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working capital ,Mosaic Ltd sum

Financial Management

answered on 24-Sep-20 06:21

In the question it is given that total cost is 75 percentage of sales and in that 75 % , 80% is vc and 20% is fc. So total cost is 1125000 vc is 900000, fc is 225000 here when we cross check total cost to sales percentage it is 75% ok agreed. But when sales increased to 1750000 vc becomes 1035000 ( ie 80 % of 75 % total cost ). And fc will be same 225000 if we cross check total cost to sales % then percentage is not 75 % it is 72 % why does it occur since we have calculated 1035000 by taking total cost percentage as 75 %

latest answer

Variable cost will remain constant at per unit and % basis. For e.g. Sales are 100 and variable costs are 60. If sales are 200, variable costs will be 120.

Sai E

Sai E

CA Foundation

36K+

6

209

Is this question applicable for CA Final or Inter?

Financial Management

answered on 23-Sep-20 11:54

This question from another institute's study material a friend sent actually appeared in CA Final Strategic Financial Management MTP Oct 16. Is this now in CA Intermediate? If so, kindly help me solve sub divisions b,c,d. Thank you

latest answer

Annual cash flow is given. Using cost of capital sensitivity you can computed cost of capital and then NPV>

Suraj Narayanan

Suraj Narayanan

CA Final

7K+

4

224

Capital structure

Financial Management

answered on 14-Sep-20 01:52

How to do this problem

latest answer

Wealth ratio = (dividend + closing market price)/opening market price. Mean should be taken for wealth ratio and then it should be subtracted by 1 to get cost of equity.

Kanaga Mani

Kanaga Mani

CA Inter

3K+

4

378

Effective Rate of Interest

Financial Management

answered on 27-Aug-20 17:31

Can effective rate of interest formula be also applied in case of series of cash flow (regular/irregular) or it can be only used in case of single cash flow only?

latest answer

Ok

Deepak Gupta

Deepak Gupta

CA Inter

1K+

5

164

Modigliani and miller approach

Financial Management

answered on 15-Aug-20 16:59

Vu =EBIT(1-t)/ko When there is no debt and interest in unlivered structure why we are reducing tax component ?

latest answer

Okay

Rahul H

Rahul H

CA Final

0

2

259

Under capitalisation

Financial Management

answered on 08-Aug-20 17:23

How does under capitalisation increases the rate of dividend in comparison to similar situated companies in the industry?

latest answer

Thank you ma'am

Swathi Krishna

Swathi Krishna

CA Final

8K+

2

211

Working capital management

Financial Management

answered on 06-Aug-20 22:44

In institute's textbook,practical problems question no2 (M.A.Ltd) The amount of production expected is given, does that mean production for the current year is given or production adjusting opening stock is given ?

latest answer

Thank you ma'am

Swathi Krishna

Swathi Krishna

CA Final

8K+

6

242

Working capital

Financial Management

answered on 04-Aug-20 21:27

In case of new company, for estimating the value raw material is already for work in progress calculations, then why is the raw material consumption for work in progress plzz again. Partical problem question 1

latest answer

Thank you sir

Swathi Krishna

Swathi Krishna

CA Final

8K+

9

209

Financial control

Financial Management

answered on 30-Jul-20 10:08

Is financial control not an element of financial management?

latest answer

Ok sir ,thanku mam...

Divya Naik

Divya Naik

CA Inter

7K+

4

221

Receivables management

Financial Management

answered on 29-Jul-20 23:18

The format for this calculation given in text is different from the format given in the lectures Which should I follow for exam ?

latest answer

Thax

Swathi Krishna

Swathi Krishna

CA Final

8K+

4

211

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