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Illustration 30
AFM
answered on 04-Jul-26 09:23
Sir, in this question the 6-month forward premium is 1.66% and the interest rate differential is 2.91%. Since the interest rate differential is greater than the forward premium, should we conclude that the company should borrow in USD and invest in INR? Is my understanding correct? [Video Time Stamp: 03:12]
latest answer
Yes PGIDB Premium > Int Differential then borrow domestic
Vaikundaraja A
CA Final
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Gain on contract
AFM
answered on 03-Jul-26 19:05
sir, How the gain on contract is computed in this problem?
latest answer
Thank you sir
Vijay Ramesh
CA Final
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illustration 22
AFM
answered on 03-Jul-26 17:50
Dear sir, Here in this sum we are comparing the value of debenture(rs.116) and value of converted equity shares(rs.120) and say the result. But what if the investor decides to holds the debentures for 4 years and then to convert it into equity shares at rs.5 market price. in such case he may receive debenture interest for 4 years and then receive rs.100 value of equity shares. Is it logical to make permutations like this? [Video Time Stamp: 04:41]
latest answer
If u wait for maturity and market price falls to 3 then what can investor do. So the best course of action is if you get a reasonable equity share price, anytime today which is better than the market price of the bond. It is best to ahead and convert.
Balavignesh
CA Final
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144
Doubt
AFM
answered on 03-Jul-26 11:26
Why r-ke is taken in the denominator [Video Time Stamp: 06:32]
latest answer
R is ke Every wherever we have taken r- g, or ke-g
pavan kumar
CA Final
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70
Doubt
AFM
answered on 03-Jul-26 11:27
Where does the dividend D0 come from in the formula, [Video Time Stamp: 06:04]
latest answer
Formula derivation is not part of the syllabus
pavan kumar
CA Final
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75
Doubt
AFM
answered on 03-Jul-26 12:32
Why are we considering the area of the triangle? The area under growth and the time factor gives the price [Video Time Stamp: 04:42]
latest answer
Ok sir
pavan kumar
CA Final
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66
Doubt
AFM
answered on 02-Jul-26 12:36
Here, How would you arrive at the selling price of 568 [Video Time Stamp: 12:57]
latest answer
I meant 563 and not 568. It does not change the solution . It was a slip of tongue
pavan kumar
CA Final
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Depreciation
AFM
answered on 28-Jun-26 14:21
1. Sir, when figures are in nominal terms, depreciation is normal. if figures are in real terms depreciation will have impact of inflaion. can i summarise like this sir? 2. Sir, in method 1 we are inflating Operatring profit which is in nominal. this i could understand sir. But why we are again deflating at the end, which i could not understand sir. Can you please explain this. Thank you sir.
latest answer
Thank you sir
Selvakumar R
CA Final
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EAC of new macine
AFM
answered on 28-Jun-26 10:59
Sir, EAC is calculated as if mchine replaced at year 0 and used for all years. But, sir the PVAF for cost of capital at 15% will be different if machice replaced at year 1 with usefl life of 8 years from end of 1 year. Am i wrong here sir? [Video Time Stamp: 05:57]
latest answer
In first part we computed EAC for a cycle of 8 years. Now that EACis equalised cost for any year. No matter when you replace the yearly cost will be that amount any time in next 8 years. Question of Different PVAF will not arise because you are looking at common cost called EAC from that time onwards
Selvakumar R
CA Final
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134
File Attached
AFM
answered on 28-Jun-26 14:22
Can we solve like this sir? [Video Time Stamp: 11:54]
latest answer
Thank you sir
Selvakumar R
CA Final
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