'stratagic financial management

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Querist : Anonymous

Querist : Anonymous (Querist)

18 November 2014 in question of sfm in makkar sir's book they have not used weighted capital to find ROA/ROI (i.e no. months debt was actually taken was not considered). is it correct why so

Querist : Anonymous

Querist : Anonymous (Querist)

18 November 2014 similarly while finding EPS they have not used that weighted avg. equity shares

Querist : Anonymous

Querist : Anonymous (Querist)

18 November 2014 similarly while finding EPS they have not used that weighted avg. equity shares

Amol S Joglekar

Amol S Joglekar (Expert)
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18 November 2014 people do have different methods to find out the answer. Under examination condition, in the absence of any specific information, the one which is most near to the actual formula be used.

Querist : Anonymous

Querist : Anonymous (Querist)

18 November 2014 but information was available that the debt was there for 9 months

Querist : Anonymous

Querist : Anonymous (Querist)

18 November 2014 and rather amt of debt is found on the basis of interest charged rate of interest and the period . but when ROA was to be found he added whole amt to ,rather than weighted amt for 9 months, equito capital to find capital employed

Querist : Anonymous

Querist : Anonymous (Querist)

18 November 2014 i came to believe that it is just usual practice as far as sfm is concerned

Amol S Joglekar

Amol S Joglekar (Expert)
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18 November 2014 Not a regular practice as such. You can work with the same.

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