Security Valuation- Equities

answered on 19-Feb-22 12:11

In Illustration 10(Sun Ltd), while calculating capital gearing ration, why are we not considering the current year undistributed profits in the reserves with opening balance in the denominator?

latest answer

Because as per the question there is no indication to state that the BS is before transferring Profit to reserves. So in such case one makes an assumption that the Reserves account in the balance sheet as on 31/3 already accounts /has considered current year profit

Suresh Avinash

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Derivative

answered on 19-Feb-22 09:29

can you please tell me ans of que 6(iii). basis - 24 ( spot 2400 - future 2376) its contango or backwardation?

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Yes Thanks for confirmation

DRASHTI DHANESHA

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Derivative

answered on 15-Feb-22 07:49

Can u please tell me When we calculate future , 1. F = S ( 1+ r)n - D 2. F = ( S - pv of D) (1+r) n When do use formula -1? When 2nd? Please clarify with short example. Thanks advance

latest answer

Got it Thank you so much

DRASHTI DHANESHA

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Equity valuation

answered on 09-Feb-22 10:00

Can anyone plz tell me when inflation given in risk premium , we should that % increase in RF or ( Rm - Rf)?? CAPM model Same que in portfolio management also

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Ok thank you

DRASHTI DHANESHA

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Portfolio Management - Illustration 5

answered on 03-Feb-22 12:04

In the equation for calculation of beta, mean of x² is 437.22(20.81*20.91). In the video, it is taken as 175.29(13.24*13.24). Is it an error? Please clarify. Please refer the attached screenshot taken from the video and question.

latest answer

Can you please go through the solution again? The solution is correct there is no error - you are probably confusing one term for another - you can check the ICAI solution also on page 5.43 it also has the same values x mean is avg mkt return which is 13.24 https://resource.cdn.icai.org/67843bos54415-cp5.pdf

Arjun Ks

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342

Derivatives

answered on 14-Jan-22 06:10

Is the margin requirement calculated on the "Contracted Price" throughout the tenure or the "Closing Price" as on that day?

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Contract value on day zero. after that the contract value changes as futures price keeps changing . From a practical real life perspective it is calculated on areal time basis every instant on the changing price of the future contract and if there is a shortfall, margin calls are made immediately.but for exam perspective u can say that margin is computed at day end on closing price of the specific maturity future contract

Tanishque Kumar

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International financial management

answered on 29-Jan-22 15:10

Can u explain where these 1.188 and 1.090 is coming from and how do u calculate cube root on calculator? Sfm module Tyk Q.5 xyz ltd

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1.Type 'value' which need to be calculated 2. Press square root button 15 times 3. Minus 1 4. Divide by 'x'. X is nth root. Eg: 2 incase of square root, 3 incase of cube root, etc. 5. Add 1 6. Press 'multiply & equal' i.e., 'X =' for 15 times. Finally u will get ur answer. Note: Don't press or use equal button anywhere from step 1 to 5

saumya A

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CA vs CMA sfm

answered on 08-Nov-21 07:01

If we take CA sfm classes cma sfm syllabus covered or not

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Large Portions of CA and CMA syllabus are the same - approx 75-80%. Those topics will be covered. balance topics will not be covered

Narasimha Raju

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Mutual funds

answered on 04-Nov-21 13:18

What are units in mutual funds please explain

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Units in mutual funds are similar to shares in the company's capital. that is there a small amount of portions in the total fund.

pandari santoshpandari

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What is difference b/w ETF And mutual funds.

answered on 23-May-21 10:41

1)how are ETF traded in exchange and how ETF are listed in exchange .(2) how ETF price is determined

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You are in CA Foundation - You will learn this in CA Final in detail. ETFs are Exchange Traded funds listed by MF companies. The listing process is explained in SEBI MF guidelines. You check a draft listing document in the link below https://www.sebi.gov.in/sebi_data/attachdocs/1449823285482.pdf ETF price is determined by the value of underlying assets they hold. ETFs are a type of mutual fund schemes.

Shreesha .T.u

CA Foundation

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