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Value of Right Vs Post Right Issue Shareholders Wealth

AFM

answered on 18-Jul-25 22:27

Sir, post-right issue shareholder wealth is derived using the TERP and issue price value, just like in the formula for the value of the right. Since both differ only in multiplying with number of shares, can value of the right be interpreted as a component or reflection of shareholder wealth? Please explain.

latest answer

Yes you are right Value of right is part of share holder wealth Unless there is value capture from new project as NPV there is no increase in shareholder wealth

Murali Thripuraboina

Murali Thripuraboina

CA Final

3K+

1

122

cost of capital

Financial Management

answered on 18-Jul-25 22:30

why under ytm method we are not deducting 1-tax on inflow but only for the interest part?

latest answer

Because tax benefit is on interest expense and not principal repayment In housing loan when u pay emi, tax deduction in your ITR is not on emi but only on interest paid by u Same way only int expense goes to P and l and gets tax benefit

 Preethi S

Preethi S

CA Inter

2K+

1

93

Professional ethics

Auditing

answered on 25-Jul-25 08:21

Please someone explain. Why CA in practice do advertisements about his classes in social media become guilty. If so there are a lot of CAs who do this in the real world ? Are they falling under guilty of professional misconduct ?

latest answer

Thank you mam.

Balaji R

Balaji R

CA Final

20K+

6

137

Rights Issue

Financial Reporting

answered on 21-Jul-25 15:03

Sir i in the example taken adj factor calculated as 14/15 = 0.933 or (1/1.0714) And While using the Right Adj Factor formula it is taken as 100/93.33= 1.0714 Is the value taken in reverse in case of example, i did not understand why it is reverse [video Time Stamp: 13:35]

latest answer

You can compute it both ways.

R Yashwanth Kumar

R Yashwanth Kumar

CA Final

87K+

1

106

H model

AFM

answered on 18-Jul-25 17:55

the yellow part consists of supernormal portion from 0 till T. which is time, where T is known. therfore, should the denominator for the formula be (1+R)^t (being definite) or Ke-g(which is given in formula) . am i missing anything,sir? [Video Time Stamp: 05:24]

latest answer

H model

Jayanth

Jayanth

CA Final

6K+

1

126

Perpetual Cashflow

AFM

answered on 19-Jul-25 16:10

"Perpetual Cashflow at the end of 5th year is given as ₹ 10,260 Lakhs". What's the significance of the word Perpetual in the sentence ? Doesn't it mean that cashflow given is the future cashflow of the business for perpetuity except not given at present value ( i.e perpetual CF (x) PVF of 5th year ). [Video Time Stamp: 00:54]

latest answer

Yes your underside correct

Mohanbabu N

Mohanbabu N

CA Final

3K+

7

134

Step - 7 Receipt and inspection of material

Costing

answered on 21-Jul-25 15:34

Sir, who will prepare Good received note and to whom it should be send because when the materials are received by the stores they will store, unpacking, inspect the material as per the terms and conditions of purchase order. . Store department will ispect the goods then who will send send the goods recevied note whether by factory or stores while GRN received by suppiler [Video Time Stamp: 12:21]

latest answer

Generally , Stores departement receives the goods, inspects them and prepares the GRN. This GRN is forwarded to purchase department - confirming receipt and to accounts department - so that when invoice is received - they can pay the invoice. Supplier generally asks for a receipt stamp on invoice sent by supplier which is taken back by the transporter.

21SCO08 mahalakshmi

21SCO08 mahalakshmi

CA Inter

1K+

1

126

Inherent Limitations Meaning Audit

Auditing

answered on 22-Jul-25 10:20

What is Inherent Meaning and Explain

latest answer

These are unavoidable so we can’t give 100% assurance or guarantee about our examination. Looking at volume of transaction, it’s impossible to check all of them. Management prepares financial, uses assumptions , frauds could be there.. all these are considered to be inherent. Please refer the video content for multiple examples on the same

V Ajith Kumar

V Ajith Kumar

CA Inter

1K+

2

187

GOOGLE'S VISSION AND MISSION

Strategic Management

answered on 21-Jul-25 12:36

[INSIGHTS] Sir, Google's Vision & Mission seems to refer space programs, the word "Worlds information" seems to be a broader vision particularly when we think of space missions such as spacex. [Video Time Stamp: 02:20]

latest answer

Yes

Vinod Kumar

Vinod Kumar

CA Inter

11K+

1

105

Charge OF GST

Indirect Taxation

answered on 22-Jul-25 11:16

What is meant by Charge of gst? Explanation [video Time Stamp: 00:10]

latest answer

It means imposed

V Ajith Kumar

V Ajith Kumar

CA Inter

1K+

3

172