[Neil]

Thanks so much to everyone at OT, amazing help through all my exams, I’m so happy I stumbled across your site. Thought I’d failed this one, passed with 87%, amazing, all finished.
Chris Barlow, you are my absolute hero!

[Neil]

I got $466 npv, treated subsidy as after tax inflow. Sensitivity was 10%, npv/pv of contribution. I rounded numbers $000. Had loss in first year so tax return rather than payment.
CAPM was 17% & 19%, had to degear proxy for 0.95 & regear for us about 2.4 I think then project specific cost of capital

[Neil]

From memory it said that the closing inventory from the previous year had been overstated by $0.7m. This means it effects the previous years retained earnings & the current years expense as closing inventory of one year becomes the opening inventory of the next

[Neil]

Yes I meant 2000 investment income not 200. I think the overstatement of inventory will effect previous years closing inventory and increase the expense through the soce and reduce retained earnings b/f as 700 too much had been deducted. It will become opening inventory of current year so decrease the expense of the current year right?
I think soce was add the rights issue through share cap & share premium, deduct loss from retained earnings & take the 3000 dividend off too instead of through admin expenses as well as the prior year inventory error

[Neil]

Disposal of sub gain of $850k, goodwill was 1300 impaired to 650.
P&L loss of about $3.04m. Deduct overstated inventory from cos, expense brand name promotion 1300, amortise patent 100, gain on IP 200 in investment income, tax refund 560 & provision was 1500 to admin expenses. 4500 already accounted in previous year so Dr expense Cr provision. Actual provision 6000, so Cr cash 6000 already recorded, dr expense 1500 & dr provision 4500 as not needed anymore.
Section a & b difficult

[Author]

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