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why we take Market value for calculating weights of each share, instead of face value ?

AFM

answered 1 hr ago

Dear sir, for all the remaining problems you have considered the face value of the shares to compute the weights of each share. but in this question you have considered the Market value to compute weights of the each share. please explain this

latest answer

Where did I use Book Value - which illustration please?

B. Dinesh

B. Dinesh

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Doubt on withholding tax

AFM

answered 1 day ago

Sir, 1.What is the meaning of withholding tax? 2.Where is it impacts?

latest answer

WHT is TDS on foreign remittances Form 15CA / CB Sometimes WHT can be claimed by foreign country recipient if there is a DTAA ( like input tax)

Hanumanthu Rajesh

Hanumanthu Rajesh

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28

ICAI RTP MCQ 2024

AFM

answered 2 days ago

In this below question in ICAI RTP MCQ 2024, isn't Growmore Ltd the originator and MAC fin corp the investor? ICAI RTP answer is given as MAC Fin Corp to be the originator. Please clarify Sir.

latest answer

Thank you so much Sir. Got the doubt clarified.

Dheebhan Mahalingam T

Dheebhan Mahalingam T

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42

Mutual Funds

AFM

answered 2 days ago

Sir, In Illu:14 FV of Rs.10 for opening value of Investment is not found in the question. whether we have taken it as assumption. Kindly clarify it sir.

latest answer

Ok sir Thank you

Guru aravindh s

Guru aravindh s

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Forex

AFM

answered on 24-Apr-24 10:45

Hello Sir In this question if we consider the net cash settlement in Selling put option strategy- we will have a loss of 145.2-144.9 which is 0.3 Yen/USD which will total to 0.3 million Yen. Premium receipt of 2.53 million. Now when we buy 1 million USD @ ask rate 145.05. So total payment is 145.05-2.53+0.3= 142.82. But institute has considered taking delivery. How should we decide whether to take delivery or settle in cash?

latest answer

Good point - if options are OTC, only then delivery is possible. If options are exchange traded, then only Net cash settlement. In exam suggest you take both scenarios and explain the same and give solutions as per both options with assumptions clearly stated

Suresh Avinash

Suresh Avinash

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MTP Series ii - Mutual Funds Q

AFM

answered on 22-Apr-24 18:23

Question - 5(b) of AFM MTP Series ii Please explain the logic of using NPV to compute effective yield and how the PV of cash inflows have been calculated in computing NPV

latest answer

Thank you sir, very well explained.

Vish

Vish

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43

Macaulay's Duration

AFM

answered on 22-Apr-24 15:34

Here at the end of the year , we are multiplying the cashflows with year and then discounting with PVF, got 464.65 . In the previous illustration 1, we are compounting bond period by multiplying propotionate value with no of years.. Please clarify why we are doing so

latest answer

Both are same are they not? can you please put it down ( that is both methods) on an excel sheet or a piece of paper have a look for say a 2 year bond instead of a 5 or 7 year bond?

Rahul Kumar

Rahul Kumar

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MCQ

AFM

answered on 22-Apr-24 11:15

As told in vedio, How to access mcq separately for purchased classes, because before purchasing AFM also i was able to access afm mcq section, is there any separate mcq provided for paid version

latest answer

Right now MCQs are free. We will make them paid in May So go to MCQs tab on our website and app and start accessing MCQs

R Yashwanth Kumar

R Yashwanth Kumar

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page 175 - is answer is correct

AFM

answered on 21-Apr-24 21:30

In the Part two of the question is not multiplied by r. is it correct question 14 part ii

latest answer

solved, it was my mistake

ezy pan

ezy pan

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130

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36

Forex

AFM

answered on 21-Apr-24 11:04

I didn't understood Why the rates are different??

latest answer

1.02 cents cent is 1/00th of a dollar so 1.02 cents in dollar terms = 1.02/100 = 0.0102

nazriya nasar

nazriya nasar

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