New ACCA Advanced Financial Management (AFM) Lectures for September 2018 exams are now online >>
ACCA P4 Lectures
Please note: Chapter numbers and page numbers in the video lectures sometimes may refer to different numbers in the course notes.
Chapter 7 The Cost of Capital
The Cost of Capital Example 10
Chapter 8 Portfolio Theory
Chapter 9 The Capital Asset Pricing Model
Combining Investments Example 8
Chapter 10 Discounted Cash Flow Techniques
Discounted Cash Flow Techniques
Modified Internal Rate of Return
Multi Period Capital Rationing Example 4
Chapter 11 The Impact of Financing
The Impact of Financing Example 1
The Impact of Financing Example 2
Chapter 12 Share Options and Option Pricing
Share Options and Option Pricing part 1
Share Options and Option Pricing part 2
Chapter 13 Real Options
Chapter 17 Foreign Exchange Risk Management
Chapter 18 Foreign Exchange Risk Management – Options
Foreign Exchange Risk Management Options part 1
Foreign Exchange Risk Management Traded Options part 2
Foreign Exchange Risk Management Options part 3
Chapter 19 Interest Rate Risk Management
Explanation of interest rate risk
Forward Rate Agreement and Interest Rate Guarantees
Introduction to Interest rate futures
Interest rate futures Example 3
Interest rate futures Example 4
Interest rate futures Example 4 continued
Interest rate options (part 1)
Hey Admin,
i am so confident about risk management after goin through ur lectures. i am very much thank ful to u 馃檪
it would be very helpful if a lecture could be published on VALUE AT RISK
In PQ10 the question states that the premium is cents per $, but when I compared my answer to the the one in the notes it was calculated as cents per pounds.
Is this an error in the question or the answer or my own misunderstanding?
@htung00, Its an error in the question – sorry – it should be cents per pound
& remaining chapters at the end of the course notes? Thanks
@thuha, I will – when I have the time! 馃檪
Dear Admin,
Can you upload the lectures for Chapter 21: Swap also? Thanks
Dear everyone,
Please help me. I don’t understand clearly how to calculate Capital Allowance. For a machine’s life cycle is 5 year CA sometimes calculated from year 1 to 5 (total 5 years), while in the other cases, CA calculated from Yr 0 to 5 (total 6 years).
I don’t clearly understand about that. Very appreciated everyone’s help
@annalla, Strictly it depends on what date the machine is purchased.
If it is bought on the last day of a financial year, then the allowances are calculated immediately. If it is bought on the first day of a financial year, then the allowances would not be calculated until the end of the year (that is in one years time).
However, usually in P4 you are not told the date of purchase and so it depends on your assumptions. Provided that you state your assumptions then you will get the marks if you do the right thing based on your assumptions.
Dear John,
Thanks a lot for your help 馃檪
Annalla
the futures contract have been made so easy for me .
thanks open tuition.
However , i cant seem to find currency and interest swaps
can anyone further give me clarification on how to calculate the closing futures price ,if not given .tried it,on one question, using the example give by open tuition on but i got it wrong .instead of using the mid point spot rate ,they used buying rate of the spot to get the basis points .my question is how do we use the rate if its not mid point rate.
really really really thankful to OT team esp the lecturer,
i am worried will we get lectures on all the topics(leaving chapters 1to6) before our december exams? please do confirm it
No, there won’t be new lectures, that’s all there ever was recorded for P4
Best lectures so far.
May you plz consider uploading some mre chapters ie Business . valuation….
where is the business valuation part (lecture video)
@boali345, Sorry but there is no lecture on this yet (but it is covered in the Course Notes that you can download).
can someone help me, I am working through example 2 in chapter 16 Nairobi plc.
Everything makes sense except for the synegistic benefit of 10 P.A. Please can someone explain to me how this is calculated as it appears that this amounts to 6 per annum when looking at the answer.
thanks
Simon
@leechelam, The answer assumes that the synergistic benefit is taxable (at 30%).
So it gives an extra 7 p.a.
(Are you using the current notes? The old notes had a mistake in the answer and had an extra 6 p.a., which was wrong).
@johnmoffat or anyone, Can you please explain this a bit? I know that 7% is the benefit after tax.
Would the first years cash flow be calculated as follows?
(20+8) x 1.07 = 29.96
In the answers it shows as 35 for the first year,
@htung00, Not 7%. The first year is simply 20 + 8 + the extra 7 = 35
@johnmoffat, Oh thanks I misread the Q as 10% pa instead of just 10.
Dear Tutor,
For the practice question 13 – a(ii), Venom, I don’t understand how the solution come out “the new term would be for Venom to be received 13% and pay L +3/4%?
Please help.
Thank you very much
The lectures are really helpful. Thanks a lot.
I Already pass F9.
But john’s explanation make a huge difference.
i do have other paid lectures online and at times attend Acca lectures at the UNI but no one make topics clearer like john, so please
consider having lectures on all topics. Am desperate always to hear john stripping down tricky topics.
Bravo Opentution
where is the other lectures(from 1 to 6???)
@nahidhunter, The introduction lecture explains that these are for you to read yourself.
hy hw can i download d video lectures and watch offline? pls assist
Lectures are ONLINE only
not for downloading, that’s the only way to make this site FREE
@rolandocc
Thank you for the help.
Hi ,
Does anyone knows, for chapter 17, Valuation of acquisitions and mergers. In example 2, (Nairobi Plc)how do I calculate the combined cahflows inclusive of the synergistic benefit ?
@danish2, Hi, (nairobi+delhi+synergistic benefit-interest net of tax)
Therefore for year 1 (20+8+10-(80*8%*0.7)=34 rounded
Hope this helps 馃檪
Dear Lecturer.
In appraisal for project which have late payment to vendor (late payment for equipment), it can be considered as a source of finance and include in cost of debt’s calculation?
@megavain, There is an argument as to whether short term finance such as interest bearing overdrafts should be added to the calculation of gearing. Normally the long term cost of debt is weighted agains the current market value of long term debt to arrive to WACC, therefore I think short term finance such as the one provided by a vendor should be ignored. As always state your assumptions clearly in the exam. Good luck