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OpenTuition | ACCA | CIMA
Free ACCA and CIMA on line courses | Free ACCA, CIMA, FIA Notes, Lectures, Tests and Forums
Sir, in example 12 why do we take into account the interest for the year 2007? Is interest always paid at the year end?
Good day.
will you please explain how do we got to 3.605 discounted amount in Example 10
It is the 5 year annuity factor at 12%, read from the tables provided in the exam.
(Have you watched the earlier lectures on how to use the tables?)
Hi, Sir can you please explain why we haven’t calculated the total debt value in Example 08 & 09. Calculation showing the total value of Debt ? i.e for P total value is $ 625,000 (5,000*125)
Is the answer is complete with giving value of Nominal $ 100 debt only ?
Unless the question specifies different you can give the answer as the MV per unit or as the total capitalisation. (Section A and B questions will specify which)
Example 12, Convertible debt, I believe there is a calculation error, i.e 8 x 2.487=18.90, should be 19.896
Nina
Yes – it is an error 馃檨
I must re-record the lecture.
Hi, can you please tell there are some differences between Loan note and debenture?
They are the same – different names for the same thing 馃檪
ok thanks 馃檪
Hi,
I got quite confused that, in the question the debentures are redeemed at par(I think that is $100), but in the working it is calculated with the expected share value (which is $110.23).
The question says that the debentures are convertible to 20 shares. Debenture holders will currently be expecting to convert because they are expecting the value of 20 shares to be more than par/nominal (which the question says is $100). So the MV of the debentures will be as per the lecture. (I assume that you have downloaded the free course notes?)
Oh I think I understand now. Thank you, sir!
You are welcome 馃檪
Sorry john I got 19.90 for the interest 1-3 discounted at the present value is that correct? Thank you
You right. It was small error.