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Critical Line Theory

AFM

answered on 25-Apr-25 15:57

Where is it established in the question that the proportion of Stock C is constant or that there is a direct relationship between the proportions of Stocks A & B? Also, assuming the proportion of Stock C is constant, couldn't the proportions of B & C be computed in a simpler manner? The question says 4000 out of 8000 is invested in A, which makes its proportion 50%. We know that the proportion of C is 30%. Then, proportion of B = 100 - 50 - 30 = 20%. What am I missing?

latest answer

Yes. IF A goes up B will go up and C will come down by similar proportion That relationship is liner. When we have solved it in class take taking 2 simultaneous equations it obviously means that the relationship is linear

Ruthvik Reddy Adala

Ruthvik Reddy Adala

CA Final

5K+

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355

Illustration 18

Financial Management

answered on 25-Apr-25 15:19

In shareholders point of view If they invested else they get 10% But in co. They get only 6.97% on RE which is loss to the shareholders right? In dividend decisions chapter (return onRE)r>ke investment made Here , (which we know it is cost on RE but for shareholders it's return)kre <= ke how's it possible Please sir can you explain it?

latest answer

If they invest also they get only gross at 10% - net is same they get 30% less due to tax and of the amount they invest only 97% goes for projects, 3% is floatation cost If they invested elsewhere too, they will have these issues of floatation cost and taxation That is why we are computing Kre as opportunity cst of investing elsewhere

anju B

anju B

CA Inter

21K+

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252

Ifsc

Corporate & Other Laws

answered on 14-May-25 12:23

Ifsc is always an unlisted co or for this section

latest answer

Please share the question

Sushmita Chowdhury

Sushmita Chowdhury

CA Inter

2K+

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318

Buyback

Corporate & Other Laws

answered on 25-Apr-25 13:40

Debt equity ratio after buyback 2:1 means if equity is 2lac debt can be up to 4lac ?

latest answer

Thank you

Sushmita Chowdhury

Sushmita Chowdhury

CA Inter

2K+

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311

TCS

Direct Taxation

answered on 27-Apr-25 11:27

Sir , If Mr.A remitted 8 lakhs to USA for his friend educational purpose by taking loan from SBI in India , is he eligible for concessional rate of TCS (0.5% above 7L) ?

latest answer

Thank you Sir

Prethivi Rajan

Prethivi Rajan

CA Final

9K+

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323

Advance Tax

Direct Taxation

answered on 28-Apr-25 16:35

Sir what if the casual has come between 15th and 31st March but payment actually received after 31st March. For Example, if someone wins a lottery of Rs 1,00,00,000/- on 20th March but he only received that payment on say 5th May. Tha what will happen to Advance Tax payment?

latest answer

Generally casual incomes are recognized on cash system only. Hypothetically if you are following accrual then you have to pay advance tax. But practically it is not possible.

K K Subba

K K Subba

CA Inter

3K+

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340

Sh cap & deb

Corporate & Other Laws

answered on 26-Apr-25 15:49

3rd point NBFC not registered is exception mean it will create DRR at what % ?

latest answer

Unlisted NBFC - no need to create DRR

Sushmita Chowdhury

Sushmita Chowdhury

CA Inter

2K+

2

204

Esop

Corporate & Other Laws

answered on 26-Apr-25 15:46

Point 4 ESOP specifically given to employees then how can other person excercise on behalf Not excercised directly by employees means which person can excercise their vote

latest answer

Please quote section/provision text here for better understanding of your question

Sushmita Chowdhury

Sushmita Chowdhury

CA Inter

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218

Bonus share

Corporate & Other Laws

answered on 26-Apr-25 15:27

For issuing bonus shares, it shall be authorized by AOA Why is it so when already Special resolution is taken for issuing of bonus share ?

latest answer

It's requirement by the Act. Preliminary authority should come from AOA. But that doesn't mean the company can issue bonus share any day any time. Ofcourse, they will have to hold a meeting and ask members about it. Issuing bonus shares affects the voting rights of existing members so their consent is needed.

Sushmita Chowdhury

Sushmita Chowdhury

CA Inter

2K+

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192

Doubt - If there was a risk free rate, should we use the interest free rate to calculate the future value of letter of commission?

AFM

answered on 24-Apr-25 16:55

If there was a risk free rate, should we use the risk free rate to calculate the future value of letter of commission?

latest answer

No. PV & FV in all cases of normal importers and exporters' transactions is always computed at their borrowing costs RF is used only for Pricing options or valuing forwards

Manu Jacob

Manu Jacob

CA Final

6K+

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