Sir can you please reply If we calculated commonsize sum based on gross sales means Wiill the allot any marks or will the cross the entire question sir ??? Please reply sir
Direct formula of I(1-t) should be applied when redemption data is not given in the problem as done in case of Term loan. But since redemption data is available for Debentures, it is ideal to use formula of Redeemable debt. The same approach is used in module in illustration 26 ( pg 267)
Sir, In the text book the tax benefit is given also to the interest rate under debentures. I did that i.e 12(1-0.4) and got answer as WACC 13.115%.
Hello Sir, For cost of capital to calculate kd, I have multiplied tax with 12(0.60) and kd was 9.57% so this is also a correct method?
Sir 5 saal m growth hua 2 m 10% krke ad hoga naa
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Sir can you please provide management accounting solutions too
Solution video uploaded
Sir though it is on cash cost basis, but it is written that depreciation is considered as part of cost of production sir na
Depreciation is a non cash cost and since question is saying cash cost basis & so depreciation has to be removed
Sir can you please reply
If we calculated commonsize sum based on gross sales means
Wiill the allot any marks or will the cross the entire question sir ???
Please reply sir
no
Direct formula of I(1-t) should be applied when redemption data is not given in the problem as done in case of Term loan. But since redemption data is available for Debentures, it is ideal to use formula of Redeemable debt. The same approach is used in module in illustration 26 ( pg 267)
@@CAOmkarAmbre sir pls check illustration 29 pg 284. They have used I(1-t) though the redemption data is provided.
They will allot maximum 2 to 3 marks since calculation base for entire question is incorrect