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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

Vaikundaraja A

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73

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

Vijay Ramesh

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113

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

Balavignesh

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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

pavan kumar

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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

pavan kumar

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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

pavan kumar

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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

pavan kumar

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81

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

Selvakumar R

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88

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

Selvakumar R

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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

Selvakumar R

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125