Is Going concern value = Firm value ? as per the image. And if so, then in class, sir took 10% of EV as distressed firm value saying it includes everything and is infact comparable to the firm value. Please clarify.
SSEI QForum Latest Questions
Why aren’t we considering value of cash and marketable securities when calculating GC value? If the reason is because it is written in STEP 1 – GC VALUE ON AN EV BASIS, what’s the logic? In the previous sums, when we ...
In Step 6- Tax advantage of debt, shouldn’t we have used Book value of debt? as the interest that will be debited in P/L will be based on BV (rate*BV of debt). Also, one more thing, for the purpose of calculating ...
In Q.36 we are computing EAC and in Q.37, we are using NPV, reason being it is not a repetitive process. Isn’t Q36, also a one time thing? Shouldn’t we have used NPV? (I want to know conceptually, not what ICAI ...
I’m a CA Finalist, CFA L2 Candidate, and soon to be a graduate from SRCC. So that was about my academics background. Coming to the question – I have 2 options – Do Articleship from Big 4 in Statutory audit or do ...
There is constant CF from year 5 forever, so we do A/i to get 50 million. My question is, where does this CF come? Year 4 end or year 5 end? As we are applying a P.V. model, it should come a ...
We say that asset returns follow normal distribution but the returns cannot be less than -100%. And since, N.D. extends from -infinity to +infinity, how come we say returns follow N.D.? Is being symmetrically bell shaped the only requirement for a ...
Can someone define Operational and Target independence of Central Bank? Cause there’s one thing written in the CFA core material and other in the answer to question provided by them. They are contradicting their own definition. Sanjay Sir had also made ...
Good evening sir. I hope you and your family are doing well. I’m 3rd year student from SRCC (Delhi), CA Finalist and also a CFA L1 candidate (exam due in nov.21). Soon campus placement will be starting and Big 4’s and many ...
“The cornerstones of exchange traded derivative markets are market makers (or dealers) who own membership of the exchange.” Can someone please explain whom are we referring to as “market makers”? As per my understanding, they are present in the OTC markets and ...