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Marketable securities

AFM

answered on 05-May-25 20:04

In the question , they said that marketable securities of each company is 40L then why we took combined only 40L, is it because only acquirer part is considered

latest answer

Debt they gave sep values Mkt sec they gave combined value - that is the assumption

Hrishikesh Pradhan

Hrishikesh Pradhan

Qualified CA

★ 18K+

1

304

May 2025 Question paper

AFM

answered on 05-May-25 11:42

Sir in Q1 (a) Why can't we take roe as r and find b

latest answer

Ok sir thank you

Sathya k

Sathya k

CA Final

★ 9K+

2

437

BVPS

AFM

answered on 05-May-25 11:18

In book value, i recomputed it as Total shares =105L Value per share= 5 Eq share Cap= 525L R & S= 1300L Net Worth= 1825L No. of shares= 105L BVPS= 17.381 Why is it wrong, as post acquisition i will issue bonus and split then my net worth will also get revised

latest answer

Achaaa ! Understood Sir !!

Hrishikesh Pradhan

Hrishikesh Pradhan

Qualified CA

★ 18K+

2

274

Inflation rate in India

AFM

answered on 04-May-25 09:33

Sir, the question says that the inflation rate in india is 6% and is expected to decrease 0.5% every year, why can't we assume that the inflation for year 1 will be (6% * 0.95) 5.7%

latest answer

Usually they do not give Questions like that - they will be every specific If you make such assumptions you will not get marks. Assumptions have to be reasonable considering the situation

Nitin Raj

Nitin Raj

CA Final

★ 270

1

319

Flexibility in the case of futures

AFM

answered on 03-May-25 18:48

Can you please elaborate on the contrasting flexibility in the case of stock futures and index futures?

latest answer

Flexibility

Ruthvik Reddy Adala

Ruthvik Reddy Adala

CA Final

★ 5K+

1

316

dividend on short futures

AFM

answered on 03-May-25 12:37

if dividend is paid by the stock/index during the time we have short sold futures, it is inflow or outflow to us for finding net gain/loss. please explain.

latest answer

Dividend

Ali S

Ali S

CA Final

★ 8K+

1

313

Tax on iterest

AFM

answered on 02-May-25 17:22

When we calculate FCFF using EBIT(1-T) We are applying taxes on EBIT, Which includes interest.But in reality,we don't pay tax on interest-its tax deductible. So aren't we overestimating the tax and understanding FCFF

latest answer

Nope It means when we value using FCFF Value of debt is included When you do using FCFE value of debt is to be added to it

P.udaykumar Pasupulati

P.udaykumar Pasupulati

CA Final

★ 2K+

3

354

Interest payable

AFM

answered on 01-May-25 13:25

Sir, I'm assuming the second part of the question is a cap option, if yes why are we not substituting the benefit from cap option(Rs.46,00,000) with interest payable.

latest answer

understood sir.👍

Nitin Raj

Nitin Raj

CA Final

★ 270

7

226

Mutual Funds

AFM

answered on 26-Apr-25 19:21

previously Mr. Alex was investing 10% of this time to manage his portfolio by investing in equity shares and earn a return of 15 %. Now by investing his entire portfolio into Multicap fund assuming he will spend the 10% of his time on profession and earn income in same proportion of 15%. My doubt, currently instead of his professional income up by 15% (Same returns earned while investing in shares) why we are considering 10 % as additional professional income.

latest answer

Because Question clearly said so "If he spends this time on profession, his professional income will go up in same proportion."

Shinisha  Rose R

Shinisha Rose R

CA Final

★ 5K+

1

310

Effective interest rate

AFM

answered on 26-Apr-25 19:18

Sir, why are we not deducting the cash inflows from cap and add the floor outflows to interest rate while calculating average overall effective interest rate

latest answer

Check from minute 15 30 to 17.00 i clearly said that each interest flow already includes CF pertaining to CAP and floor So those CF have already been considered in computing the Effective Int rate

Nitin Raj

Nitin Raj

CA Final

★ 270

1

292