OpenTuition.com Free resources for accountancy students
Free ACCA lectures and course notes | ACCA AAT FIA resources and forums | ACCA Global Community
Hi Tutor ,
In the example for debt/equity ratio 0.4 you said debt is 40% and equity is 60% , so if the D/E =0.6 does that imply the debt is 60% and equity 40%? and if D/E 0.25 – debt is 25% and equity 75%?
I don’t think that I did say that, and I certainly used the correct figures in the example.
A debt/equity ratio of 0.4 does not mean that debt is 40% and equity 60% (if that was the case, the ratio would be 40/60!)
Hi Tutor ,
My apologies in advance for asking a silly question.For a given gearing ratio ( Vd/Ve ) = 0.4 , how did you work out the Vd as 40% and Ve as 100% ?
sir is there a lecture on NPV in foreign currency ???
No – there is not a specific lecture.
However the only extra technique needed is to be able to forecast future exchange rates using the purchasing power parity formula. This was covered in F9 and there is a chapter revising it in the P4 course notes.
Otherwise it is a question is setting up the foreign cash flows in exactly the normal way, but in the foreign currency. Then converting the foreign currency to the home currency using the forecast exchange rates. Then adding any other cash flows that there may be in the home currency, and then discounting.
It can get very messy, but the problem is more just the arithmetic involved then any extra special technique.
thank you SIR
The typing mistake which is mentioned in the lecture in the formula for the cost of equity is not rectified in the course notes.
You put my lecturers to shame with your skill at explaining things. I think it’s because you undoubtedly understand (extremely well) what it is you are teaching.Thanks so much
I am already looking forward to the December 2012 Diet with great hope. Thanks for opentuition.com
You must be logged in to post a comment.
F5 Dec 2013 Exam was... Post comments
F6 Dec 2013 Exam was... Post comments
F7 Dec 2013 Exam was... Post comments
F8 Dec 2013 Exam was... Post comments
P4 Dec 2013 Exam was... Post comments
P5 Dec 2013 Exam was... Post comments
P7 Dec 2013 Exam was... Post comments
FIA MA1 exam was...
FIA FA2 exam was...
FIA MA2 exam was...
FIA FTX Exam was...
FIA FFM exam was...
Return to top of page
Copyright © 2013 · Privacy and Cookies · Advertising · Contact us · Sitemap · Log in