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Why we consider only FCFF
AFM
answered on 17-Jun-24 19:54
Is how can we identify that we should Only FCFF here??
latest answer
Pls be specific - which Q no?
Surya Prakash
CA Final
★ 19K+
3
399
Financial statement Analysis (FSA)
CFA
answered on 17-Jun-24 18:41
Kindly explain the weighted avg sh outstanding calculations how 11k,3300...here they added 1+interest rate I didn't Understand explain pls
latest answer
Bonus shares adjustment. Like you do in AS20
Dhakshana Dhakshana
CFA L2
★ 18K+
10
537
profit/ loss in futures
AFM
answered on 17-Jun-24 16:09
Hi sir, In futures when interest rate is 4.5% we will sell future @ 94.15 and bought back @95.5. So the loss is 1.35 Euros (94.15-95.05). But why we took 1.35 %, isn't it 1.35 Euros loss for 1 future ?
latest answer
On a FV of Euro 100, loss of 1.35% is 1.35 Euro
B. Dinesh
CA Final
★ 3K+
1
378
Hedge accounting
Financial Reporting
answered on 18-Jun-24 10:18
Writing put option is not a hedging instrument. Like wise writing call option is a hedging instrument or not ? And why
latest answer
Animation mistake. Thanks for highlighting. In video I have mentioned written option only. Will correct.
Chandan Subudhi
CA Final
★ 12K+
4
343
FSA
CFA
answered on 17-Jun-24 11:54
What is double declining balance method of depreciation? I'm finding it difficult to understand can anyone explain
latest answer
As the name suggests its "Double" the SLM rate. Just a way of arriving at rate in a simplified manner.
Dhakshana Dhakshana
CFA L2
★ 18K+
3
314
Interest rate guarantee
AFM
answered on 15-Aug-25 18:17
Hi sir, In interest rate option you said it is also called as interest rate guarantee. But in interest rate option we have 3 fixed options i.e. cap, floor and collar. But here we did differently from those 3 options. so can you please explain what is meant by and what are the properties of interest rate guarantee in this illustration context.
latest answer
Cap and floor
B. Dinesh
CA Final
★ 3K+
5
581
Issues a loan
AFM
answered on 16-Jun-24 18:02
Hi sir, here they said XYZ Inc issued loan, so doesn't it mean XYZ issued loan and it will receive interest
latest answer
Here think of it as issuance of a bond. When you issue bond, you pay interest. Secondly when you buy a cap it means, that you are trying to restrict interest payout.
B. Dinesh
CA Final
★ 3K+
1
351
Cost of the collar
AFM
answered on 16-Jun-24 17:59
Hi sir, in the end they asked us to explain the cost of collar, does it mean the payment/ receipt of collar or premium paid for cap and premium received for floor ?
latest answer
In this q they asked abt cf and also cost of the collar. It is a zero cost collar based on the question, so obviously the questions intent is more abt cf due to collar
B. Dinesh
CA Final
★ 3K+
3
371
Bull calendar spread
AFM
answered on 16-Jun-24 16:35
Could u please tell me the video number where bull calendar spread concept is explained?
latest answer
The video was corrupted and since this is not in syllabus anyway we did not record it again. Gave concepts in notes
Hanumanthu Rajesh
CA Final
★ 7K+
1
351
AS 10
Accountancy
answered on 17-Jun-24 10:56
In the illustration no.18 the solution is stating to consider the gas required to push the gas out for sale as per AS 10.Here my doubt is as per AS 10 natural gas, mineral, oil wont be considered as PPE. So how they are treating as per AS 10?
latest answer
The cost of dead stock which is required to keep plant operational will be considered as PPE as without it the plant cannot be operated.
Niveta Rajkumar
CA Inter
★ 6K+
1
445