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ACCA P4 Revision lectures Download ACCA P4 exam
March 6, 2018 at 8:02 pm
For part of question (Lumi Co, a leisure travel company, has offered $50 million to buy the project from Fugae Co at the start of the second year. Fugae Co is considering whether having this choice would add to the value of the project.)
Why we did not use BSOP model?
John Moffat says
March 7, 2018 at 6:41 am
Partly because it was not asked for – it asked for the value with and without the project – and also because there is not enough information (we would need the standard deviation etc..)
March 7, 2018 at 8:07 am
Thank you so much
March 7, 2018 at 9:59 am
You are welcome 🙂
February 24, 2018 at 2:12 pm
I will defenately fail the exam with such Q1 🙂
February 24, 2018 at 3:47 pm
It is a hard question, but there are aunt reasonably easy marks within it (provided that your workings are clear enough for the examiner to be able to follow them).
August 18, 2016 at 1:49 am
Thanks a lot for the clinical dissection of this question. When I read the question, I got angry with the examiner. How many years did it take him to concoct this onerous question? And how on earth did he expect anybody to reason properly faced with this question under exam conditions?
A financial manager may be given a week or two to advise the board on a labyrinthine question of this nature. I sympathise with all the candidates who sat for this paper and hope the same fate does not befall me in September 2016.
This is the first revision question I looked at. But for the methodical way you dealt with it, I would have postponed sitting for this paper till December. Thank you very much.
It was a one for all revision question for most of what I have learnt so far. It also taught me to open up my mind to all perspectives of P4 while attempting any question.
August 18, 2016 at 5:44 am
Thanks a lot for the comment 🙂
May 23, 2016 at 2:14 pm
Many many thanks for the videos that help me a lot to understand the technique.
May 23, 2016 at 5:45 pm
Thank you for the comment 🙂
December 2, 2015 at 1:25 pm
Isn’t the offer from Lumi a kind of real option?
December 2, 2015 at 2:25 pm
It is indeed an option, and it is worth mentioning in the report (as does the examiner). However we can’t use BlackScholes to value it because we do not have the necessary information.
December 2, 2015 at 6:17 pm
Your lectures are a treasure!
December 3, 2015 at 7:03 am
Thank you 🙂
November 22, 2015 at 4:31 pm
Due to sit the Dec 15 exam in a couple of weeks for the first time and just looked at this question and nearly fell over with panic!! Then I’ve listened to your lecture. The methodical way you have gone through everything has really helped and I can understand that this was a particularly tough question. Hopefully, you taught me not to panic and to just work through it as much as you can getting as many marks as possible.
Your help is invaluable. Thank you so much.
November 22, 2015 at 4:40 pm
Thank you very much for your comment – I am really please that the lecture has helped you 🙂
August 13, 2015 at 8:49 pm
Wow what a marathon question !!! how could it be completed in 90 mins ? only question is in your opinion is the report offered by examiner very brief ??
May 23, 2015 at 6:13 pm
May 14, 2015 at 8:16 pm
Great lecture, thank you!
April 24, 2015 at 6:18 pm
Very informative video Mr Moffat. Thanks a lot for taking the time out to work through the question…
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