The calculation of the cost of preference shares is exactly the same as that if ordinary shares. As you will know from earlier exams, they carry a fixed dividend that therefore the rate of growth (g) is zero. If you watch all of the lectures you will find that preference shares are dealt with anyway.
The lectures are a complete free course for Paper F9 and cover everything needed to be able to pass the exam well.
sir what is prarity value and conversion premium. F9 notes that i had downloaded earlier had it in question 1 ( chapter 12 -source of financeDebt). Is it not in syllabus any more?
Hi, Have you updated this lecture? Earlier this week I’m sure there was not a lecture for Chapter 14, and Chapter 12 wasn’t one condensed lecture. Furthermore, I have reviewed the answers to Example 1 Chapter 12 and they do not answer b)i market value or b)ii conversion premium. Am I looking in the wrong place? Thanks
The lectures have all been replaced (to improve the sound and picture quality). At the same time the lecture notes have been improved. You need to download the current set of free lecture notes.
Sir is this lecture enough for the exam? BPP material contains other topics like Conventional bonds, deep discount bonds and zero coupon bonds.
Yes – it is enough. Our lectures cover everything needed to be able to pass the exam well.
Sir,
In the lecture there is nothing about preference shares. Does this mean that what you’ve written in the notes is all that we need for the exam?
The calculation of the cost of preference shares is exactly the same as that if ordinary shares. As you will know from earlier exams, they carry a fixed dividend that therefore the rate of growth (g) is zero.
If you watch all of the lectures you will find that preference shares are dealt with anyway.
The lectures are a complete free course for Paper F9 and cover everything needed to be able to pass the exam well.
Really enjoyed this back-to-basics lecture, and found it very useful! Thank you Mr M 🙂
Thank you for your comment 🙂
sir what is prarity value and conversion premium. F9 notes that i had downloaded earlier had it in question 1 ( chapter 12 -source of financeDebt). Is it not in syllabus any more?
It is still in the syllabus, and it is still in the notes. I reorganised the notes (and lectures) a bit to make them follow more logically.
Hi, Have you updated this lecture? Earlier this week I’m sure there was not a lecture for Chapter 14, and Chapter 12 wasn’t one condensed lecture. Furthermore, I have reviewed the answers to Example 1 Chapter 12 and they do not answer b)i market value or b)ii conversion premium. Am I looking in the wrong place? Thanks
The lectures have all been replaced (to improve the sound and picture quality). At the same time the lecture notes have been improved. You need to download the current set of free lecture notes.