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Equity Capitalization rate

Financial Management

answered on 05-Jan-25 16:38

What is Equity Capitalization rate ? and What it indicates ?

latest answer

It is rate at which profits will be capitalised perpetually If CFAT is 100 & Cap rate ( discount rate) is 10% them value of equity is 100/(10%) = 1000

Harish Kumar

Harish Kumar

CA Inter

17K+

1

907

Applicability

Indirect Taxation

answered on 06-Jan-25 19:23

Is it applicable for May 25 with ammendments

latest answer

Yes it is.

Rupsha Das Sharma

Rupsha Das Sharma

CA Inter

0

1

722

IRR

Financial Reporting

answered on 05-Jan-25 10:37

When IRR is calculated manually, there are point differences in value when compared to actual IRR calculated in excel. (Got 7.4614 instead of 7.45) Because of this, differences arose in final cashflows. (got 39,99,470 instead of 40,00,000). Are these minor differences acceptable.

latest answer

Yes

SANJITHA

CA Final

505

1

199

IDP, Financial Break-even Point

Financial Management

answered on 05-Jan-25 10:38

Sir, you said the plan which has lesser financial cost will always have higher EPS when compared to plan with higher financial cost and there will be NO IDP between the plans. But In Illustration - 16 the Option- 1 has F.BEP = 2.4L, Option - 2 has F.BEP = 4.8L and There is EBIT (IDP) = 9.6L Actually there should be NO IDP ?

latest answer

But in Ill 16 both have debt right. Faculty said Full Equity vs Equity + Debt IDP cannot be arrived at But it can be arrived at when diff debt ratios, & Pref shares are involved

Harish Kumar

Harish Kumar

CA Inter

17K+

1

217

Computation of cash available

Financial Management

answered on 05-Jan-25 10:31

In the calculation of net profit for year 3 in this sum, we have deducted the raw material purchased. While calculating cash available to service the loan, we are using the net profit only but we are deducting the increase in stock again. Why are we deducting it again from cash balance when the raw material cost was already deducted in net profit?

latest answer

Cash available

Venkatesh

Venkatesh

CA Final

0

1

1K+

ROI EQUATION

Financial Management

answered on 05-Jan-25 10:21

Is it EBIT/CAPITAL EMPLOYED OR PAT/OWNERS FUND

latest answer

PAT / Owners funds is ROE EBIT / CE = Pre Tax ROI

Akhil Ani

Akhil Ani

CA Final

5K+

1

910

4:20to 4:40

Direct Taxation

answered on 06-Jan-25 19:15

Sir u first says 2L/ 30k not for together is separately for each co -owner Then u says this 2L/30k is for 2 or more self occupied property combined together I confused 😕 sir

latest answer

In case of co ownership the limit of 30K/ 2L is separate for each co owner. Further, with respect to self occupied properties, limit is 2L/ 30K for all self occupied properties together.

R G

R G

CA Inter

9K+

1

1K+

4:30 to 4:40

Direct Taxation

answered on 06-Jan-25 19:16

2 or more self occupied combined together means total self occupied 4 hoga ya 2 hoga sir

latest answer

2 or more means it can be two or more than 2. All self occupied properties put together, the limit will apply.

R G

R G

CA Inter

9K+

1

1K+

Converstion of company

Corporate & Other Laws

answered on 05-Jan-25 10:44

Is company require central government approval to convert either public to private or private to public?in both cases

latest answer

As per sec 13, Central government approval is not required to convert Private ltd co to Public ltd company, however Central government is required for conversion of Public Ltd co to Private ltd company

meghana venkatesh

meghana venkatesh

CA Inter

190

1

1K+

Material not received

Direct Taxation

answered on 06-Jan-25 19:16

Where can I find material for sums.?

latest answer

Physical copy of the book.

Sowmiya Prabu

Sowmiya Prabu

CA Inter

670

1

210