[brithel1]

Second attempt and I got a 50%, hurray!!!.I don’t know if someone is as happy as me now. Thank you LORD JESUS.More encouragements to those who could not make it.

I am now an affiliate.

[brithel1]

I passed 50% and it was my second attempt. Hurray, no more ACCA exams saga. ACCA affiliate here I come.

To all who could not make it, JUST PRACTICE PAST QUESTIONS AS MUCH AS POSSIBLE.

[brithel1]

Thanks a lot.That was really helpful.

[brithel1]

42%, very devastating.Congrats to those who made it.I promise myself do trash this paper come Dec 2013 with GOD’s help ofcourse
.

[brithel1]

They opted a Euro call option because in four months time Lignum is to receive ZP140m which is not a currency used in France.To be able to have Euros,Lignum will have to sell ZP140M (i.e call the market to buy ) for Euros.

[brithel1]

The share price at the date of issue is 40c and at the date of repurchase it is $3.2(320c).
The company is now buying back the shares at a price higher than dt for which it was sold.So in other words,the company is spending an additional 280c(320c-40c) on those shares and that is why $17.5m is being deducted from the retained earnings.

The value of $17.5m can also be calculate thus,based on the above explanations.
N° of shares $48m/40c = 120m
The value of debt of $20m can be used to buy 6.25m($20m/$3.2) shares.
The additional amount spent on buying back the 6.25m shares is given by: (320c-40c)*6.25m shares.=$17.5m

Do u agree?

[brithel1]

I have not yet.i am taking it on the 4th of June, just like you.

[brithel1]

When calculating the value of a company using the free cashflow method the formula is FCFo(1+g)/(Ke-g)

I suppose 5% is the growth rate giveen in the question.

[brithel1]

Thanks alot Nick. That was really helpful

[brithel1]

0.61=Asset Beta(hotel services)*60%+0.4*40%

Let Asset Beta (hotel servises be) x

Now ; 0.61= x*60%+0.4*40%
0.61=0.6x+0.16
0.61-0.16=0.6x
0.45=0.6x
0.45/.6=x
0.75 = x

Hope that helped Carl29

[brithel1]

At the begining of an investment project an amount of working capital is used.Based on the nature if the investment, a growth in the level of working capital is estimated.

Taking the case of Tramont of Dec 11 Q1,it was estimated that the initial working Capital required is GR 40M and it was expected that the annual growth rate of working Capital is in line with the country’s inflation rate which was 9%.

It is thus calculated as
Y0 Y1 Y2 T3 T4
40 000 (.09*40 000 ) 3 600 (40000+3600)*.09=3 924 (40000+3600+3924)*.09= 4 277 (40000+3600+3924+4277)

or Y1 (40000*1.09)-40000 = 3 600 and so on.

It is recovery at the end of this project because it is to be sold at the end of its life as stated in the question.In other words working capital is recoverable in cased where the project is to be sold after a given period.

[brithel1]

It is june 12 not 11.

If Mije Co successfully acquires Nente Co, the expected value of a share of the combined company is $5.13 as calculated in the answer.

Now the share exchange is two of Mije Co’s shares for three of Nente Co’s shares.Three shares of Nente Co will now be valued as two of Mije Co’s which is $5.13*2 = $10.26.

The market price of 3 Nente Co’s shares before acquisition is $2.9*3=$8.7

So the value of Nente shares has increased from $8.7 to $10.26. Taking ($10.26-$8.7)/$8.7 = 17.9%

Hope that helped Rockerz

[brithel1]

yeah it really helped

[brithel1]

I am Brithel Ebai and i think BPP is a good text because it is elaborated and topics are well explained.It is what i am using.

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