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Why cant we take 0.0333 as 0.03?

AFM

answered on 07-Jan-25 18:33

Why cant we take 0.0333 as 0.03? So that we can directly take e^0.03=1.03045? Is it wrong to do this way?

latest answer

It is not wrong but expectation of accuracy by evalutors Most evaluators will not give u marks if u do that

Manu Jacob

Manu Jacob

CA Final

6K+

1

197

Futures - Arbitrage

AFM

answered on 07-Jan-25 21:44

In ILL 18, "50% of the stock including INDEX shall pay dividend in next 6 months." . What does it mean? Is 50% referring to time i.e 6 months or the portion of Index that pays out dividend? If it refers to 6 months, then the query is resolved. But if it represents the portion of Index, Dividend is calculated for per annum and not for 6 months for Fair value and Gain from arbitrage

latest answer

Thankyou sir

Durai Murugan

Durai Murugan

CA Final

470

4

226

CRR Sources

Corporate & Other Laws

answered on 07-Jan-25 21:00

Only the Free Reserves (excl security premium) can be used for transfer to CRR right?

latest answer

..

Vishnu Muraleedharan

Vishnu Muraleedharan

CA Final

32K+

3

198

Registration

Indirect Taxation

answered on 08-Jan-25 16:38

Person supply goods in UP state And want to supply goods via eco in TN state Will be exempt from registration?

latest answer

If they are making inter state supplies then registration is mandatory.

Sushmita Chowdhury

Sushmita Chowdhury

CA Inter

2K+

3

338

Articleship leave

Others

answered on 07-Jan-25 18:58

I am doing Articleship under new scheme , 1 year going to be completed . During 1st year have taken 1 day leave , whether can I claim 11 days unexpired leave in 2nd year of Articleship ?!

latest answer

Thank you sir

Sajeetha R

Sajeetha R

CA Final

46K+

2

329

Shouldn't the Rf rate be monthly rate?

AFM

answered on 07-Jan-25 13:33

In the solution we have taken annual Rf rate and monthly dividend rate. Should it not be monthly rate for Rf. If not please explain as to why we have taken annual rate for Rf.

latest answer

Dividend rate is 3% PA We are not taking 4 months dividend rate. we are computing average dividend rate over 4 months Even that number is a pa number RF rate is same at 8% pa for every month We finally adjust for 4 months by multiplying with 4/12

Manu Jacob

Manu Jacob

CA Final

6K+

1

189

Futures

AFM

answered on 07-Jan-25 09:42

Ram buys 10,000 shares of X Ltd. at a price of ₹ 22 per share whose beta value is 1.5 and sells 5,000 shares of A Ltd. at a price of ₹ 40 per share having a beta value of 2. He obtains a complete hedge by Nifty futures at ₹ 1,000 each. He closes out his position at the closing price of the next day when the share of X Ltd. dropped by 2%, share of A Ltd. appreciated by 3% and Nifty futures dropped by 1.5%. What is the overall profit/loss to Ram? In this Qn, there is no information about his position on NIFTY futures, Can we solve it assuming he took short position as Nifty futures dropped by 1.5% unlike the class material where we took long position resulting in loss?

latest answer

Yes

Durai Murugan

Durai Murugan

CA Final

470

3

917

Rounding off issues in the pdf as well as the class recording.

Financial Reporting

answered on 07-Jan-25 12:24

Hi, Love the classes, I had finished Borrowing costs a while ago, I came back to check in during revision and, in this problem the capitalization rate is said to be 17%, when it is actually 16.5%. The same error (I do not know if it is an error or not) is carried into the pdf as well. Damn near pulled my hair out worrying why I couldn't get the same numbers as on the board. Can someone confirm the same or let me know if I am being stupid. I do not know what to do with the information, if it might help someone else save a few minutes or not.

latest answer

Cheers, Love the classes. <3

Siddique Mohammed

Siddique Mohammed

CA Final

0

2

201

Illustration 6 Recoverable Amount

Financial Reporting

answered on 08-Jan-25 17:44

Sir, why have we not considered the Recoverable Amount of Rs. 500 while calculating impairment loss..?

latest answer

Thats as on close of previous year.

K Vamshi

K Vamshi

CA Final

14K+

1

735

Business combination - Ill 20

Financial Reporting

answered on 08-Jan-25 17:34

Here in question, they have mentioned that H ltd will issue 1 share for every 2 shares held in s ltd. But while computing no of shares to be issued, we have considered only the 45% stake and not the 15% existing stake, why so? Ideally we should issue basis the 60% stake right?

latest answer

15% is already held. So we are acquiring only 45%

Dhanushree Shanmugam

Dhanushree Shanmugam

CA Final

3K+

2

582