[confideans]

Thank you for your clarity and plain english. It would be really helpful if the model answer was like your answer and lecture.

[confideans]

I was confused because of “will probably have invested”. I thought they will invest additionally in the future with an expectation of IPO. Thank you very much.

[confideans]

Thank you Sensei ~~~ I am ultra super clear now

[confideans]

(ii) Addresses the requests made by the finance director about the initial variables and estimated value of the offer from Honua Co using the real options method;

Q) I could not understand even the question. about the initial variables?? how should I deal with it?? I just realised the value of Jigu project is the given call option value. I understand all figures in the model answer but I could not get a clear picture of it regarding the question whole. Thank you very much. Through of the question, I would like to master a real option question. thank you.

[confideans]

oh Captain my Captain, thank you for your clear explanation !!!!

[confideans]

oh Thank you Captain my Captain

[confideans]

I watched your lecture again and I figured it out. Thank you 🙂

[confideans]

Plus, what is the meaning of outstanding regarding shares?

For example, this is calculated where potential ordinary shares have been outstanding during the period which would cause EPS to fall if exercised.
or the number of shares outstanding

Thank you very much.

[confideans]

ah is this because if the number of shares is fixed, it would be a financial equity wouldn’t it?

[confideans]

Page 137, Example 2, Thank you

[confideans]

Thank you very much

[confideans]

Thank you very much for your clarity

[confideans]

PS,
Model answer is like that

(W8) Government grant
This is a revenue grant. It should be recognised in profit or loss on a systematic basis. The grant is intended to cover training costs over a two year period and so it should be recognised in profit or loss over two years.
Saint should increase its expenses by $2,000 (1/2 × $4,000) and record the balance as deferred income on the SFP.
Dr Admin expenses/retained earnings (W1) $2,000 Cr Current liabilities $2,000

However, I could not understand this model answer.
My understanding is like that
Dr Cash 4000 Cr Deferred income 4000
Dr Deferred income 2000 Cr Income for gov. grant 2000

Could you please help me out?
thank you.

[confideans]

Thank you for your clear and intuitive explanation. Regarding the question, the issue costs would be paid out of available cash reserves.( Then they extra financed more amount for issue costs). How can I interpret the sentence? (the issue costs would be paid out of available cash reserves) Thank you very much

[confideans]

I see so, their amended capital structure proposition refers to the M&M proposition 2.

[confideans]

Thank you very much my hero !!!!

[confideans]

Thank you very much !!! May I ask what is the best way to study for the written questions?

I have watched your lecture twice but I guess I have to do it again.

[confideans]

I sincerely appreciate your clear explanation !!! Thank you again.

[confideans]

Plus

According to the conclusion answer part.

However, Conejo Co needs to be mindful of how it intends to repay the capital amount in five years’ time, the information it will disclose to the capital markets and the impact of any negative restrictive covenants.

Question ) what is the meaning of negative restrictive covenants?

is it more unfavour restrictive covenants?

[confideans]

Thanks John, I studied while listening to a song by Stevie Wonder. I got mixed up. Thank you for your clean explanation !!!

[confideans]

You are the best !!! Thank you !!!

[confideans]

In addition, how does the condition where “with the exception of the bank overdraft, Bento has provided all the financing to Okazu.” affect the “the valuing net asset” or others?

[confideans]

Thank you for your clear answer. Speaking of this question, Sales component units are stated in 000s. Is it ok to assume 000s as million?

Thank you very much ~

[confideans]

I have a revision kit but the version is (For exams in September 2018, December 2018, March 2019 and June 2019). Should I buy new updated ones?

[confideans]

I have a revision kit but the version is (For exams in September 2018, December 2018, March 2019 and June 2019). Should I buy new updated ones?

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