Forums
Utility in SFM
AFM
answered on 04-Nov-23 10:20
Hi sir, in ch 4 of AFM i.e capital budgeting.. specifically in illustration 30, what utility means in general. whether it is something like certain cashflows?
latest answer
In economics, utility is a term used to determine the worth or value of a good or service. More specifically, utility is the total satisfaction or benefit derived from consuming a good or service
Dhanushree Shanmugam
CA Final
★ 3K+
1
424
Portfolio Management
AFM
answered on 22-Oct-23 05:54
Can you please show how intrinsic value is calculated in this sum.
latest answer
Rf = t bill rate Rm is given Beta = covariance / market variance Ke = CAPM Use 2 stage dividend disc model for finding out P0
Harsh Mittal
CA Final
★ 1K+
1
488
Valuation of debentures and bonds- Q.no.34
AFM
answered on 20-Oct-23 11:18
Sir, why is tax deducted from redemption premia while calculating cash cost ? Do we need to deduct tax on cost?
latest answer
Okay sir.
Srikanth Srimath Tirumala Peddinti
CA Final
★ 320
2
484
Security valuation Q33
AFM
answered on 30-Sep-23 11:03
Sir Why is in tax saving (3-2.5)/10 is taken when issue cost is incurred only once
latest answer
Okk Understood sir
A Sivani
CA Final
★ 11K+
2
466
Derivatives
AFM
answered on 17-Sep-23 18:14
Can anyone explain me what is short and long term used while studying future derivatives
latest answer
short mean sell When you are short of some thing it means you dont have it long mean the opposite - when you buy something you are said to be long on something
Sairam Reddy
CA Final
★ 10K+
1
486
Portfolio Management- Illustration 26
AFM
answered on 14-Sep-23 07:41
Hello Sir, In this problem, we have assumed GOI bonds return as risk free rate however the beta value is given in the question as 0.01 which is not zero as of a risk free asset. Also as you mentioned, ICAI answer is confusing as they have computed Market Portfolio using the securities given in the question. How do we approach these types of questions in the exam?
latest answer
Unlikely that you will get such questions in exam going by recent trend. Even if they come - take most reasonable assumption and move forward.
Suresh Avinash
CA Final
★ 3K+
1
567
Security valuation Duration
AFM
answered on 01-Sep-23 21:21
Sir I didn't understand the short cut formula for calculating Duration of bonds
latest answer
Ok sir
A Sivani
CA Final
★ 11K+
2
513
Query with teacher day spl course
AFM
answered on 01-Sep-23 04:52
If we purchase Teacher's day spl ( without books) - do we get pdf of books or not ?
latest answer
Pdf - yes
Enuguru Sai Nithin
CA Final
★ 78K+
1
542
Corporate valuation
AFM
answered on 29-Aug-23 17:31
Sir, in this question we could find the enterprise value = value of the firm using EV/EBITDA approach and also through cash flow based model. Institute has found it using two models. However wrote the value of the firm using the cash flow model. Why? If like this comes in exam what should we do?
latest answer
Okay sir thanks
Swathi Krishna
CA Final
★ 8K+
2
573
Corporate Valuation
AFM
answered on 29-Aug-23 07:53
Sir, here why are we discounting the cash flow with 13% even though the cost of capital is 12% from the 5th year ?
latest answer
Okay sir Thank you
Swathi Krishna
CA Final
★ 8K+
2
476