Forums
Equity Risk Premium vs Market Risk Premium and cosideration of beta accordingly
AFM
answered on 17-Oct-24 21:06
Sir I understand that when beta is not equal to 1, then Equity Premium = Beta (Rm - Rf) and Market Premium = Rm - Rf since in the question its given Equity Premium 6% and not market premium Rx = Rf + Equity Premium Rx = 4% + 6% = 10%, so Rx = ke we need to consider 10% if in the question if it was given "Market premium" = (Rm-Rf)= 6% then we need to do 4% + 1.2 * 6% = 11.2 % Am i right with my understanding ?
latest answer
Question is mkt risk premium. I read it out correctly as risk premium By mistake got typed on screen as eq risk premium Will get it corrected Thanks for highlighting Your understanding is correct
Hemachandra D
CA Final
★ 9K+
1
643
Illustration 12
Financial Reporting
answered on 18-Oct-24 13:04
In short term , According to my calculation for 1000 employees we could carry forward 5000PL and 2000 SL na? Management estimates are 5 PL and 2SL and accordingly it will be calculated. How could we create for all 1000*10 and 1000*5 as management estimate is what we see
latest answer
Okk sir !! Thank you !!
Hrishikesh Pradhan
CA Final
★ 18K+
2
455
Ind as 16
Financial Reporting
answered on 18-Oct-24 12:22
Here major overhaul cost is not taken while calculating total cost to be capitalised but they have taken depreciation for overhaul cost why??
latest answer
Okay sir thankyou
varagani Kaivalya
CA Final
★ 2K+
4
414
Ledger
Accountancy
answered on 18-Oct-24 08:14
Hello sir / madam Shall we have to create this ledger horizontally or vertically in exams ?
latest answer
It can do horizontally
Nagachaitanya Nomula
CA Final
★ 8K+
1
265
is it P0 or P1
AFM
answered on 17-Oct-24 17:59
Sir in the question they have asked whats the market price "at the end of the year" I inderstand current market price means P0, if they are asking for end of the year isn't it they are asking P1 or how to intrepret this at the end of the year, beacause in all other questions it was mentioned to calulate current market price
latest answer
P0 or p 1
Hemachandra D
CA Final
★ 9K+
1
997
Emplyee benefit plan
Financial Reporting
answered on 18-Oct-24 12:46
Sir in the question we have 1% of every year salary But in solution we have taken last year salary multiple with 1% again multiple with 5years why ???
latest answer
Total amount paid in year 5 will be 1% of final salary multiplied by number of years of service. The split done year wise is to explain how much of expense is to be recognised each year. Can you tell me which point of time in the video did you have this doubt?
Suman Hs
CA Final
★ 2K+
1
196
From practical aspect
AFM
answered on 17-Oct-24 17:56
sir will these walters and gordon's model used in real life ?, because in this question we got P0 = Rs 233 using gordon's formula, andP0= Rs 77.77 using walters formula, big difference of the price using different approaches, so a doubt
latest answer
Practically Walter or Gordon
Hemachandra D
CA Final
★ 9K+
1
447
FCMITD date
Accountancy
answered on 18-Oct-24 16:12
Sir, what is the criteria under which the last date to write off FCMITD is considered in question 2 ?
latest answer
ok sir. Thank you so much sir.
Poojasree Shakthiraam
CA Inter
★ 25
2
264
Illustration 4 part 2
Costing
answered on 29-Oct-24 09:47
Sir, in the price stores ledger card's quarter 2 purchase section the rate is show 2 in the book but you told that is to be 3 so is rate 3 correct?
latest answer
Rate 3 is correct. We will update the notes.Thanks for highliting.
DEBJANI Dutta
CA Inter
★ 0
1
386
If I attempt all six questions, only the best five will be considered. Am I right?
Exams
answered on 17-Oct-24 13:53
If I attempt all six questions, only the best five will be considered. Am I right?
latest answer
Yes
kathiresh V
CA Final
★ 15K+
1
467