Ca final sfm paper

Page no : 2

Sanchit Agarwal (CA) (38 Points)
Replied 28 May 2014

Was answer of ques 1a was Rs95.82.

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Max Payne (employed) (2574 Points)
Replied 28 May 2014

i think i got 95.82... but i dont remember... i think i had made a mistake in that first cos i hadnt calculated DPS3 for calculating P2 but took it with DPS2... i realised the mistake and made a correction there... anything similar??

MAYUR BIYANI (Assistant Manager-Taxation & Accounts) (142 Points)
Replied 28 May 2014

87.** hai 1a ka answer

Vineet Aggarwal (Article Assistant) (144 Points)
Replied 28 May 2014

I got negative EVA ...so i wrote zero ....is it correct ?.......

Raunak (CA Final) (227 Points)
Replied 28 May 2014

Well i must say this was far way too straight paper that one can get ever, so perhaps corrections are gonna be tough. Quite a few questions were directly from practice manual..

A lil detailed view :

1.a.Easy.Dividend Policy

b.Easy.Equated Annual Cost

c.Cost of Debentures formula

d.International Finance.Repeated.Practice Manual

2.a.Capital Budgeting.Tricky.New

b.M&A.Manageable.

3.a.Mutual Funds.Easy.Practice Manual.

b.International Finance.Conceptual

4.a.Easy.Same asked in FR paper.EVA can be -ve, no problem with tat

b.Capital Budgeting.Conceptual

5.a.Factoring

b.Easy.Repeated.Practice Manual

6.a.Bonds.Conceptual with basics

b.Concept of EMI.Asked only once till now.Conceptual

c.Theory.Capital Budgeting i guess

7.a.Practice Manual

b.Practice Manual

c.Practice Manual

d.Practice Manual

d.New

So, overall .. if you have studied even the basics with full coverage..passing is not a problem at all , exemption only if full efforts put in.

From Practice Manual : Around 40 marks.

International Finance : around 21

Capital Budgeting : around 20

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CA D. Singhal (CA ) (490 Points)
Replied 28 May 2014

Please correct me if I am wrong but even if NOPAT is less than wacc×ce, we can't conceptually write eva as -ve, we should rather say that there is nil EVA. #I strongly think I have read that in insti mat somewhere

PRATIK (student) (34 Points)
Replied 28 May 2014

plz someone tell me correct answer of q1.a nd is it right if i gave assumption in eva that income is before tax and i deducted tax from it and then added post tax interest cost.

Raunak (CA Final) (227 Points)
Replied 28 May 2014

@ pratik ur right

@ D.Singhal : https://220.227.161.86/19335sm_fr_finalnew_cp10.pdf

page 10.27. says RIL s EVA is negative, therefore no restriction to say that it should be written as nil. Moreover its called shareholders wealth measure and is also a registered trademark.