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AFM
answered on 09-Oct-26 18:05
Why is 12.5 M considered a strike price? [Video Time Stamp: 07:57]
latest answer
You invest 12.5 and get 16.7 So payment is 12.5 In call option strike is what is paid gain is diff between spot on maturity and strike Spot on maturity is pv of future cf
pavan kumar
CA Final
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1
21
Direct or Indirect quote
AFM
answered on 09-Oct-26 16:58
In the given question it is an Indian firm and generally 1 USD = INR is direct quote in the given scenario as explained it is 1 INR = JPY why it is not treated as indirect quote ? [Video Time Stamp: 07:18]
latest answer
Direct
Bharathkumar Sivakumar
CA Final
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1
25
dividend
AFM
answered on 09-Oct-26 16:53
we have take do of the year where growth rate is the highest right ??? [Video Time Stamp: 04:32]
latest answer
Yes we did that only
Hemanth kumar Kapuluru
CA Final
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20
while calculating ke
AFM
answered on 09-Oct-26 18:14
while calculating ke we are considering D1 which includes growth if growth is included then price of the share is also some what changes right then we have to consider 21.116 instead of 21.12 what is the reason or assumption behind taking 21.2 by u sir [Video Time Stamp: 23:15]
latest answer
Market is not yet aware of the new project as board is still considering If were market were already aware, share price would have gone up Because market is not aware prices reflects only CF excluding the project hence we consider P0 as 21.2 ( after removing dividend)
Hemanth kumar Kapuluru
CA Final
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20
NPV
AFM
answered on 09-Oct-26 07:34
What is the reason of adding NPV to the while calculating the share price in both right issue and fresh issue ??? [Video Time Stamp: 23:15]
latest answer
Nov addition
Hemanth kumar Kapuluru
CA Final
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24
Convenience yield
AFM
answered on 09-Oct-26 07:14
Sir, could you explain why convenience yield is not considered in stock futures? Even in stock futures, if someone wants to buy the stock at a future date, they can enter into a futures contract. Similarly, if someone needs the stock immediately, they can purchase it in the spot market. In the case of commodity futures also, if someone needs the commodity immediately, they can purchase it in the spot market. So why is convenience yield considered only in commodity futures and not in stock futures? Is there any mistake in my understanding, sir?
latest answer
Convenience yield
Pavan Naidu ca
CA Final
★ 320
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23
Doubt
AFM
answered on 09-Oct-26 18:10
How FCFF for 2015 is 254.76 in the given question? [Video Time Stamp: 19:17]
latest answer
It is FCFE, printing mistake as FCFF FCFE 2015 = FCFE 2014 x ( 1+g)
pavan kumar
CA Final
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31
Doubt
AFM
answered on 08-Oct-26 19:43
Sir here we can assume growth rate as PAT growth rate also [Video Time Stamp: 08:14]
latest answer
Yes
pavan kumar
CA Final
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3
17
O - Illustration #31
AFM
answered on 08-Oct-26 17:43
Sir, if we hold the futures contract until maturity, it will ultimately be settled based on the spot price prevailing on the maturity date, right? Accordingly, the effective realised price per kg would be ₹57. Is this understanding incorrect, sir? As I understood from this sum, the convergence principle has failed, In that case, can the futures contract be bought back before maturity? [Video Time Stamp: 14:35]
latest answer
Futures
Pavan Naidu ca
CA Final
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23
Nominal cash flow
AFM
answered on 07-Oct-26 20:03
Sir, while calculating nominal cash flows, whether inflation adjustment should me made to depreciation. Because in some problems inflation adj. is made to depreciation and in some they didn't. For eg. In illustration 1 from ICAI, they did the inflation adj. for dep. whereas in Illustration 2 they didn't. Can you explain the reason sir
latest answer
Inflation does not affect depreciation as it is computed on historical cost basis ICAI I’ll 1 and 2 are there to show that impact. Best way to understand this is go to last two questions where I discuss this clearly in a question they asked in 2024/2025
Nitin Raj
CA Final
★ 270
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19