powered by logo

Forums

Po for year 1 and year 2

AFM

answered on 22-Nov-25 16:56

Sir, to calculate po for year 1 and year 2 we need use D1/ke but we took directly D1 and D2 like 4.8 and 5.76

latest answer

P0

Naga Srinu Peruboina

Naga Srinu Peruboina

CA Final

★ 1K+

1

241

Money Market Hedge

AFM

answered on 21-Nov-25 20:00

Sir, whether this logic applies here " If the premium is greater than the interest differential, then borrow domestic currency Else borrow foreign currency". Because Forward premia % = (F-S)/S = (USD1.5455/GBP-USD1.5617/GBP)/USD1.5617= -1.037%, Interest differential = (7%*6/12)-(6%*6/12)= 0.5%. whether this calculation correct, sir? [Video Time Stamp: 07:25]

latest answer

Logic is correct -and so is working for first part. Second part interest rates are always multiplied and divided and not added or subtracted . Also since quote is USD per GBP in second working should be ( 1+6% x 6/12)/(1+7% x 6/12) -1

Murali Thripuraboina

Murali Thripuraboina

CA Final

★ 3K+

1

196

Que 7 Business Valuation

AFM

answered on 21-Nov-25 19:55

Here why they are not deducting the interest amount we are given the cost of debt ... we can find the amount of debt by applying the debt equity ratio on capital expenditure if i am not wrong

latest answer

Deduct Interest amount where? FCFF formula does not require us to deduct interest expense

Gauri Shete

Gauri Shete

CA Final

★ 5K+

1

169

PUblic issue

AFM

answered on 21-Nov-25 19:52

sir why don't we increased the post issued shares 6.944 crores in public issue [Video Time Stamp: 23:15]

latest answer

Because it is either or. Either public issue or rights issue. 6.944 is rights issue share count. that cannot be added to public offer share count

Pavan Naidu ca

Pavan Naidu ca

CA Final

★ 320

1

191

Timing option-ill 30

AFM

answered on 21-Nov-25 10:36

Sir, usually we calculate u by dividing move up price by current price, but in this question why have you taken PV of savings instead of initial investment value. In earlier sums also we have divided by initial investment amount.

latest answer

In these kind of timing option questions that is the method ICAI is suggesting Even though I disagree with the method u have to follow the method for marks

Pradeepa Narayanan

Pradeepa Narayanan

CA Final

★ 5K+

1

162

Que 27 icai module- Advance Cap Budgeting

AFM

answered on 20-Nov-25 20:23

In this Question why 55000 replacement value 55000 is not discounted as it is replaced at wnd of year1,2,3 shouldn't it be discounted accordingly

latest answer

EAC

Gauri Shete

Gauri Shete

CA Final

★ 5K+

2

200

Portfolio Risk - Sharpe Index Model

AFM

answered on 20-Nov-25 11:49

Sir, in Portfolio variance of sharpe index model, does "Xi" means weight of the stock? [Video Time Stamp: 07:00]

latest answer

Yes

Sai Eswar Kolli

Sai Eswar Kolli

CA Final

★ 30K+

1

219

Advance Capital Budgeting

AFM

answered on 20-Nov-25 09:31

If in this que the salvage value was too high for prob 0.5 then there would be chances that it would be best case right .

latest answer

Best Case / worst case depends on NPV and not just salvage value alone Base considers only one probability. ENPV takes weighted average of all probabilities of CF

Gauri Shete

Gauri Shete

CA Final

★ 5K+

2

234

Weighted Beta

AFM

answered on 19-Nov-25 06:08

Hello sir, In this is problem in ICAI material, to calculate weighted Beta, Dividend Yield is calculated as a percentage of Market price. Usually dividend is paid on face value. Can we make an assumption that market prices are face value of the share?

latest answer

Dividend % in % of fv div yield is % of cmp

Shreyas Nayak

Shreyas Nayak

CA Final

★ 0

1

223

Jan 2026 CA final

AFM

answered on 18-Nov-25 10:39

Sir..in free resources the file of important questions for AFM important questions is not accesible...please tell me how to download it??

latest answer

Thank you sir

Aditya Kulkarni

Aditya Kulkarni

CA Final

★ 0

2

196