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In Devaluation any decrease .?
AFM
answered on 09-Apr-26 21:16
is any example which is decrease in case of devaluation.? [Video Time Stamp: 07:30]
latest answer
Devaluation will have impact like what we discussed in class. It cannot have opposite impact
Vinod Kumawat
CA Final
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186
Yield calculation
AFM
answered on 09-Apr-26 19:09
Sir, in second part, while computing yield at Price = 97.60, when 4 decimal points are taken for PVF, I arrive at exact Rs. 97.60 at 12% yield. Is the answer for 12.00% correct in exam perspective?
latest answer
Depends on question how many decimals they ask you to use
SANJITHA
CA Final
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153
Illus 6 & illus 36
AFM
answered on 09-Apr-26 17:18
Sir, In these both sums, exchange ratio is in line with Market price. What if they are not - in such case how should I compute the Market cap post merger...especially value of Target company - in which of the following way should I compute: 1. Sum of : M.C of Acq. company = Pre merger shares*M.P.S M.C of target company = Pre merger shares of Target*M.P.S of Target Synergy 2. Revised no of shares post merger*M.P.S of Acq company + Synergy [Video Time Stamp: 06:08]
latest answer
In such cases they will specify more clearly what they want. They may give indications of post merger PE or price If nothing is mentioned you can solve using both methods and write as alternative solution
Swathi S
CA Final
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115
Cross Currency
AFM
answered on 09-Apr-26 17:11
Hi Sir, Good day! I have solved in the following manner, please correct me if the steps are wrong 1) Sold USD bought EUR at $1=EUR 1.44 We will have $1000,000 *1.44= EUR14,40,000 2) Sold EUR and bought USD from market at ask price of 1.445 we will have 14,40000/1.445= $996539.79. Loss = sold 996529.79-1000000= $3460.21 3) Loss in INR using ask rate as we are the dealer and would sell $ at higher rate at 31.45 $3460.21*31.45= 108823.60 [Video Time Stamp: 17:54]
latest answer
Hi Varshini, This is correct. But i think i explained in the video you will have to buy back 1 Mio USD and for that you will require more Euro ICAI has solved questions line what i mentioned above
Varshini Rao
CA Final
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126
Serial correlation
AFM
answered on 09-Apr-26 08:37
In illustration 3, Logic behind >40% is not weak, what is the criteria or corr percentage can be considered as weak? sir
latest answer
Based on market behaviour over time and not based on any formulae
Tharun .M
CA Final
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90
Gain or loss on merger
AFM
answered on 08-Apr-26 18:49
Sir, If the question is about gain or loss on merger. We are supposed to calculate in terms of EPS or market value or both? [Video Time Stamp: 04:12]
latest answer
Usually market value Change in Eps is usually termed as accretion or dilution No harm in computing for both eps and market value
Swathi S
CA Final
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99
Request for additional question with put option
AFM
answered on 08-Apr-26 18:51
Please sir provide additional question for practice based on put option...
latest answer
Hmm will see if we can add
Vinod Kumawat
CA Final
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93
Interest computation
AFM
answered on 08-Apr-26 15:18
Sir for computation of interest we considered cashflows as here Buy USD 1,00,000 @ 75.22 (INR outflow) Rs. 75,22,000/- Sell USD 1,00,000 @ 75.40 (INR Inflow) Rs. 75,40,000/- Hence Net cash Inflow. But you considered as Net cash outflow and Interest of Rs. 275 were added to total Early deliver charges. As per my understanding Early deliver charges will be Swap Loss - Interest on net cash inflow (i.e 20,000-275= 19,725) Is this correct sir? [Video Time Stamp: 06:56]
latest answer
Understood sir, thank you
G Chandrakanta
CA Final
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147
iv) Rights unsold
AFM
answered on 08-Apr-26 12:50
Sir, In all these right issue problems, are we assuming that all shareholders subscribes to the right share offered to him. And here in the last scenario, he loses the opportunity to earn Rs. 1600 by not selling the right share, will the 250 shares he holds through right issue have any impact in his wealth? [Video Time Stamp: 05:19]
latest answer
Ans to first question - yes assuming all shares are subscribed to. In last part - if he subscribes to issue, his share count increases and even though share price falls there is no change in wealth If he does not subscribe and does not sell rights - he is at a loss as share price falls and he has same number of shares
SANJITHA
CA Final
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111
Dividend growth rate from Y3 onwards
AFM
answered on 08-Apr-26 12:48
Sir, Are we taking growth rate of dividends for Y3 as 10% because the growth rate for earnings is mentioned in question as 10% from Y3. For dividend, growth rate is not directly given but payout ratio is provided instead. Here is it like, to maintain the same growth rate as earnings; the pay-out has to be 50%. Is this interpretation right? Even when growth rate of dividends arrived using D3 and D4 value (computed in answer using pay-out), it is same as growth rate of earnings i.e. 10%. [Video Time Stamp: 12:14]
latest answer
No. Why will we compute DPS growth rate when Payout ratio is specified for a period
SANJITHA
CA Final
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173