Sfm ca final old course exam.

Although I have not attended, but got reviews (and saw the question paper too) it was a bit different, that too bad wala different. I want to know more to gauge ICAI's approach for group 2

Q 6A Mergers......... 900000/150000 x14 = 84     & 240000/60 x 10 = 40

Given to consider 25% Premium on Mkt Price of XYZ = 40x25% = 50

84/50 = .5952 x 60000 = 35714  Shares 

New EPS Total Shares of ABC Post Merger = 185714....Combined Income = 1140000/- So 1140000/185714 = 6.1384

Impact of Merger on EPS.... ABC increase by .13 paisa Per Share & XYZ Decrease by .35 paisa Appx

MPS if PE Remains Same i.e (PE of ABC Orginal @ 14) = 6.13 x 14 Appx 85.83 MPS

PD Declines to 12 then it will be 6.13 x 12 = 73.56 MPS

Hope you got the Detailed Answer... I worked it this way... Hope I am right

Question 6B......... 1+015 / 1.006875 x 72.50 = 73.0850 Rate of $.. So $ at Premium

Expected rate of $ = 73.0850

Forward Rate Premium = 73.0850-72.5 = (.5850/72.5) x100 x 4 = 3.2275% on annualised basis

Question 5A........ 15/.94x100 = 15.95 = 2 = 17.95 % Reqd Returns by MF to give 15% net returns

Alex Earning 40Lkhs at 90% time utilisation So at 100% it will be 44.444 Lkhs ( Increase in Proff Income by 4.44 Lkhs)

He can Earn on Own at 15% on 50 Lkhs i.e 50x15% = 7.50 Lkhs

If he Invest into MF Multicap Fund he get 13% i.e 50 x 13% = 6.50 Lkhs

Now                        6.50 MF Income

Additional  Proff       4.44 Lkhs

           Total          10.94 Lkhs

Less                      7.50 his Earnings if he Manage his Portfolio on Own

So Net Gains     10.94 - 7.50  = 3.44 Lkhs

Hence Mr Alex should go for Multicap MF Investment

Q 5B  Borrow $ 50000/101.5x100 = 49261.083 in USA ( this will equal to 50000 after 3 months when Repayment to be made)

Encash it in India at 72.65 x 49261.083 = Rs 3578817.678

Invest 3578817/- in India for 3 months @ (12% PA) Earn 35 for 3 Months you get Total 3686181.51

buy future $ 50000 @ 73.40 = 3675000/- Benifited at 36.86 - 36.75

After 3 months Convert Rs - $ 50000 @ Go Back to USA Refund

If rate is 73 - 73.42 than accordingly calculate earnings with 73.42 buying rate

My Friends I have written the Paper So I can say Paper was straight except for some 10 - 15 Questions Marks put you thinking Else other Questions were quite straight with a bit of reading 50 marks was Just straight..... See above I have given 32 marks Clear Answers... May be I am wrong than Pls correct my answers

3A (1) was also little tricky on GST issue but if read & understood than it was easily cracked... Calculate PV as per given Inflows & - 1000000/- is the first answer.. Here Project is not Viable NPV is -ve

Than Increase 8% in Inflows & Reduce 8% from outflow ( 10,00,000/-)

Here NPV is +ve

Q 1C..... Missing Figure is at 350......

Compare Market to Book Value of other Comparable Verticals you will get 25 i.e 450/18 = 25...... 400/16 = 25 accordingly 14x25 = 350 So putting the missing figure question can further be solved.....

Here I have my own view of solving, Pls correct me if I am on wrong Fundamentals & Concepts of solution...

1A/1B/1D .... Hope dont need any answer to be given... hope all know how it could be done...

So have given Q5AB & 6AB = 32 + Quest 1 of 20 Marks & 3A of another 8 Marks   = 60 marks ( Keeping 1C on doubt - 5 Marks) 55 Marks are clear take Theory of 16 Marks was Simple take 10 marks

So Q 5 & 6 full & Q 3.. 60%  Question you get atleast 42 Marks + Q 1 say worst case 12 marks as the Bond & Cap Budg were straight & simple & add another 10 for theory + 64 marks... Other Question you get even 5 - 8 marks it takes to 70... now take conservatism of 10% reduction than too 65 has to get....... So friend just Chill... who ever has done SFM even a bit nicely has to get exemption & his Aggregrate will be helped provided other subjects are gone reasonable in G 1 Old Sylbs.... My Exams are Over... G2 is cleared Just waiting to get G1 cleared.. Hope it cracks this time so 2020 will be CA

Friends Pls correct my answers if they are wrong anywhere so I judge my results