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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › Havoc Co.
Sir in part B of this question while calculating the excess earnings the BPP says that we use average the tangible assets but in mark scheme they used average capital employed and substracted the liabilities..arent these 2 different things and which method should be followed?
this is ques no 2 from june 2013
also sir in part c (ii) of this question…
pls let me know why is this way of calculation wrong?
Cash offer – 1.33
Hav’s share – 9.24
less 2 strand co ‘s share (4.76 x 2) =9.52
PREMIUM= 1.05
% premium = 1.05/4.76 x 100 = 22%
I am away from home at the moment and do not have the BPP Revision Kit with me.
I will be home on Thursday, so please ask again then and I will answer.