I don’t understand that in Q3, with the investment net asset will be 520,000. I thought the division has enough cash and assumed net asset will not change. So is it that my assumption is unreal and capex is made from somewhere else like head office?

Thank you so much, Mr. Moffat! I have watched each and every lecture of yours, and solved all practise questions. As a result, I have easily passed the exam. Thank you very much for such an opportunity! Your teaching method is brilliant! Now I finally understand the essence. Thank you! Stay safe and healthy!

Hi I also selected 14% due to rounding. I thought we always rounded up? Maybe it should say to the nearest cent, that would help with some clarification.

mannannagpal says

Hi sir! How is the target rate of return the same as the cost of finance? (in reference to the last question of this practice test)

Tish-Simons says

please how can I view for the solution of Section B of the revision exam?

shivalak says

Hi John,

I don’t understand that in Q3, with the investment net asset will be 520,000.

I thought the division has enough cash and assumed net asset will not change.

So is it that my assumption is unreal and capex is made from somewhere else like head office?

Many thanks.

John Moffat says

Yes. Here we have to assume that the finance came from head office.

Sahaijsjsjaioafnn says

I got 100%.

Wedone says

Thank you so much, Mr. Moffat!

I have watched each and every lecture of yours, and solved all practise questions. As a result, I have easily passed the exam.

Thank you very much for such an opportunity! Your teaching method is brilliant! Now I finally understand the essence.

Thank you!

Stay safe and healthy!

John Moffat says

That is great news – many congratulations 馃檪

kingslanre says

Hi John,

I think there is a problem with the second answer of question 3. It should be 13.88% which made me approximate to 14% rather than choosing 13.5%.

Thanks.

John Moffat says

The answer is correct – the choice is 13.85% (not 13.5%) and 13.88 is closer to 13.85 than to 14

KittyKatt says

Hi I also selected 14% due to rounding. I thought we always rounded up? Maybe it should say to the nearest cent, that would help with some clarification.