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Financial Management

answered on 08-Jun-25 10:46

Tell exactly what do we prefer for exam point Whether post or pre tax for return on (capital employed, total assets, equity) And what the formulae EBIT/ EBIT(1-TAX)/ PAT?

latest answer

For capital employed as denominator EBIT pre and post tax in numerator For Equity as denominator, PAT which anyway is post tax only in numerator

anju B

anju B

CA Inter

21K+

3

12

Amount fetch of old will deductable while calculating depreciation of new machine

Financial Management

answered on 01-Jun-25 09:06

10.36 would depreciation was on new machine - amount fetch of old too sir?

latest answer

Dep is on Net Cost of Acquisition

anju B

anju B

CA Inter

21K+

1

22

Doubt

Financial Management

answered on 31-May-25 20:55

For Actual maintenance cost and operating cost Tax implication?

latest answer

Both are tax allowable expenses

anju B

anju B

CA Inter

21K+

1

27

Doubt

Financial Management

answered on 31-May-25 20:55

For Actual maintenance and operating cost Tax implication?

latest answer

Both are tax allowable expenses

anju B

anju B

CA Inter

21K+

1

19

Will Tax implication relevant for TCI &TCO

Financial Management

answered on 31-May-25 20:55

Is there tax implication on either terminal cash inflow or terminal cash outflow Actually for npv= pv of cfat(after tax implication) + pv of tci - pv of intial Cash outflow - pv of tco Here, only cfat part tax implication is considered Then how we considered tci &tco before tax implication

latest answer

Because it is a expense you need to incur If machine has salvage we value we consider CG tax impact on net number

anju B

anju B

CA Inter

21K+

1

20

TCI

Financial Management

answered on 31-May-25 20:53

@32.06 cost of disposal which is terminal cash inflow is it should be write on after tax implication right? i.e, cfat + tci on that pv

latest answer

All the other items are also before tax and so is this item Tax is accounted for separately in subsequent steps

anju B

anju B

CA Inter

21K+

1

17

Capital budgeting

Financial Management

answered on 31-May-25 20:50

While calculating cash flow jab non cash depression ko add back krna hota h PAT m se toh less hi kyu krte hain ?

latest answer

Because we compute tax on PBT that is arrived at after deducting depreciation Depreciation expense gives us tax benefit even though it is a noncash item it is added back to PAT because it is a noncash item and we are trying to arrive at CFAT

srishti agrawal

srishti agrawal

CA Inter

130

1

21

Order quantity

Financial Management

answered on 30-May-25 15:11

@3.12 why we again made 30000÷2 Already order quantity 60000÷ 2orders =30000 order quantity

latest answer

Because when you order 30K units at beginning you have 30K units and end you have 0 units as they all are consumed - so average quantity of the period is 30K / 2 =15K units

anju B

anju B

CA Inter

21K+

1

25

Not understand the Logic

Financial Management

answered on 30-May-25 06:14

Really how many times I refer this problem I can't understand the logic sir ... upto value of the firm okay upon that I'm not sure even next problem also stuck on that part .. As per theory concept My understanding is for example 2 firms 1) unlevered: 5lakhs value 2)levered : 8 lakhs value To equalise two firms 1,50,000value {difference÷2} of eq share holders shifted to unlevered Kindly request you If it possible can you please explain it in telugu language sir

latest answer

We are not trying to equalise We are trying to evaluate if same sum of money is invested in 2 companies where do we make more money. We shift our money there

anju B

anju B

CA Inter

21K+

1

25

Borrows from unlevered (Which is asset to unlevered firm)

Financial Management

answered on 30-May-25 06:09

If mr.x borrows 8696 ₹ from unlevered firm For unlevered view(perspective) it gives loan which is asset and interest on that is also earned by unlevered co. Which we have to be added that interest received in unlevered firm right? i.e, Earnings 20000×10%. = 2000 + Interest received (that mr.x borrow from us) 8696×7%. =609 ———————————————————————– Net earnings. 2609

latest answer

Borrowing is from mkt not unlevered firm

anju B

anju B

CA Inter

21K+

3

42

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