Forums
Example
AFM
answered on 31-Mar-26 07:27
Please provide us one numerical practice example related to this. (if possible) [Video Time Stamp: 00:06]
latest answer
Pricing is just like a bond. You determine a yield and the price the security From borrower perspective if int rate of alternative borrowing 5% he would want a similar rate here . He may sacrifice some yield if quality of assets is high and risk of default is low. If rating is poor the he may want a higher yield
Vinod Kumawat
CA Final
★ 2K+
1
205
illustration 2
AFM
answered on 30-Mar-26 15:19
sir is it year 0 and year 1 with respect to construction period, why we take ticket price 220 in year 0.actually period of operations starts from year 2 onwards. [Video Time Stamp: 18:56]
latest answer
It is a slightly weird assumption that Ticket price off 220 that is given in the question is for Year zero when no specific mention abt the same has been made in the question. This is how ICAI has solved it - while we can use our judgement and correct it. I am embarrassed to say that ICAI will not award marks for a logical approach by student when they have followed an illogical approach in their Study material 😔
saipriya v
CA Final
★ 510
1
192
Cross Rates - Illustration 9
AFM
answered on 30-Mar-26 18:59
Why are we considering Ask rate for GBP SGD as the base currency for that transaction will be pound. [Video Time Stamp: 40:19]
latest answer
Ok. No worries. happy to help
Vidyashree Anand
CA Final
★ 0
3
125
Short cut step for exam - use during reading of question
AFM
answered on 30-Mar-26 08:13
1.Change = old - new / old , compare with % of CM policy 2. if less then igone ,otherwise allocate in cm ratio .. 3 Nos = Allocated Amount / New Price Imp. Note before rebalancing debts will same, and after balancing Port. value will same. [Video Time Stamp: 40:24]
latest answer
Yes
Vinod Kumawat
CA Final
★ 2K+
1
119
Ratios of shares to be exchanged
AFM
answered on 30-Mar-26 07:35
In question they have given " a share for share exchange" i.e 1lakh of shares of C ltd to be exchangd with 1 lakh shares of B ltd is what I assumed. WHy are we taking MP as ratio base. Kindly explain. [Video Time Stamp: 13:14]
latest answer
Share to share
Kiruthika Senthilkumar
CA Final
★ 3K+
1
204
illustarion no 1 international financial management
AFM
answered on 30-Mar-26 07:28
sir why we take working capital adjustment amount as 70/- in year 5 [Video Time Stamp: 40:54]
latest answer
Wc
saipriya v
CA Final
★ 510
1
110
terminal cashflow
AFM
answered on 29-Mar-26 16:53
can u please explain more clearly about terminal cashflow ???
latest answer
It is pv of all cash flows from a year till infinity We use sum of GP till infinity formula D1/(ke-g) Similar to what we taught in security valuation equities for Gordon growth model
Hemanth kumar Kapuluru
CA Final
★ 2K+
1
102
Doubt regarding Buy Forward and Sell Forward
AFM
answered on 29-Mar-26 04:51
Sir have doubt regarding when to Buy Forward and when to Sell Forward? Suppose in this problem if Ideal DM/CAD forward for 3 months is .680 (Costly) and Actual DM/CAD forward for 3 months is .670 (Cheap) What then 1st step is what? (whether Buy forward or sell forward)
latest answer
Buy what is cheap if forward is cheap buy it
G Chandrakanta
CA Final
★ 15K+
1
111
Spot and forward
AFM
answered on 28-Mar-26 20:57
Sir please explain the difference between 3 months Spot and 3 months Forward.
latest answer
Understood sir, Thank you.
G Chandrakanta
CA Final
★ 15K+
2
127
Computation of e
AFM
answered on 26-Mar-26 16:43
Good day Sir! In case they have not given the value of e in exam, can we compute that on the calci like how you have taught in one of the introductory videos and use that? or is it compulsory to use the simple interest method of computation. We can also give a note of the same computation right? [Video Time Stamp: 05:24]
latest answer
Depends on the question If they say use continuous compounding and do not provide value of e then use the calculator trick else use other methods
Varshini Rao
CA Final
★ 2K+
1
116