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Security Valuation - Fixed Income - 14th question
AFM
answered on 06-Sep-26 19:16
Dear Sir, In Bhramstra Question no. 14 in Bootstrapping method, while calculating rates I have a query. I attached below. Which method is correct. In both methods rates may differ. Kindly explain.
latest answer
Understood sir. Thank you.
PG Bhanusree
CA Final
★ 3K+
4
91
Free cash flow valuation
CFA
answered on 27-Aug-26 13:33
These 2 formulas find out the value of equity but in one formula we do subract Mv of debt and another formula we add net borrowings why?? Equity value = firm value - Market value of debt FCFE = FCFF + NET borrowing
latest answer
Fcfe and equity value
Dhakshana Dhakshana
CFA L2
★ 18K+
1
50
Book value calulation
CFA
answered on 27-Aug-26 13:33
So the standard method we use to find BV of a company is asset-liability = BV but in CFA questions they just took the equity share cap / totel eq sh o/s and arrrived at bv per sh please explain
latest answer
A-l = equity So what they are doing is simple and easy
Dhakshana Dhakshana
CFA L2
★ 18K+
1
40
No of years calculation
Financial Reporting
answered on 31-Aug-26 10:22
Sir, In this question They have given apr 2011 to mar 14, which is 3 years in total. But why we are taking 4 years to calculate Fv and in amortization table even the % of default is given only for 3 years only sir?
latest answer
Loan is for 4 years and hence discounted over four years. The accounting is required for 3 years as per question.
Vijay Ramesh
CA Final
★ 2K+
1
64
RTP Nov 26
AFM
answered on 26-Aug-26 20:49
As ICAI asked a practical question 11 but in material it is just a theory concept and if icai asks outside the material questions what resources should i cover in order to make sure we can attempt exam
latest answer
Do not over think abt it. Assume you will be able to answer 85 marks only Focus on concepts and prepare for all the questions that we have given in the material, including the Brahmastra course, and after that, do your best there is no way anyone can imagine what question ICAI will ask in the exam. It is impossible for anyone to predict so there is no point wasting any time pondering over it. Hence you have to be thorough with all the questions in p 600+ and the Brahmastra course
Prabhjot Kaur
CA Final
★ 880
1
58
Equities
CFA
answered on 26-Aug-26 19:30
Sir how does it change when there are preference shares?
latest answer
Networking capital plus Netflix assets on the asset side will obviously equal to equity share capital plus preference, capital plus debt, so you’ll take a cost of that also in computing weighted average cost of capital 
Kaarthick Abishek
CFA L1
★ 0
1
47
Business valuation
AFM
answered on 26-Aug-26 16:11
In EVA if market value weight given and we completed wacc using Market rate - then in capital charge (invested capital) we will consider only Market value. Because we have calculated wacc using market weight. .? [Video Time Stamp: 02:24:03]
latest answer
Yes
Vinod Kumawat
CA Final
★ 2K+
1
68
Doubt
AFM
answered on 26-Aug-26 14:28
Here for e^0.0049 also we have to do interpolation sir [Video Time Stamp: 09:39]
latest answer
yes
pavan kumar
CA Final
★ 4K+
1
78
Shelf prospectus
Corporate & Other Laws
answered on 01-Sep-26 17:54
If investor opts for exit option for amount invested by him and refund is to be processed within 15 days, if company fails to process the refund within 15 days will company be liable to pay any penalty or interest. [Video Time Stamp: 23:01]
latest answer
Yes in case of any delay from the company's end the company will be liable to pay interest to the investor @12%
Gurukanta Singh
CA Inter
★ 21K+
1
69
Cfa exam structure
CFA
answered on 26-Aug-26 08:35
Sir, in exam 1 vignette cannot be of different subjects and but can be if different modules of the same subject.?? . And roughly what could be the percentage I should aim for in the mock tests.
latest answer
Yes to q 1 70% plus question 2
Kaarthick Abishek
CFA L1
★ 0
1
50