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Calculation of Dividend
AFM
answered on 02-Sep-24 09:50
The dividend yield is given as 4.8% per annum. So, while calculating the yield on 50% of the stock, why did we calculate using 4.5% instead of 4.8%*6/12? Why have we consider the per annum yield?
latest answer
Diff companies pay dividend at diff times, Hence i assumed that 50% of companies paid full dividend. You can also assume like what you mentioned
Deepak Jain
CA Final
★ 0
5
378
Factors affecting option pices
CFA
answered on 01-Sep-24 20:20
How does the time to expiry affect the put option - I did not get the logic
latest answer
Greater the time, greater the opportunity for volatility to play its part on either side and enable a put or call option to become in the money. Hence longer duration options have higher price even if they r out of the money.
Vasudha TK
CFA L1
★ 70
1
204
SA-3420
Auditing
answered on 03-Sep-24 21:40
Here are the situations where a company should issue a prospectus: 1. Initial Public Offer (IPO) 2. Further Public Offer (FPO) 3. Rights Issue 4. Bonus Issue (if it involves an offer to the public) 5. Private Placement (if it exceeds 200 people in a financial year) 6. Issue of Debt Securities (e.g., debentures, bonds) 7. Conversion of Securities (e.g., convertible debentures into equity shares) 8. Offer for Sale (by existing shareholders to the public) 9. Issue of Securities to Public through a Stock Exchange 10. Issue of Global Depository Receipts (GDRs) or American Depository Receipts (ADRs) Additionally, a prospectus is required in situations like: - Scheme of Arrangement (under Section 230 of the Companies Act, 2013) - Merger or Amalgamation (if it involves an offer to the public) - Demerger or Spin-off (if it involves an offer to the public) Mam Only in this Circumstances we issue prospectus??
latest answer
Then it’s right. In the above cases prospectus is issued .
Surya Prakash
CA Final
★ 19K+
3
266
cost of capital
Financial Management
answered on 02-Sep-24 20:05
In ICAI material the illustration 3 said it is issued at par (question 3 in class) in material provided by 1FIN it is not said issued at par so we taken Net proceeds as market value, but in ICAI material it is said that it is issued at par the why the net proceed is not considered as IssuePrice?
latest answer
Institute has followed different approaches in different problems. In such cases marks will be given to any approach which the institute has followed. Yet, to avoid confusion, if the computation is for the securities which had already been issued in the past consider current MV. A detailed video has been provided to the students. Please refer if needed.
Muhammed Salih
CA Inter
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3
368
corporate issuers
CFA
answered on 01-Sep-24 20:22
A firm is considering a project that would require an initial investment of THB270 million (Thai baht). The project will help increase the firm’s after-tax net cash flows by THB30 million per year in perpetuity, and it is found to have a negative NPV of THB20 million. The IRR (%) of the project is closest to: A. 11.1%. B. 10.3%. C. 12.0%. is it possible to solve this via calculator if notpls share the solution
latest answer
Use elimination technique Npv = -20 and outflow is 270 implies PV of inflow is 250 Check which is correct 30/.111 30/.12 Which gives answer as 250 Answer is 12%
Dhakshana Dhakshana
CFA L2
★ 18K+
1
394
Alternation of share capital
Corporate & Other Laws
answered on 02-Sep-24 16:12
Which resolution shd be passed for the alternation of share capital .special or ordinary?
latest answer
Section 61 of Companies Act, 2013 deals with power of limited company to alter its share capital. According to this section a limited company having a share capital may, if so authorized by its articles, alter its share capital by passing an ordinary resolution in general meeting
Lucky Ten
CA Inter
★ 0
2
301
SAE-3400
Auditing
answered on 01-Sep-24 16:40
Can we use the term auditor in PFI
latest answer
Yes. Audit is high level of assurance. N others are limited assurance or non assurance engagement. So practitioner is appropriate.
Surya Prakash
CA Final
★ 19K+
3
294
Illustration 50-Regarding PV of Lease Payments
Financial Reporting
answered on 09-Sep-24 17:33
When the lease payment schedule is revised the annual lease payments are Rs190000. So while checking for whether it is operating lease or finance lease; we need to check the condition of PV of lease payments has substantially covered the fair value of asset. During computation of revised pv of lease payments, the fixed lease rent is taken as 195000. Should it be taken as 190000 and then computed? then the pv of revised lease payments will be (190000*1.9484)+(350000*0.8996)=685056.
latest answer
Ok sir. Thankyou
S Shriram
CA Final
★ 0
2
211
Forex - Fate of forward contracts
AFM
answered on 03-Sep-24 12:49
Sir, in case of cancellation on due date, why is interest not calculated ? because if in interbank if bank had agreed to buy , now on due date it has to honor the contract , so it needs to BUY and SELL @ spot rate on the same date , there is inflow and outflow right ? can u please explain why interest is not considered.
latest answer
Thank you sir
Enuguru Sai Nithin
CA Final
★ 78K+
2
345
AS 29
Accountancy
answered on 02-Sep-24 08:30
Question:- Chaos ltd entered into an agreement to supply 1 lac face masks to D ltd by 30th April 2022, failing which it will have to pay a penalty of Rs 10 per item not supplied .On 31st March 2022 chaos ltd assessed it could not supply 50000 face masks to D ltd on 30th april 2022. Doubt: in this question why cant i say there is present obligation for chaos ltd to pay penalty for 50000 goods as on 31st march 2022 since chaos ltd themselves has estimated that they wouldnt be abled to supply 1 lac goods to D ltd within time.
latest answer
thanks for clarity
Niveta Rajkumar
CA Inter
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3
338