Ca final sfm paper

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??

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

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 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.

well i believe the answer for 1.a. is 104.40 something.

This is also known as two phase model

Solution according to me :

(4)(1.20)(0.8696)+ (4)(1.20)(1.20)(0,7561) + (4)(1.20)(1.20)(1.10)(0.7561) / 0.15-0.10 --->Terminal Value

=4.8*0.8696 + 5.76*0.7561 + 6.34*0.7561/0.05

=4.17+4.36+95.87

=104.40

Yaaaa.. that was my answer... thanks dude

Indian Japan was tricky

The quote should be JPY/INR that is JPY/Dollar * 1/INR/Dollar

and most importantly the value u get should be the denominatior ie 10,000,000/ JPY/INR

Remember the exporter is paying .

Use the logical sense too

My mistake - I multiplied with JPY/INR instead of dividing :( 

However the second part of question i can get full marks :)

cost of equity was 20.74%