[StefanosG]

Did anyone have a question where it asked for the total value of one company based on the P/E of the second?

Market value of second company 3875.00
Eps 0.75

First company 100 m 0.50 nominal value shares with profits of 55 m and dividends of 20 million.

I was quite stuck at that question not sure about the answer.

[StefanosG]

Hello,

So if we already bought the building and the invoice was issued later then we could capitalize the cost correct? Since we now have a building to attribute the capitalization cost.

Thank you.

[StefanosG]

Hello did anyone get the government grant of 60.000 question for training staff that the grant was already included in other income? What did you debit and credit?

[StefanosG]

Hello,

So the income from the divident is not adjusted in the retained earnings column of the parent as received nor deducted from the subsidiary ?

Thank you.

[StefanosG]

Thank you Chris . Your lectures are amazing!

[StefanosG]

Thank you,

I am still a bit confused with the finance income.

Ok so first step we eliminate the intragroup transaction of the finance income and the finance receivable.

Then why do we add it back to the calculation of the parents retained earnings if it is eliminated? Income from subsidiary cannot be included in the parents retained earnings just like PUP right? Or am i loosing something?

Thank you.

[StefanosG]

DATE NARRATIVE SHARES TIME B F W/ AV
1/1/2011 2.000.000,00 04/12 3,10/3X21/20 723.333,00
30/4/2011 F MP 2.270.000 3/12 3,10/3 X21/20 615.738,00
31/7/2011 RT 1/10 2.497.000 2/12 21/20
436.975,00
30/9/2011 BONUS 1/20 2.621.850 3/12 655.462,00
2.431.508,00

Hello sir,

I am still a bit confused with the order we calculate the bonus fraction the rights issue fraction the months and the share price.

I understand the layout in this table but i am afraid i will get mixed up if the order is different.
example if the bonus issue was applied after the rights issue.

So to conclude:

1)We don’t calculate a bonus fraction for the rights issue even if the bonus fraction was applied after the rights issue ?

2)Do i always multiply the rights fraction with only the bonus fraction in this example 21/20?

Thank you.

[StefanosG]

Thank you for your swift response.

But i haven’t understand why we deduct the impairment in one calculation and on the first one we don’t. Is there something that i am missing ? Because the two exercises state that there is an impairment of 500.000.

Maybe i confused you with the “no impairment on goodwill acquisition” that was my note not from the exercise. Thank you.

[StefanosG]

Thank you sir!

[StefanosG]

Dear tutor ,

I have the same exact question.

Thank you.

[StefanosG]

Thank you for the swift response!

[StefanosG]

Dear tutor,

I have a question concerning this question. Don’t we have to deduct the 46000 of revenue from Basil Co 955.000 total revenue as this is an intragroup transaction?

Thahk you

[StefanosG]

It was very clear! Thank you.

[StefanosG]

Thank you!

[StefanosG]

Thank you !

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