• Skip to primary navigation
  • Skip to main content
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Ask AI
  • Search
  • Register
  • Login
    • BT
    • MA
    • FA
    • LW
    • PM
    • TX-UK
    • FR
    • AA
    • FM
    • SBL
    • SBR
    • AAA
    • AFM
    • APM
    • ATX
    • Dates
    • What is ACCA

20% off ACCA & CIMA Books

OpenTuition recommends the new interactive BPP books for March and June 2025 exams.
Get your discount code >>

ACCA P4 Question 1 December 2014 part 3

VIVA

ACCA P4 Revision lectures Download ACCA P4 exam


Reader Interactions

Comments

  1. joshwest12 says

    August 24, 2022 at 10:17 pm

    There is surely not enough time in Exam conditions/pressure to get all of this working done?

    Log in to Reply
    • John Moffat says

      August 25, 2022 at 8:41 am

      Time pressure is always a problem (although your aim is always to get more than 50%).

      Log in to Reply
  2. shaunak22 says

    February 22, 2022 at 8:06 pm

    SIR LETS SAY WHILE CALCULATING EXPECTED VALUE –

    you showed the probability adn 25(does not grow as expected) 75% (grows as expected) and the split the 75% into 15% & 60%

    but lets say in the exam while calculating the expected value i had shown 25%(not as expected given) 20%(given) and the expected growth (100-25-20)= 55 and the stated it un assumptions would we get full marks

    Log in to Reply
  3. shaunak22 says

    February 22, 2022 at 7:58 pm

    SIR LETS SAY WHILE CALCULATING EXPECTED VALUE –

    you showed the probability adn 25(does not grow as expected) 75% (grows as expected) and the split the 75% into 15% & 60%

    doubt – but lets say in the exam while calculating the expected value i had shown 25%(not as expected given) 20%(given) and the expected growth (100-25-20)= 55 and the stated it un assumptions would we get full marks

    Log in to Reply
  4. rishabbohra98 says

    August 23, 2021 at 1:09 pm

    Wow, was the examiner in his senses when he prepared such an awful question? Completing this question would itself take 2.5hrs easily. Uff..

    Log in to Reply
    • John Moffat says

      August 23, 2021 at 4:30 pm

      Remember that you do not need to have finished the question to get the 50% that you are looking for to pass the exam. Also, now that the exam is computer based the spreadsheet speeds up some of the arithmetic (provided obviously you have practiced using the resources on the ACCA website) 馃檪

      Log in to Reply
  5. sephora1 says

    October 26, 2020 at 2:44 pm

    Sir the total 64471.9 when I am totalling I am getting another figure..

    Log in to Reply
    • John Moffat says

      October 26, 2020 at 5:19 pm

      I don’t know why – I have just checked my addition and it is correct.

      (Even if had been wrong, remember two things – firstly, if you are taking the paper based exam then the marks are for the workings and a wrong totalling would lose at the most just 1/2 a mark. Secondly, if you are taking it as a computer based exam, then the total will be worked out on the spreadsheet and unless you used the wrong formula for adding on the spreadsheet the total would not attract any marks at all 馃檪 )

      Log in to Reply
  6. osamasyed123 says

    December 29, 2019 at 8:19 pm

    Sir what about the c part?

    Log in to Reply
    • John Moffat says

      December 30, 2019 at 7:44 am

      But it is part (c) of the original exam question that most of the lectures are working through!!! (Unless you are looking at the question in one of the Revision Kits and they have amended the parts of the questions).

      Log in to Reply
  7. obalolu says

    November 27, 2019 at 12:44 pm

    I mean if grow then slow down

    Log in to Reply
  8. obalolu says

    November 27, 2019 at 12:43 pm

    Thanks for the great lectures. The way you have gone through the question simplified the techniques to deal with it.
    But sir, the PV for year 3 if slow then slow down(40% of 25991.3) is 10396.52 and not 10364.5. Just an observation

    Log in to Reply
    • John Moffat says

      November 27, 2019 at 2:22 pm

      Thanks for the comment, and thanks for the correction 馃檪

      Log in to Reply
  9. duybachhpvn says

    July 13, 2018 at 5:01 pm

    Thanks John for these lectures on this question. It is such a long question with a lot of techniques. I did correctly for most parts until this expected value section that really threw me off….even tried to calculate standard deviation myself…. Hope that I dont have to see such crazy question in real exam but thank you for your videos. Also I know that I have been asking you a lot of questions about the market value of debt and the cost of debt, the videos on this question really helped me understand that the correct way to calculate cost of debt to company while the examiner assumed an incorrect cost of debt…. Again, thanks for your great help to self learners like us, it was really helpful.

    Log in to Reply
    • John Moffat says

      July 14, 2018 at 8:42 am

      Thank you for your comment 馃檪

      Log in to Reply
  10. lucie13 says

    June 7, 2018 at 2:08 pm

    Thank you very much.

    Log in to Reply
    • John Moffat says

      June 7, 2018 at 4:44 pm

      You are welcome 馃檪

      Log in to Reply
  11. Nassem says

    March 6, 2018 at 8:02 pm

    Dear Sir,

    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?

    Log in to Reply
    • 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..)

      Log in to Reply
      • Nassem says

        March 7, 2018 at 8:07 am

        Thank you so much

      • John Moffat says

        March 7, 2018 at 9:59 am

        You are welcome 馃檪

      • andyjames28 says

        February 29, 2020 at 3:03 pm

        Hi John – appreciate this comment is nearly two years old hopefully you still see this.

        When I tackled this question I got everything right (near enough anyway!) up until the option part where I used the BSOP model. As you say we weren’t provided the standard deviation but in my exam conditions answer I have made one up based on the probabilities.

        I have therefore concluded that the value of the “with” answer is the NPV of the without + the option price.

        Obviously I see I am wrong, but do you think I would have gotten any credit for that in the actual exam?

        Thanks for these videos they are really helpful!

      • John Moffat says

        February 29, 2020 at 3:45 pm

        You would get some marks, but obviously not full marks (provided as always that it is clear to the marker what you were trying to do, from your workings).

  12. Lilit says

    February 24, 2018 at 2:12 pm

    I will defenately fail the exam with such Q1 馃檪

    Log in to Reply
    • John Moffat says

      February 24, 2018 at 3:47 pm

      It is a hard question, but there are are reasonably easy marks within it (provided that your workings are clear enough for the examiner to be able to follow them).

      Log in to Reply
  13. eadinnu says

    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.

    Log in to Reply
    • John Moffat says

      August 18, 2016 at 5:44 am

      Thanks a lot for the comment 馃檪

      Log in to Reply
  14. karmaker says

    May 23, 2016 at 2:14 pm

    Many many thanks for the videos that help me a lot to understand the technique.

    Log in to Reply
    • John Moffat says

      May 23, 2016 at 5:45 pm

      Thank you for the comment 馃檪

      Log in to Reply
  15. olena says

    December 2, 2015 at 1:25 pm

    John,

    Isn’t the offer from Lumi a kind of real option?

    Thank you,

    Olena

    Log in to Reply
    • John Moffat says

      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.

      Log in to Reply
      • olena says

        December 2, 2015 at 6:17 pm

        Thank you!

        Your lectures are a treasure!

      • John Moffat says

        December 3, 2015 at 7:03 am

        Thank you 馃檪

  16. girlfriday says

    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.

    Log in to Reply
    • John Moffat says

      November 22, 2015 at 4:40 pm

      Thank you very much for your comment – I am really please that the lecture has helped you 馃檪

      Log in to Reply
  17. martin says

    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 ??

    Thanks Martin

    Log in to Reply
  18. sogan0 says

    May 23, 2015 at 6:13 pm

    wow

    Log in to Reply
  19. agoldon says

    May 14, 2015 at 8:16 pm

    Great lecture, thank you!

    Log in to Reply
  20. shanearnold says

    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…

    Log in to Reply
Newer Comments »

Leave a Reply Cancel reply

You must be logged in to post a comment.

Copyright © 2025 路 Support 路 Contact 路 Advertising 路 OpenLicense 路 About 路 Sitemap 路 Comments 路 Log in