[adam.sheehan]

Hi John / Tutor, In this question it says that Ndedge (Department B) will retain the 7 unsecured bond.
Why is this not included in the valuation for T0 free cashflow.

I am using the free cashflow to the firm approach to value department B

I adjusted PBITD to $13.46m
I have included the TAD of $3.93m

The solution dose not include a finance cost of $2.8m (Interest on the bond of 7% by $40m) to arrive at the PBT why is that?

Thanks,
Adam

[adam.sheehan]

Pass with 74%

[adam.sheehan]

Hi YK2017 – get the BPP revision text book. AA is about learning to answer the questions allot more than learning the content. There is a very particular way to identify the issues and answer the questions. Also note the part B’s and C’s of the risk and control question are important marks.

For the part Bs and Cs open a word document type out each question and a solution using a mix of the solution in the book and your own words then spend an hour each day learning these off. – also a great way of learning the theory in a targeted manner

For the audit risk, control and substantive procedures look at the solutions and how they are answered very very repetitive. Apply the same approach just practice practice practice.

Short questions I only looked at in the last 2 weeks. You need to aim to pass the paper in section B which is very doable the short questions I often found a write off.

All in all I think this paper is very easy you just need to put in the time. Best of luck!

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