Cs final june 2013 ftfm solutions

Reji (MD) (783 Points)

05 June 2013  
Hi Friends, 
We are very very happy to inform you all that Our PAVITHRA Academy CS Professional Financial, Treasury & Forex Management Material has covered 100% of the June 2013 Exam Question Paper.
Please check
Q.1 Comments
(i) Discussed in Classroom under Chapter 1. Nature & Scope of FM, 
  (ii) Covered under technical tools of Capital Budgeting
    Hint: At IRR, NPV = 0
(iii) Covered under Chapter 13. Theory  - Treasury Management -Q. 32
(iv) Discussed in Classroom under Chapter 4. Capital Structure Decisions
(v) Covered under Chapter 2. Sources of Finance - Q. 4
 
Q.2 (a)  Dividend Policy
Same Conceptual Question under Chapter 3. Dividend Decisions Q.4 
using formula MPo = D1 / (Ke –g)
Hint:  Ke = 1 / P/E ratio.
 
Q. 2 (b) Working Capital Management & Control
Same Question under Chapter 8. Working Capital – Receivables Management Q.14 
(Using Cost Benefit Analysis) 
Hint: Average Debtors = CoGS/ DTR
 
Q. 2 (c) Captial Structure Decisions
Same Question under Chapter 4. Capital Structure Decisions – Leverages Q. 14  
Hint: Total Assets Turnover Ratio = Turnover /Total Assets
 
Q.3 (a) Working Capital Management & Control
Same Question under Chapter 8 – Inventory Management  E/Q.3 
Hint: EoQ = 2AO/C
Q.3 (b) Capital Structure Decisions
Same Conceptual Question under Chapter 3 – EBIT/EPS Analysis - Indifference Point  Q.6
 
Q.4 Differences
(i) Covered under Chapter 1. Nature & Scope of FM - Q.7
(ii) Discussed under Chapter 7. Forex Management – Internal Hedging Tools 
(iii) Covered under Chapter 13 Theory  – Derivatives Q.18
(iv) Discussed in Classroom under Chapter 9. Portfolio Management 
(v) Covered under Chapter 7. Forex Management – Theoretical Relationships 
      (IRPT & PPPT)
 
Q.5 (a)  Dividend Policy
         Same Question under Chapter 3. Dividend Decisions Q.10 
         Using Formula nPo = {(n+m) P1 – I1 + X1 }  / (1+Ke)
Q.5 (b) Derivatives & Commodity Exchanges
         Same Question under Chapter 6. Derivatives – Q. 16 Hedging with Futures Contract
Hint: No. of Future Contracts =   
 
Q.5 (c)  Forex Management
         Same Question under Chapter 7. Forex Management – Arbitrage E/Q. 24.
         Hint: Buy INR, Convert to GBP & then Convert to USD. Net gain in USD $1.13 Lakhs
 
Q.6 Working Capital Management & Control
        Same Question under Chapter 8 – Estimation of Working Capital -  
        E/Q.4 Tandon Committee Norms 
       Hint: Net Working Capital – Rs. 46,95,990 ; MPBF = Rs. 33,20,125 & CR = 1.33
 
Q.7 Short-Notes
(i) Covered under Chapter 2. Sources of Finance -  Q.6
(ii) Covered under Chapter 7. Forex Management – Currency Risk 
     Hint: Transaction & Translation Risks 
(iii) ATL – Transfer Pricing
(iv) Discussed in Classroom under Chapter 9. Portfolio Management 
(iv) Covered under Chapter 13 Theory  – Project Planning Q.9     Hint: ERR, DRC & ERP 
(v)  Covered under Chapter 2. Sources of Finance -  Q.10 Sec.79A of Companies Act