Forums
Cost of retained earnings
Financial Management
answered on 20-Sep-21 16:01
Why is this formula applied. Why is tax and floatation cost deducted?
latest answer
Suppose if cost of equity is 20%, and where dividend is taxable @ 30% and Flotations cost are 5%, and if you invested â?¹ 1,00,000 i will receive 20,000*70%*95% 13,300 after paying taxes and floatation costs. So in case of retained earnings are reinvested by company you will not to pay taxes and flotation costs. you are expecting 13,300 on 1,00,000 investment. That is why Kr is adjusted Kr=Ke(1-t)(1-f)
Aman Mahajan
CA Final
★ 19K+
1
996
Cost of capital
Financial Management
answered on 21-Sep-21 13:57
How do market imperfections lead to unsystematic risk?
latest answer
If investor estimates expected return of a Stock - on CAPM (i.e using Beta formula )as 12% - but if the actual return is only 5%. This might have happened because the prices of that stock were very volatile and it was not getting valued properly due to some specific industry issues or sentiment for that company or promoter corporate governance issues or some other such factor. CAPM captures only systematic risk/return i.e what can be explained by past variation of returns when compared with that of the market and not this unsystematic risk/return
Aman Mahajan
CA Final
★ 19K+
1
611
NPO
Accountancy
answered on 21-Sep-21 14:00
Please explain the highlighted lines.
latest answer
CA foundation. Please go through this https://www.indigolearn.com/exam/CA-Foundation-Course-A-Complete-Guide
Vijay K
CA Inter
★ 9K+
12
681
Cost of capital
Financial Management
answered on 20-Sep-21 11:59
Why is it calculated only for 4 years and not for 5 years?
latest answer
Because for computing return you need end of the year number - so opening data for year 1 is not relevant
Aman Mahajan
CA Final
★ 19K+
1
564
Doubt
Accountancy
answered on 20-Sep-21 11:02
Whether the goodwill is come on asset side or what ???
latest answer
Wlcm bro
Balachandar S
CA Inter
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8
596
Notes
Costing
answered on 01-Oct-21 10:53
Sir in costing notes Newly added illustration questions(*marked added sums in lectures) and some RTP questions are not added Pls add all the new added questions in notes for all the chapters It may helpfull a lot..
latest answer
It has been added recently, please check. Let us know if you still have any missing questions
Balaji R
CA Final
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3
560
Resume
Others
answered on 20-Sep-21 13:37
What are the items include while preparing a perfect resume for articleship
latest answer
You should do it only if it can be corroborated. Put only those credentials in the resume that can be factually proven and which have substantial weightage to your academics or personality.
Saiprathap reddy Venna
CA Inter
★ 9K+
3
579
Cost of capital
Financial Management
answered on 20-Sep-21 16:05
Floatation cost should calculate on fave value or market price
latest answer
If they said the issue price as 100 then the above is right
Deepak Thinu
CA Final
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6
658
Resume
Others
answered on 20-Sep-21 12:15
What are the items including while preparing a perfect resume
latest answer
Internship, practical experience, projects, prizes and awards also can be given
Saiprathap reddy Venna
CA Inter
★ 9K+
2
524
Tds
Direct Taxation
answered on 20-Sep-21 11:09
What is the formula for grossing up of interest on fixed deposit ?
latest answer
Thank you
Siri S
CS Executive
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2
625