stamp: 04:07]
latest answer
Arbitrage happens only when there is a buy and sell If u have to buy on spot u need money for which u need to borrow
Sai Eswar Kolli
CA Final
★ 28K+
3
44
Initial Margin
AFM
answered on 12-Dec-25 10:20
Sir, why did we considered Mean + 3SD, why not 4SD or 2SD? How did we make this assumption? [Video Time Stamp: 00:55]
latest answer
Ok Sir, Understood
Sai Eswar Kolli
CA Final
★ 28K+
2
41
Theory guidance
AFM
answered on 11-Dec-25 17:24
Sir, now practical problems can be solved with practice, however how shall we tackle theory because theory also carries good weightage but reading module for theory doesn't seem logical as module is vast. What shall be the approach ?
latest answer
Ok sir ! Noted !! Thank you!
Hrishikesh Pradhan
CA Final
★ 18K+
2
57
Updated
AFM
answered on 11-Dec-25 15:39
Sir is there an updated version upto the latest attempt for this?
latest answer
Yes. Updated the file for Sep 25. It is available in Past paper analysis folder in free resources. You can now check in notes / intro folder in the course or in Past paper analysis folder in free resources
Selvakumar R
CA Final
★ 165
1
46
market risk premium
AFM
answered on 11-Dec-25 15:35
Why both securities had the same market risk premium? [Video Time Stamp: 02:30]
latest answer
Because MRP = RM - RF RM is market return say NIFTY or Sensex and it does not change when we compute ER of any stock Same with RF
Pavan Naidu ca
CA Final
★ 0
1
45
True Value of Cost
AFM
answered on 11-Dec-25 10:56
Sir, does it mean that Doom Limited got a market share of 290 lakhs post-merger, by only holding 250 lakhs(for the shares issued by Elrond Limited), the difference is the implied cost for Elrond Limited, am I right, sir? [Video Time Stamp: 07:30]
latest answer
Yes that I what ICAI solution says
Murali Thripuraboina
CA Final
★ 3K+
1
45