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Uneven cash flows
CFA
answered on 28-Jul-24 14:19
Hello , i was referring to the CFA curriculum and am not able to understand the topic "Equity Cash Flows with Two-Stage Dividend Growth" . Below are the details. Is there any videos available which i can refer to? I checked schweser video on that topic but their teaching method is different than the one in CFA. Any pointers is helpful Quants Chapter/Reading - TIME VALUE OF MONEY IN FIXED INCOME AND EQUITY Exhibit 6
latest answer
same concept is present in equity investments / equity valuation topic too - can you have a look at that please and then let us know if you are able to understand . If not will help you to understand in some other way
Danny John
CFA L1
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1
427
Amalgamation
Accountancy
answered on 13-Aug-24 11:42
In question they didnt specified about cash balance take over not why they didnt transfer it to Cash ledger...
latest answer
We can assume that cash is taken over.
Rohith Kumar
CA Final
★ 4K+
1
328
H model - Equity
AFM
answered on 28-Jul-24 13:39
Sir, if we solve this illustration using two stage model price is arrived at Rs. 123.86. Meanwhile using H model it is Rs. 127.88. Is it okay to solve using discount model?
latest answer
Unless they ask for H model use it stage DDM ONLY
Durai Murugan
CA Final
★ 470
1
382
Related party transaction
Indirect Taxation
answered on 31-Jul-24 12:28
The video is not available. Can u check with the issue causing the problem.
latest answer
Video is available. Kindly let us know the issue.
Pughalya C P
CA Inter
★ 23K+
4
213
GPF
Direct Taxation
answered on 31-Jul-24 12:34
If employee withdraw their GPF amount one year before retirement. Then their GPF amount is exempt or not for govt employees.
latest answer
Already answered in another query asked. Please check. Thank you.
Raliya Kani
CA Final
★ 3K+
1
342
Covexity Concept
AFM
answered on 28-Jul-24 19:30
Sir why in this illustration(51) you are multiplying 1/2 or 0.5 because you said 0.5 will come for convexity and not for price change similar in in illustration 50 also we haven't multiplied 0.5
latest answer
sorry. ps chk now https://1fin.link/forum/adc65eb9311c49ca8108d474dacf2cae
Bhoomesh Velan
CA Final
★ 3K+
3
474
Equity valuation
AFM
answered on 28-Jul-24 09:09
Sir, in this question we calculated Ke with ex-dividend price. So, Intrinsic value of gordon model represents ex-dividend price i.e no right to next immediate dividend?
latest answer
Next dividend is of course part of working Pls compute on your own both ways to work PV of Next year dividend d1 plus value to infinity from d2 Also compute d1 to infinity. Answer will be same
Durai Murugan
CA Final
★ 470
1
326
Audit opinion
Auditing
answered on 30-Jul-24 09:46
Hi maam what is meant by Pervasive on financial statements means Please explain with an example because i have confusion in this word
latest answer
A misstatement which has wide impact on over all financial statements. Or it affects one item which is very substantial part of the financial statements. Like- inappropriate accounting policy, or inventory being misstated. Please check SA 705 for more detailed understanding. This is used in the context of modified opinion .
R Yashwanth Kumar
CA Final
★ 87K+
3
451
Selling expenses and selling cost
Financial Reporting
answered on 31-Jul-24 14:48
To determine NRV, we have to reduce the estimated selling costs. But when we are determining the cost of inventory we are not considering the selling expenses. If a question ask to find the NRV and cost of a material and selling expenses are also given for the computation, should we reduce that amount from NRV and also should ignore while computing the cost of the material? Whether the selling expense and selling cost are same?
latest answer
Ok sir understood
Abhijith K B
CA Final
★ 5
2
287
Equity Valuation
AFM
answered on 28-Jul-24 09:14
Last part of the sum is bit confusing. Price = Actual yield / Expected yield x Paid up capital per share. Moreover, there is no info about no. of shares o/s to arrive Rs. 100 as paid up capital per share.
latest answer
It is a poorly structured question. Yes rs 100 is not given . You can assume it at 10 also. We are computing price as as function of yield the stock is giving hence the formula Such questions are not typically asked
Durai Murugan
CA Final
★ 470
1
375