Forums
TAX SAVING (Interest as Tax Shield) (MY POV)
Financial Management
answered on 26-Sep-25 10:40
Sir, it is very clear that the interest component of the Leveraged company stands as a tax shield for such company. However the they are going to pay interest on the debt and also at the very end (PAT) they might also want to issue dividend, which is eventually lesser when compared to the company which has no leverage. MY POV , I agree that debt fund helps us to gear the operational efficiency, and the interest component acts as a tax saver. but in the end the profits retained are always lower. And given that, company run the business on its capacity to earn more profit, unless its a non profit company. [Video Time Stamp: 05:01]
latest answer
Yes
Vinod Kumar
CA Inter
★ 11K+
1
87
Cost of capital
Financial Management
answered on 26-Sep-25 06:32
How is the amount corresponding to equity capital still the same 40 lakhs despite a fall in price per share (20 to 16) in the 2nd part of the answer
latest answer
Because Equity is taken at book value pls look at heading of 1st table
Vathana .M
CA Inter
★ 100
1
91
Variation in answer when calculated with full figures
AFM
answered on 26-Sep-25 06:31
Hi Sir, I have tried solving this sum using full figures. I got deviation in expected values for year 1,2,3 as 85,40,000 , 98,61,000 and 74,29,000 respectively(which is matching with the figures in lakhs).. Till this, no doubts.. When I calculated SD with full figures , I am getting 4544.06( square roots of 20648557 ). But in Solution, it is 14.3696(square root of 206.4854). I am not getting the logic behind this.. Could you please clarify?
latest answer
Because 206 is not in lakhs (10 power 5) but lakh square (10 power 10)
Shandhiya T
CA Final
★ 14K+
2
146
From 102
Others
answered on 26-Sep-25 22:50
Is it necessary to get physical print of form 102 and have signed by principal??
latest answer
Yes. It has to be on stamp paper.
Nakul Dixit
CA Final
★ 4K+
1
115
interest
AFM
answered on 25-Sep-25 11:30
interest also will be one of our cash flow so i have doubt that why e are not considering interest only the tax benefit on interest is calculated
latest answer
That is the formula. PV of OP CF + PV of tax benefit on Int + PV of subsidies
Bala Manoj Kumar.S
CA Final
★ 90
1
92
SPOM Exam
Exams
answered on 30-Sep-25 08:04
Dear Sir/Ma"am, I completed my Inter in Jan 2021 and register for final only in Feb 2025 i am going to give my exam at Jan 2026 Can i complete my SPOM before membership?or mandatory befor Jan Exam? Thanks in advance
latest answer
Group 2 of final or inter?
sabarish s
CA Final
★ 2K+
5
149
PV: Discounting leading to loss?
Financial Management
answered on 25-Sep-25 07:25
Good Morning sir, So in case of PV, more number of discounting leads to diminish the value of investment, because as i observe that in case of FV, the more compounding period within annually, tends to increase the value of PV in future, BUT in case of PV, more discounting periods within annually, tends to diminish the value of investment. THE current case; CF= Rs.5,00,000, & PV comes to Rs. 3,43,308 when discounted annually, which is a good sign, but when discounted half yearly, PV turns out to be Rs. 7,02,358 which is more than the FV, which i guess is not a good sign for the company. Am i correct to understand this way? [Video Time Stamp: 04:42]
latest answer
Yes
Vinod Kumar
CA Inter
★ 11K+
7
101
Foundation semptem 2025 solution
Accountancy
answered on 26-Sep-25 06:37
Need accounting for foundation 2025 september solution
latest answer
Okay.
vishnu shukla
CA Foundation
★ 820
1
116
Strategy level
Strategic Management
answered on 06-Oct-25 17:01
the leadership headed by CEO Mr. Rajiv, implemented structural changes to improve decision making. The company embraced a decentralized approach enabling regional teams adapt their sales and marketing strategies to local market conditions. Additionally, Solar Tech partnered with financial institutions to offer easy financing options, making solar energy more affordable.
latest answer
solutions to MCQ discussed here https://www.youtube.com/live/pOyiv6X1PwA?si=BXVDcVevuLR2oefe
Sinh Abhi
CA Inter
★ 0
2
101
Decimal values
Financial Management
answered on 24-Sep-25 19:01
sir, in your case you have taken 5 decimal values after point. Is it because of the reason that the CF= 1,00,000 has 5 zeros in it and to have a precise answer we are filling these 5 zeros with decimal value? Because i get wrong answer (Rs. 3,00,000) which is straight away derived by the formula using only 2 decimal value after point. [Video Time Stamp: 12:25]
latest answer
ok sir, thank you
Vinod Kumar
CA Inter
★ 11K+
4
106