Forum Replies Created
- Posts
sir what about equity do we record this also in bv or mv?
if bv ,why do we use mv of equity while calculating gearing.if not in bv ,why is it not?i know these are silly dumb doubts,but brain is messed up,sorry and thankss
3. i watched question solvingin youtube of a reputed teacher,in that he finds mv using figures of 20×6 but doesnt deduct exceptional items while calculating PAT,why?
in exam kit,they have used extimated earnings of 20×7 to find mv.
which is the correct method?is both method correct? if yes,why didnt we duduct exceptional items for yr 20×6?i.e why tax rate of foreign country and not home country is used to find subsidised loan tax sheield ?in all other calculation we use parent/home countrys tax rate right?
its surprising u r taking so long to reply, Are you fine sir?i hope nothing has happend to you :)take care sir
ok wait i thot when discounting subsidised loan we can use rf rate or cost of debt for subsidiary but now i came across a question where it used cost of debt of normal loan for discounting subsidised loan.
so no matter what type of loan it is (normal or subsidised) i can use cost of debt of subsidised loan or cost of debt of normal loan or risk free rate. Am i correct?
can i use different rates to discount for normal loan and subidised loan?or does it need to b same ?
ok got it.
but here in tippletine co question they have not added back tax allowable depreciation.
shouldnt we be adding it back adter deducting tax?or is this the special case where we dont have to add back?and can i directly calculate it using my calculter and use it in cbe patform without any workings of it?
i didnt get u sir !
kaplan is given this reason
Using the ‘lowest common multiple’ approach (12 years) is an alternative to simple
replacement decisionsno i have nt watched your videos sir but i had taken coaching for it outside.
why annualising of discount isnt needed for this type of question?then for wat questions should we annualise?
sir while finding cost of dicount , we should annulise the discount right? since interest is annualised rate? the formula fr annualising discount 100/100-d^(365/t)-1
ohhh thank you sir!!! :))
no sir i havent watched your lectures,i had coaching in my college and now i dont have time to watch everything 🙂
okay! in simple words
you are saying while calculating %cost of early settlement discounts we need to annualise the discount only if all the customers are taking the dicounts ??ryt??and v need not annualise the discount if everyone isnt taking the discountits in past exam dec 10
WQZ Co could introduce an early settlement discount of 1% for customers who pay within
30 days and at the same time, through improved operational procedures, maintain a
maximum average payment period of 60 days for credit customers who do not take the
discount. It is expected that 25% of credit customers will take the discount if it were
offered.
It is expected that administration and operating cost savings of $753,000 per year will be
made after improving operational procedures and introducing the early settlement
discount.
Credit sales of WQZ Co are currently $87.6 million per year and trade receivables are
currently $18 million. Credit sales are not expected to change as a result of the changes in
receivables management. The company has a cost of short?term finance of 5.5% per year.required (c) Calculate and comment on whether the proposed changes in receivables
management will be acceptable. Assuming that only 25% of customers take the
early settlement discount, what is the maximum early settlement discount that
could be offered?hello sir!
i calculated annuity of tad from 5-10 yrs as
(112000)*(6af-4af)
112000*(5.889-3.102)=312144—–but the kit answer is 312282
so i wanna know is the method ryt?
n is it ok if theres slight difference in answers??i dint understand the last part how n why did they do this? (see below)
NPV = (2,129,000 x 0.593) – 139,000 = 1,262,497 – 139,000 = $1,123,497.but this question is there in kaplan exam kit charm ink 251
srry sir..but i didnt understand..can u make it more clear sir?
the production (units) for yr 1 -150 .yr 2-70 , yr 3 and 4 -60
fixed cost is $4 per game
therefore fc must be 150*4=600 for yr1 and year 2- 70*4=280 n yr 3&4- 60*4=240 ryt??
but they have taken 600 as fc for all 4 years..why??but sir, part a is discounted using 6% ryt? but part b requires us to dicount using wacc 11%.
hows that possible to add npv calculated with 6% df to npv of 11%?
