Fixeed income wrt Asset backed securites

answered 1 hr ago

One of the primary benefits of securitization is that it: A) improves the collectability of the loans that are securitized. Incorrect Answer B) improves the legal claims of the security holders to the loans that are securitized. Correct Answer C) removes problem assets from the issuing firm’s balance sheet. correct ans is option b pls explain why not option c???

latest answer

Because assets get added back due to consolidation Option c is not correct Option B is correct because SPE has specific recourse over loans once assets are securitized. If not, the investors will not have specific title but have general paripassu cover over all assets of the bank

Dhakshana Dhakshana

CFA L1

★ 18K+

3

39

Cost of capital

answered 3 hrs ago

Regarding growth model when should we add growth to dividend of not specified in the question How can we know is growth is added or not

latest answer

The question will specify if there is a growth factor, only then it shall be considered

Koti reddy

CA Inter

★ 0

1

32

Ratio analysis

answered 3 hrs ago

When should we use cost of goods sold and when should we use sales for calculating ratios

latest answer

For computation of stock turnover ratio always prefer cost of goods sold. If it is either not given or not computable then sales may be considered

Koti reddy

CA Inter

★ 0

1

33

Investment decision

answered 3 hrs ago

Sir, I have a doubt. In computing the 'Base case PV' in the new Illustration 52 in the IFIN class, why is the present value of cash inflow computed as 'Annual cash inflow (₹42 lakh) ÷ discount rate (14%)'? The PVCI is ₹300 lakh.

latest answer

Because it is clearly mentioned in the question that 42L is indefinitely received.. hence CF/r gives the PV of indefinite cash flows

Muhammed Salih

CA Inter

★ 17K+

1

61

Doubt

answered 3 hrs ago

Dear sir/madam, I have completed my articleship iam applied form 108 it shows completed whether icai will issue any certificate

latest answer

No

Chandramouli A

CA Inter

★ 720

1

56

Equivalent annual cost

answered 4 hrs ago

Sir in this soln why we did not consider minus Like -46,086/.08696 = -52,997 but we have considered 52,997

latest answer

I did not want to write it as cost of -52.997 have wrote it as 52.997 just like you say Net Profit of -10 or loss of 10 i ignored the sign because i was referring to cost

R Yashwanth Kumar

CA Final

★ 81K+

1

52

All

answered 3 hrs ago

All accounts papers ca foundation

latest answer

Complete Company Accounts, partnership Accounts, Rectification, Inventories, Depreciation, NPO and Single Entry. Then focus on remaining chapters.

Subhashini S

CA Foundation

★ 5K+

3

62

Redemption value

answered 1 hr ago

Redemption value=bookvalue/Market value (based on what they given) Net proceeds = fv-dis-flo.cost Then why we written as reverse Rv=FV Np=mv

latest answer

Tq sir

anju B

CA Inter

★ 19K+

2

67

Article registration

answered 3 hrs ago

I uploaded my details of OP and ITT. It's showing like this. Can anyone know about this issue?

latest answer

Pls contact ICAI SSP Helpdesk

Kurva Mahender

CA Foundation

★ 5K+

1

64

Unrealized Profit

answered 42 mins ago

If inventory is valued @10% less means profit should also be reduced by 10% ? so unrealized profit will be 22,500 ?

latest answer

Understood sir Thank you

Anirudh Srinivassan N

CA Inter

★ 930

4

67