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Returns attributable to sheer skill of portfolio manager
AFM
answered on 04-Apr-25 10:25
Sir, in this sum, why don't I get the answer we get using CAPM for Alpha if I apply this formula Rx= Alpha + Beta(Rm)
latest answer
Thank you sir
Karthikeyan Ramanand
CA Final
★ 0
2
230
Portfolio Management
AFM
answered on 02-Apr-25 18:03
Sir how the 3rd formula for Covar derived?
latest answer
Okahyyy .. thankyou sirrr😊😊
R M
ACCA Professional
★ 4K+
5
461
FCFF/FCFE
AFM
answered on 02-Apr-25 12:57
While finding value of firm and value to equity, we have to discount FCFF and FCFE with Ke or WACC? or WACC for FCFF and Ke for FCFE? I got confused.
latest answer
KE FOR FCFE WACC FOR FCFF
Ali S
CA Final
★ 8K+
1
272
wacc
AFM
answered on 02-Apr-25 13:01
Why haven't we discounted PAT of five years using WACC, as interest and value of debt is available?
latest answer
PAT is earnings for equity shareholders You cannot use WACC WACC is used only when cash flow pertains to both equity and debt Yuu can use WACC if u are using FCFF or ebitda or EBIT
Ali S
CA Final
★ 8K+
1
280
Dividend adjustment
AFM
answered on 02-Apr-25 10:59
Why are we reducing dividend at the end while in ill 20 and others sums, we added the dividend to arrive at NAV
latest answer
Kindly ignore. Understood.
Pradeepa Narayanan
CA Final
★ 5K+
1
270
July 15 Q1
AFM
answered on 02-Apr-25 07:10
Here for july quarter we have taken rate as 8+2 is this because quarter starts from April and hence taken april rate of 8%. As rate for 15 july is 8.4 %
latest answer
Rate
Hrishikesh Pradhan
Qualified CA
★ 18K+
1
342
convexity formula
AFM
answered on 02-Apr-25 07:14
why delta y square is not multplied, 2 was in denominator and 100 we can understand.
latest answer
I had been multiplied 0.001 power 2
Sairam Pv
CA Final
★ 610
1
300
Calculation of net gains
AFM
answered on 01-Apr-25 15:51
Sir, here Rohit and bros borrowed $493,827 for an interest of $6173 which will be repaid at the end of 3rd month from the export receivables in dollars. Which means they don't need to convert the invested rupees into dollars at the spot rate of 3rd month. They have converted and invested $493,827 and earned an interest of Rs. 829,629. Then this must be the net gain earned from the operations. Why are we deducting the interest amount of Rs. 345688 (6173*56) from Rs. 829,629 to get Rs. 483,941
latest answer
Thank u sir. Understood
Nitin Raj
CA Final
★ 270
2
340
ROCE
AFM
answered on 31-Mar-25 11:37
For finding ROCE, the numerator should be EBIT(1-t), right? as tax amount won't be available to debt holders or shareholders.
latest answer
Q is from Nov 19 link below https://www.indigolearn.com/resources/CA-RTPs-MTPs-Suggested-Answers/Final/2017-2023/Paper-2-Strategic-Financial-Management/Suggested-Answers/4b0bea2805644b5586211734c61b3397/CA-Final-New-Strategic-Financial-Management-SFM-Suggested-Answers-Nov-2019/33b025c9bd1043bc84c8f8c9baf0a6b9/r ROCE is calculated pre tax as well as post tax and as you rightly said post tax is usually preferred. However icai chose to follow pre tax method in this question You can make an assumption compute post tax and should ideally get full marks
Ali S
CA Final
★ 8K+
1
341
Confirmation of answer
AFM
answered on 30-Mar-25 13:48
Both answer a and b are correct na ?
latest answer
Achaa achaa, understood !!
Hrishikesh Pradhan
Qualified CA
★ 18K+
2
229