Forums
Reason for not considering the changes in fixed assets
AFM
answered on 27-Jul-25 20:56
We directly used ₹4 Cr as given in the working. Is that because, when Capital Expenditure is explicitly mentioned in the question, we should use that instead of computing it from changes in fixed assets? Also, can you please clarify in what cases we should use the change in Net Fixed Assets + depreciation method — only when CapEx is not given?
latest answer
Fixed assets
Shinisha Rose R
CA Final
★ 5K+
1
228
FCFF AND FCFE
AFM
answered on 27-Jul-25 15:04
value of business -find PV of FCFF and proceed value of share-Find PV of FCFE and proceed am i right?
latest answer
They are referring to valuation of market share price and the company hence we have to arrive at share price / equity value
Muhammed Mubaris
CA Final
★ 190
3
271
Cross rate
AFM
answered on 27-Jul-25 02:08
Sir please tell if there is any straightaway method to get cross exchange rate with illustration no. 78 [Video Time Stamp: 00:00]
latest answer
Thanks a lot sir
Akshat Sharma
CA Final
★ 510
5
289
Query
AFM
answered on 26-Jul-25 06:41
MCQ no 7 ans 3 and 4 please explain
latest answer
ADR
Akash Nanda
CA Final
★ 25K+
1
257
Money market hedge
AFM
answered on 25-Jul-25 19:46
Sir I have a doubt in deciding in which country we will have to borrow in money market hedge and while purchasing put or call option nowadays we just have to pay premium and then cash settlement is done so why in this we will have to pay strike price * lot size
latest answer
Image from revision lecture
Akshat Sharma
CA Final
★ 510
4
307
APT Formula
AFM
answered on 25-Jul-25 08:51
P600 illustration 84. The formula used in this answer is AV1-EV1 for surprise factor But in the book they gave us EV1-AV1 Which one should follow? Why is there a difference?
latest answer
Apt
Balaji R
CA Final
★ 20K+
1
229
Estimate the Value of the Company
AFM
answered on 24-Jul-25 14:39
Sir in this sum the CEO is satisfied with the CMP of the share therefore he appoints the Consultant to get it valued right. So as we need to compare with CMP we are approaching the sum using FCFE and finding the Value of Equity and Per Share price. Am i right sir? I have attached a image and highlighted the part and my doubt is whether the wordings in the question is wrong Because " Estimate the Value of Company" means Estimate the Value of Firm right? Instead They should have mentioned it as Estimate the value of Equity right? [Video Time Stamp: 04:49]
latest answer
Yes you are correct
Mohanbabu N
CA Final
★ 3K+
2
310
Query
AFM
answered on 24-Jul-25 17:41
Sir, As given in the question how did you say that London - Copenhagen is GBP/DKK and Newyork- Copenhagen is USD/DKK. How to find out.?? [video Time Stamp: 03:51]
latest answer
Thank you for the clarification sir.
K Vamshi
CA Final
★ 14K+
4
333
Querry
AFM
answered on 24-Jul-25 09:34
Sir, I am unable to find the additional questions [video Time Stamp: 00:22]
latest answer
Addtl questions
Akash Nanda
CA Final
★ 25K+
1
255
EBIT Model
AFM
answered on 24-Jul-25 10:34
Sir, non cash item(depreciation)shouldn’t be considered, but their tax benefit should be taken into account. Is that correct? [video Time Stamp: 01:19]
latest answer
Interest is a cash expense - so when you compute FCFE you subtract post tax interest When you compute FCFF - you do not consider interest at all as cash outflow we are computing cf relevant for all financiers
Jayanth
CA Final
★ 6K+
3
207