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ACCA F9 lectures ACCA F9 notes
October 3, 2016 at 9:26 am
Could you please explain why the reference dividend doesn’t change in next year (till 225) while we assume that the dividend growth rate of 4% in unchange and ordinary dividend expected to increase by 4% per year? what does it means? I thing both reference and ordinary dividend will increase by 4%.
John Moffat says
October 3, 2016 at 9:48 am
Preference shares always have a fixed dividend.
(Some investors prefer this because although the dividend will not increase if the company does well, they are guaranteed the fixed dividend each year (provided the company does not go bankrupt) because they get their dividend first. Ordinary shareholders can only get a dividend if there is anything left after paying the preference dividends.)
May 31, 2016 at 11:06 am
Loving these lectures, so much better than Kaplan, BPP, First Intuition…
I am sitting f9 in June…
May 31, 2016 at 11:49 am
Thank you very much for your comment 🙂
(and I hope the exam goes well for you)
December 1, 2015 at 9:18 pm
While calculating the earnings per share, shouldn’t we also be subtracting the interest that has to be paid on the existing and new loan notes since just as preference shares its virtually certain that a fixed amount of interest has to be paid on the loan notes?
December 2, 2015 at 7:17 am
The current profit is already after the current interest.
The extra interest is dealt with in calculating the new EPS.
December 2, 2015 at 3:59 pm
Right John! Just missed that! Thanks! 🙂
December 2, 2015 at 5:24 pm
You are welcome 🙂
November 11, 2014 at 1:02 pm
Sir, I just don’t understand one thing. While calculating the Financial Gearing for the second year we have used the figures 27500+1820 for equity. When Equity is Ordinary shares + other reserves, shouldn’t the retained earnings increase by $2463 (PAT 4508- Pref Dividend 225 – Current dividend 1820) and should the figure of equity for second year be 27500 + 2463?
November 11, 2014 at 1:25 pm
I have just watched that part of my lecture again – the retained earnings do increase by 2463, and I do have the figure for equity as being 27500 + 2463 !! 🙂
November 11, 2014 at 1:33 pm
Thank you so much sir! You are great. Find this subject so much easier and interesting all because of you 😀
August 29, 2015 at 1:12 pm
Dear sir how you calculted tax in next year currnt year tax is 1950 how the figure 1932 come
August 29, 2015 at 4:26 pm
I assume that you have download the question (the link is further down this page), in which case you will see that the tax rate is 30%. So if the profit before tax next year is 6440, then the tax is 30% x 6440 = 1932.
October 31, 2014 at 2:05 pm
sir can give me link to download this pilot paper
I can’t find it on acca web
October 31, 2014 at 3:32 pm
Here is the Pilot Paper for this question:)
November 1, 2014 at 5:59 am
Sir it says
this document can’t be opened because it’s damaged or corrupted 🙁
November 1, 2014 at 10:10 am
It opens fine for me. It must be something at your end.
October 28, 2014 at 4:24 am
anyone can give me link to download the pilot paper from acca website
I don’t know which year it was
August 20, 2014 at 4:14 pm
Dear John, good lectures here. pls I do not understand your calculation of Ord. dividend where you did: 5000x$0.35x$1.04 = 1820. I want to know hw you got 0.35 and 1.04 Tnx.
August 20, 2014 at 4:34 pm
From the question, there are 5,000 ordinary shares, the current dividend is $0.35 per share, and the dividend is growing at 4%.
So the total dividend is going to be 5,000 x $0.35 x 1.04 (the 1.04 being to add on 4%).
Hope that is clear.
August 21, 2014 at 2:37 am
Yes much clearer now. Tnx a lot !
August 21, 2014 at 6:10 am
June 5, 2014 at 9:35 am
I am confused for post-year effect for gearing ratio:
5000+2500+10000* / 27500+2463 = 58.4%
*I am confused for 10000, why you added this?
June 5, 2014 at 6:39 pm
The first line of the question says that the company is planning on spending 10M and that it will be raised by issued loan notes.
So…..the total debt will increase.
May 25, 2014 at 1:32 pm
How do I know when to do Debt/Equity with oppose to Debt/Equity+Debt??
Your help would be much appreciated.
May 25, 2014 at 1:38 pm
Almost always the examiner defines it in the question.
If he doesn’t then you can do it either way – they give different answers but you would get full marks for either (provided you interpret the answer correctly).
May 1, 2014 at 9:34 pm
Sir in earnings per share u wrote 9% of 5000 which gives 450 instead of 9% of 2500 which gives 225
May 1, 2014 at 10:03 pm
February 7, 2014 at 3:15 pm
I have seen were the exam format for F9 as changed for 2014.The exam it seems will now have a multiple choice section for 40 marks.The current lectures and notes for F9 is structured to meet this component of the exam.Thank you for your previous quick and clear responses.Thanks for the good lectures.
February 7, 2014 at 3:20 pm
The exam format does not change until the December exams.
The June exams will remain in the current format.
The syllabus is not changing for either June or December and so all the lectures and our notes are still valid.
Obviously after the June exams, we will introduce questions covering both sections of the new format exam.
February 5, 2014 at 8:39 pm
It seems that ACCA has removed all Pilot paper now, cannot find it any more.
February 5, 2014 at 8:43 pm
You are correct.
They only have a pilot paper when the whole syllabus changes, but now they have plenty of real exams since the syllabus changed.
We cannot post the pilot paper questions on here for copyright reasons. If you want to see the question then it will mean finding it in one of the Revision/Exam Kits from one of the approved publishers.
April 29, 2014 at 3:46 pm
Here is the Pilot Paper for this question:)
May 27, 2014 at 7:08 pm
thank you for the pilot paper
October 19, 2014 at 4:11 pm
October 29, 2013 at 6:15 am
Sir if we consider preference shares as effectively long term liabillity and dividend paid on it as interest then should we not on that assumption include preference dividend in the interest cover ratias part of interest?
October 29, 2013 at 7:18 am
No. The reason is that interest has to be paid (and if the company cannot pay it then they could end up being forced into liquidation). Preference dividend has to be paid provided there is enough profit, but if there is not enough then it does not have to be paid so the company is not forced into liquidation.
October 29, 2013 at 7:33 am
Oh makes sense now. Thank you very much for the quick response. ????
October 29, 2013 at 8:18 am
September 13, 2013 at 6:06 am
Wow! Very nice lecture! I find the question is fairly (EASY) to be an exam standard part of a question! I wonder why nobody does it!
February 18, 2013 at 6:46 pm
please can someone tell me which pilot is it refer to? the year and the question number,and where to get it
admin please could you help me?
March 9, 2013 at 2:02 pm
the pilot paper which discussed here.
May 28, 2013 at 10:01 am
Thank you for sharing the link! …saved me from so much trouble!
September 13, 2013 at 4:55 am
Thank you for the link! 🙂
November 28, 2013 at 6:42 pm
Thank you for the link 🙂
December 1, 2012 at 12:32 pm
Dear John! Have a question that doesn’t relate to above pilot question but to Paper Dec 2009 Q3 A on theoretical ex rights price after the rights issue. In the answer, 50% of equity 6.5MN EURos has been divided by 1.3 to arrive to USD. Is this known mistake in the answer or I am reading something wrong? Thank you.
December 1, 2012 at 2:14 pm
@vesna, The spot rate is given as EUR/$ 1.3, which means that 1.3 Euros = 1 $
So to convert 6.5M euros you need to divide by 1.3 to get $’s
December 2, 2012 at 5:26 am
@johnmoffat, Thank you.
June 7, 2012 at 5:54 pm
Please note that the profit before tax is supposed to 6940 and profit for the period being 4858 and not 4508… and thanks.
June 12, 2012 at 3:46 pm
@sandycmkm, the suggested answer has the same figures as in the lecture, I don’t follow your point
June 6, 2012 at 12:50 am
Droxfol co. pilot Q1 I think
April 8, 2012 at 4:03 am
Preference share interest should be 0.09 x 2500 = 225 right?
June 12, 2012 at 3:47 pm
@bathape_r, Yes, but the correct term would be pref share dividends
March 13, 2012 at 2:59 pm
which year pilot paper is discussed in this lecture?
November 28, 2011 at 6:05 pm
This is a brilliant example to reflect exam standard.If we can have bit more of these, that will be very much grateful.
Tutor is absolutely awesome.Probably the best financial management lecturer to me.
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