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Explicit period and Perpetuity period
AFM
answered on 20-Jul-24 19:52
Let's say Dividend is expected to grow at 18% per annum for the next four years. The growth will decline linearly to 14% per annum after first four years. Thereafter, it will stabilise at 14% per annum infinitely. Growth rate for, D1to D4 = 18% D5 = 17% D6 =16% D7 = 15% D8 to D infinity = 14% 1st case: P = PV of Dividends from D1 to D8 + PV of P8 --- WHICH IS USED IN ILL 28 2nd case: P = PV of Dividends from D1 to D7 + PV of P7 --- WHICH IS USED IN ILL 39 2nd case logic is used in this Ill 46 as well. What is the logical or appropriate method? 1.
latest answer
Thanks sir, I reverse worked this Illustration and arrived same CMP given in the question.
Durai Murugan
CA Final
★ 470
2
404
Ratio Analysis
Financial Management
answered on 20-Jul-24 16:34
In illustration 3 If we prepare for trading,p&l a/c in such a case whether taxes are to be taken as an expense or not
latest answer
yes to be taken
Gopichand Annamadasu
CA Inter
★ 270
1
213
IND AS 38
Financial Reporting
answered on 22-Jul-24 12:22
If in the attached question software was 10 and robots were costed 4 cr then as significant amt was of software so entire 14 cr is recognised as intangible asset, it is correct sir
latest answer
Its not based on amount. Its based on nature.
R Yashwanth Kumar
CA Final
★ 87K+
3
278
sh cap n Deb
Corporate & Other Laws
answered on 23-Jul-24 15:15
pls explain this with example only the bracket of pt 1
latest answer
I am unable to read such text in the image you attached. can You mention where it is mentioned with a clearer picture.
Sushmita Chowdhury
CA Inter
★ 2K+
16
395
Exemption to RPT disclosure
Financial Reporting
answered on 22-Jul-24 12:33
How is it an exemtion if the entity has to anyways disclose the name and relationship and significant transactions with the government?
latest answer
Part exemption you can consider.
Dhvaritha Ravishankar
CA Final
★ 7K+
1
244
Debt Equity
Corporate & Other Laws
answered on 24-Jul-24 10:44
Why CRR is not utilized first, in this question? Why free reserves was given the first priority?
latest answer
Okay thank you I got it now
Mahesh Ram
CA Inter
★ 0
8
337
Late fee chaarged today
Exams
answered on 20-Jul-24 09:12
sir in Icai exam annoucement it has been stated that last date for exam fee without late fee is 20th july.Now i appiled for exam sir i has been charged the late fee sir.What can I do.I also attach the Screenshot below Sir
latest answer
Okay Will do it
STEPHENRAJ MESSACH
CA Inter
★ 14K+
2
421
Entity Committed to enhance the performance
Financial Reporting
answered on 20-Jul-24 07:29
Here, whether the term committed means "Commencement of Enhancement" or "Completion of Enhancement", sir?
latest answer
Committed means the entity will do/execute. Think of it as “commitment” to a relationship.
Swathi S
CA Final
★ 975
1
200
Estimation to be based on Present Condition
Financial Reporting
answered on 20-Jul-24 07:27
There is a manufacturing entity, which already has 3 divisions. Now, its going for an expansion for 3rd division. The 3rd division is not set for production, it is still in Work in process. All the 3 division is a single CGU. Whether cashflows of 3rd division would be considered or not, sir?
latest answer
If already costs are committed the considered.
Swathi S
CA Final
★ 975
1
287
Regarding NPV computation
AFM
answered on 09-Apr-26 20:54
In illustration 7(a) we have computed NPV as NPV= PVCF-Issue price. But in illustration 7(b) we have computed the same NPV as, NPV=PVCF-Market price. Here the issue price is given as Rs.100. Why are we not taking issue price while computing NPV?
latest answer
Because No other data is given, you have to assume it that way only. We cannot make assumptions issue price
S Shriram
CA Final
★ 0
3
287