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Cost of capital

Financial Management

answered on 02-Jul-24 17:54

Why in cost of redeemable debt formula,average is taken for redemption value and net proceeds

latest answer

It represents the average investment over the life of the debenture. Why average? It simplifies the estimation of the average amount financed by the debt over its life. It assumes that funds are used evenly throughout the period until redemption (though not strictly true).

N.Gokulnath

N.Gokulnath

CA Inter

850

1

64

Current ratio

Financial Management

answered on 24-Jun-24 08:53

Sir, while solving problem no.12 (i.e M Ltd) You're taking current ratio is 2.4 times But in the question current Ratio is 2:4 Is that print mistake sir

latest answer

It 2.4. We had updated that. Please refer to the pdf uploaded in the free resources in the app or website.

Satheesh Kumar

Satheesh Kumar

CA Inter

9K+

1

66

Scope and objectives of fm

Financial Management

answered on 21-Jun-24 07:25

How is 'inflation' a microeconomic variable?? (Answer given in icai mat is D)

latest answer

Answer right question wrong Micro & macro variable should be the question

Monika T

Monika T

CA Inter

7K+

3

74

Leverage

Financial Management

answered on 15-Jun-24 15:44

High rate of operating leverage or low rate of operating leverage which one is better? And explain how it is

latest answer

Here is the response from a real Life perspective

atchaya s

atchaya s

CA Inter

0

1

68

Diluted EPS

Financial Management

answered on 14-Jun-24 19:35

How to find diluted EPS when the company has issued convertible bonds

latest answer

The answer will be 2.35 if net Profit of ₹5000000 if it is a after tax number If net profit of ₹50 lakhs is a before tax number then the exact answer for diluted Eps will be 1.77

NANDHINI U S

NANDHINI U S

CA Inter

33K+

4

85

Ratio Analysis

Financial Management

answered on 14-Jun-24 00:50

Couldn't understand the working of Capital calculation. Please explain

latest answer

It's alright sir, thank you so much for your efforts towards solving doubts :)

Mehak K

Mehak K

CA Inter

3K+

8

96

Retained earnings

Financial Management

answered on 27-May-24 10:10

Why retained earnings considered as 80%

latest answer

The amount of 1.6 lacs is Equity - Paid up cap + Reserves & surplus

Shivashankar Jawai

Shivashankar Jawai

CA Inter

650

1

71

Dividend decisions

Financial Management

answered on 22-May-24 14:43

Book back sum number 5 At the end of 5 th year what the power number given to 1+ke is that 5 or 4 Because in ICAI material they mentioned as 5 But in Nov2021 suggested answer it mentioned as 1+ke power 4??? In suggested answer the question in 1(c) page number 2

latest answer

Okk thank you sir

Abi KVA

Abi KVA

CA Inter

2K+

2

117

Ratio analysis

Financial Management

answered on 22-May-24 11:08

Book back sum number 3 Why no closing stock shown in profit and loss account but included in current assets.?

latest answer

Because Direct material consumed already accounts for opening and closing stocks

Abi KVA

Abi KVA

CA Inter

2K+

1

83

Dividend

Financial Management

answered on 16-May-24 16:20

Can I assume ₹50 as EX dividend price .

latest answer

Rs. 50 is the cum dividend price. 50 - 10 (div paid) = Rs. 40 is the ex dividend price

kowselyaa G

kowselyaa G

CA Inter

2K+

1

83

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