Wcm

asked 1 day ago

Why discount is not deducted here?discount In old scheme is 160 lakhs*50%*2% right.why it is not comsidered

latest answer

No answers yet!!

Jaggu Achalla

CA Inter

★ 5

0

25

doubt regarding computation of cash flows after tax

answered 2 days ago

sir, im a little confused about the terminology used in this question, the term used in the question is" earnings after tax" but you have assumed it to be cash flows after tax,will that assumption always hold true?,what if the the terminology used is profit after tax instead of earnings after tax??

latest answer

thank you sir

aravind lalji

CA Inter

★ 0

2

23

illustration 4 part3

answered 2 days ago

in the projdcted p&L the RM is shown as 470..actually it is calculated as 420

latest answer

420 is the RM consumed. But as Op st of 150 & cl st of 200 is mentioned, therefore RM purchased = RMC+ cl st - op st = 400+ 200 - 150 = 470

Vidya Suresh

CA Inter

★ 6K+

1

13

relation between eps and value of firm

answered on 04-May-24 13:29

sir, i dont get it, why cant we just calculate the minimum cost of capital for the given alternatives,the option having the minimum cost of capital should maximise the firms value, right?why do we have to go for that option that maximizes eps?how can we say that maximising the eps of a firm will eventually lead to maximisation of value??

latest answer

Having the least cost is one of the factors, but not only factor to result in the highest value. Also, as per few theories irrespective of capital structure, the overall cost & the value of the firm would remain constant. Hence trying to find the optimal capital structure from the benefit pov is another approach, where EPS is the ultimate benefit left out after addressing all the finance costs. Hence it is considered as a wealth indicator. Also for the firms which are traded in the market, EPS multiplied with PE ratio gives value of MPS which is also a wealth indicator.

aravind lalji

CA Inter

★ 0

1

44

Investment

answered 2 days ago

Why sale of old machine is taken net of taxes.please clarify sir

latest answer

Okk thank you

Ramya Telikicherla

CA Inter

★ 6K+

4

57

Investments

answered 1 day ago

Please clarify this sir.this is mtp 1 sir .here they computed short term capital loss.but practical questions 10 and 11 of ICAI is also same model.But there they didnt compute stcg or stcl.if in question didn't mentioned anything about capital gain tax should we compute it or not

latest answer

OK sir thank you

Ramya Telikicherla

CA Inter

★ 6K+

10

65

Investments

answered 2 days ago

This is may 24 RTp.here in the solution stcg is nil.what should be the treatment if stcg or stcl arrises

latest answer

Ok sir.thank you

Ramya Telikicherla

CA Inter

★ 6K+

4

53

doubt regarding computation of cost and debt

answered on 03-May-24 17:22

sir,in this sum, while computing the cost of equity using the second method you have taken the cost of capital to be 15%(pre tax) and while computing the overall cost of capital you have taken the post tax cost of capital.why is that so???

latest answer

The computation of Ke in the 2nd method is based on formula, where Kd is pre-tax. Please go through the derivation of the formula in the video lecture to understand that better. Regarding the Overall cost, as per the fundamentals, it shall be computed based on post tax specific costs only.

aravind lalji

CA Inter

★ 0

2

49

Marginal Tax rate

answered on 06-May-24 12:59

Is there a difference between Marginal tax rate and Normal tax rate ?

latest answer

Ok sir , Thank you for your clarification

THARAKESH M

CA Inter

★ 32K+

2

45

Table book in exam

answered on 30-Apr-24 12:19

I wanted to know whether Present Value and annuity tables are provided to students[on request] in FM exam?

latest answer

They are provided

Yoganathan LAKSHMANAN

CA Inter

★ 125

2

48