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IRR guess rates

Financial Management

answered 2 days ago

If I take different guess rates in IRR questions .i will get different rates For example in the book they took 5 and 7 percent I took 7 and 10 percent ,and my answer is slightly different . How will they correct this in the exam Do they allot marks for process or accurate answer

latest answer

Process matters You should not take numbers that are too wide apart. one can also take 1 and 50 and arrive at a rate but that would be incorrect..

Saikumar Sai

Saikumar Sai

CA Inter

★ 220

1

25

Ratio analysis

Financial Management

answered on 28-Sep-23 20:27

Solve this problem of assign 10

latest answer

I got confused at this point to find CA/CL. Now it clarified. Thank you sir🙂

Renu Madhav

Renu Madhav

CA Inter

★ 13K+

3

47

Dividend decision

Financial Management

answered on 29-Sep-23 11:02

Can u plss say y growth rate is not adjusted for new dividend ??why 32 (1.06) is not done ? ( 2ND QUESTION )

latest answer

PLs GO ahead with 32 x ( 1.06) and solve

Reetikaa R

Reetikaa R

CA Inter

★ 7K+

4

50

ratio

Financial Management

answered on 21-Sep-23 16:54

is EBIT (1-T) the same as PAT? please explain.

latest answer

No EBIT x ( 1-T) - interest x ( 1-T) = PAT

Reetikaa R

Reetikaa R

CA Inter

★ 7K+

1

41

Investment decisions

Financial Management

answered on 20-Sep-23 21:56

Please provide a detailed explanation for the (iii) point of the attached question

latest answer

After calculating adjusted npv and rate, the debt rate also be known. So now how much invt we need to invest and at what rate, that will be known for future investments.

siva chaitanya

siva chaitanya

CA Inter

★ 8K+

1

40

Ratio Analysis

Financial Management

answered on 20-Sep-23 09:04

In Turnover Ratios in numerator for which we have to take sales and which have to take COGS for calc Turnover ratios

latest answer

COGS, If they mentioned to do with sales then we should calculate with that sales

Vignesh .Y

Vignesh .Y

CA Inter

★ 440

1

40

Cost of capital

Financial Management

answered on 19-Sep-23 10:47

Why cash inflow at 0 year in calculation of npv at two discount rate is shown as negative in brackets although this is an inflow for company?

latest answer

As interest rate increases, present value decreases and vice versa. Interest rate lower means PV of outflow is higher.

Atharv Sankliya

Atharv Sankliya

CA Inter

★ 3K+

5

69

PQ 3 in ratio analysis

Financial Management

answered on 21-Sep-23 11:57

why while calc works cost cl value of finished goods is taken into account in COGS

latest answer

Here they have assumed COGS to be works cost as information is not available

Vignesh .Y

Vignesh .Y

CA Inter

★ 440

3

83

Investment decisions - Discounted payback method

Financial Management

answered on 21-Sep-23 10:45

If the question mentions the earnings before tax, should we consider it as CFAT and directly multiply with PVF or should we take that as PAT, add the depreciation back and then proceed with calculations. Kindly explain. In video 34. Illustration 15- Replacement, Earnings after tax are taken directly as CFAT because above the table the words "cash in-flows" are given, but what if without that only "earning after tax" is mentioned.

latest answer

Great! thanks for your reply sir.

Aswin Chandar

Aswin Chandar

CA Inter

★ 27K+

8

70

Investment decision

Financial Management

answered on 10-Sep-23 13:43

In respect to accept-reject decision, npv and pi decision will not change.But in case of mutually exclusive projects which technique should be choosed for selecting the project as npv and pi will be be different for the project.

latest answer

Npv

Vignesh Sudalai

Vignesh Sudalai

CA Inter

★ 5K+

1

64

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