Forums
Cost of capital
Financial Management
answered on 04-Jun-21 09:26
Sir in the below question how did they took 12 percentage as coc just randomly . They computed it using irr ok but I have a doubt from many days how to take two rates randomly for calculating Irr it takes more time to just select random rate and calculate npv then if it is not negitive again we should take higher rate ,it takes so much time is there any trick how to select random rates in which Npv is negative and positive ?????
latest answer
usually try 10 / 15% you will get a broad idea
Enuguru Sai Nithin
CA Final
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1
590
AS 5
Accountancy
answered on 03-Jun-21 10:09
Can anyone explain how it is treated as prior period item? What is the error or omission in this case?
latest answer
The final bill must be accounted in the year 20X8 but it was not accounted. Since it was accounted in 20X9, it is considered as prior period item because of ommission
Himanshu Somani
CA Final
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1
667
Risk analysis in capital budgeting
Financial Management
answered on 03-Jun-21 16:14
Sir in the problem part B the answer given by them is not understandable can u please explain .. Because to calculate using RADR we need risk free return plus risk premium . In question we only have risk free return . Then how to calculate using RADR
latest answer
The question does not provide risk premium. It only asks about which project would use a higher discount rate. By looking at the certainty factors of both the projects, the certainty is more more project N and hence it is less risky. Whereas project M is more risky with more return or premium and likewise a higher discount rate
Enuguru Sai Nithin
CA Final
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3
700
Capital structure
Financial Management
answered on 07-Jul-21 21:16
Sir can you explain the part B of the question I didn't understand how did the increase in EBIT is calculated .
latest answer
Pls check concept of indifference point videos - it is the point where EPS under alternative 1 & 3 are same
Enuguru Sai Nithin
CA Final
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3
559
Individual module
Others
answered on 02-Jun-21 11:06
Pls extend the individual chapter sake for CA inter it will be highly helpful
latest answer
Haa yes I too want. Plzz extend sir
Tamanna Khandelwal
CA Inter
★ 0
1
559
Section 7 (7) (c)
Corporate & Other Laws
answered on 02-Jun-21 18:55
Sir... Incase of removal of name (X Ltd) of company from register..... Can the company incorporate again with the same name (X ltd) or it should incorporate with some new name (Y Ltd)?
latest answer
Yes. Same procedure will have to be followed for Reservation of Name, taking approval etc.
Girinath A
CA Inter
★ 765
1
607
Itc on building repair
Indirect Taxation
answered on 09-Jun-21 11:38
Sir itc is allowed on building repair if this repair is not a capitalised nature
latest answer
Okay, Sir, I want to refer to the same more.
DEEP VICKY
CA Final
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17
1K+
Tax revision
Direct Taxation
answered on 02-Jun-21 11:16
Hello Ma'am/Sir How to prepare/revise the taxation paper one day before the exams? Should we prepare from notes only or should we solve few questions too?
latest answer
Thank you
Neha Gupta
CA Final
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4
693
Section 54 EE
Direct Taxation
answered on 02-Jun-21 10:27
What's the units as notified by Central Govt ... What does the UNIT refer in the sentence
latest answer
Great thank you sir ð???
Deepak Raja
CA Final
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2
762
Cost of capital
Financial Management
answered on 02-Jun-21 12:01
Sir in this problem Redemption value means we redeem means we pay , so 121 rs it is treated as cash out flow na . And intrest of 7.5 also we pay it is going out so it is also cash out flow . And net proceeds of rs 100 is cash inflow . Then npv should be PV Of CI - PV of CO so 100 - (75 + 28.425 ) after taking in to present value so Npv is -3.425 na It is my doubt where am I wrong they considered intrest and redemption value as cash inflow ??? Why Please reply sir
latest answer
Thank you very much sir
Enuguru Sai Nithin
CA Final
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654