NP for kr - IP or MP

answered 2 hrs ago

Hii could someone clarify my following doubt regarding FM COC? In the illustration 13 of ICAI SM, the net proceeds for kr is Market price whereas in the practical sum no 5 of ICAI study material, net proceeds for kr is Issue price. Could anyone tell me when should MP and IP be used for the purpose of kr computation?

latest answer

In Illustration 13 the sum is regarding making a financing decision to determine the cost of the sources of finance for the decision has to be determined. To fund a project, they have to issue new shares. This comes under exception of Kr is not equal to Ke when new issue with floatation cost is made. In practical sum the question is regarding computation of cost of finance there is not going to be any issue. So, they considered that IP. Please check with some external sources based on my inferences from the sum solved I found this. When issue is going to be made, MP. When no issue is made just to determine the cost consider IP,

Padmanaban Munusamy

CA Inter

★ 0

1

15

Contribution and pv ratio

answered 14 hrs ago

Can it be solved in easy method than module

latest answer

Sorry previous photo was attached by mistake correct question is below

AKSHAT MITTAL

CA Inter

★ 4K+

1

20

Dividend

asked 18 hrs ago

While computing value of firm why it is multiplied with mps and no. Of shares.if applying the given formula in book the answer is different

latest answer

No answers yet!!

Ramya Telikicherla

CA Inter

★ 6K+

0

16

Cost of capital

answered 1 day ago

Hi guys, I have a doubt in below mentioned problem. Can anyone please clarify my doubt frnds In the calculation of cost pref and Deb how they find the discount rates for IRR method? And what's the need of the step at first arrow?

latest answer

Oh okay thank you so much

Likhitha Sivani

CA Inter

★ 14K+

4

40

Wcm

answered 1 day ago

In this pq 14 why finished good is valued on basis of cos but not on cop

latest answer

Usually the cos will be taken for computing FG Stock usually because it comprises of all the cost that we related to bring that FG. In the case of WIP we will consider COP .

Ramya Telikicherla

CA Inter

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1

20

Benefit of Factoring - Opportunity Benefit of Receivables Not Considered?

asked on 14-Apr-24 18:25

Hi sir, hope you're well For credit period and discount policy, we see the opportunity benefit of the debtors being realized quicker, as a benefit. Why don't we take this benefit into account for factoring? Since a substantial part of debtors are essentially being realized at once, which is basically a lowering of 'credit period'. Thanks

latest answer

No answers yet!!

Devaprasad Jothimani

CA Inter

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0

25

Doubt in dec 21 question number 4 part 2

answered on 12-Apr-24 20:39

I am unable to understand what are they trying to ask by the world sensitivity could anyone explain me the question and steps to answer it

latest answer

Thank you sir

SREEABITHA SENTHILKUMAR

CA Inter

★ 1K+

3

41

Missing question

answered on 12-Apr-24 02:07

37th question missing in Investment decisions chapter

latest answer

Thank you for the information. We shall check and take the necessary step to add if required

leela sowjanya

CA Inter

★ 10

1

44

Doubt regarding IRR concept

answered on 12-Apr-24 11:45

Aditya sir, in u r classes u done all IRR problems w.r.t time line, can we done with IRR formula also in exam, becz same answer is coming via time line concept and IRR formula..?? Plz reply me sir

latest answer

Thank you sir

leela sowjanya

CA Inter

★ 10

2

43

Approach in working capital requirements

answered on 12-Apr-24 01:46

If question provide you with depreciation is it necessary to present solution as per cash cost approach and take debtors at cost . Or can take debtors at sales

latest answer

the total cost approach is in line with cash cost only.. so whenever depreciation is mentioned it has to be removed to compute the total cost

AKSHAT MITTAL

CA Inter

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3

46