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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

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

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

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

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

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

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

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

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

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

Niveta Rajkumar

CA Inter

★ 6K+

1

445