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I got it! If the rate of depreciation is 20%, then the formula would be:
(cost x r) x (1-r)^(N-1)
Where: N is the period for which expense is requried and r is the rate of depreciation.Thanks man really appreciated. But, this will give me the sum of depreciation expense of 5 years if I deduct the result from original cost. I actually need to calculate the depreciation expense for a particular year. Is there a formula with which I can calculate the expense for the 5th period or any other period? thanks.
hi. Where do I check whether I am eligible for Oxford Brookes Degree? When I view my status report in myacca, it says “you have completed the ACCA exam component of OB” under Oxford Brookes Status. what does this mean? Thank you
To regear the beta we have to use the post acquisition gearing i.e. the gearing of the enlarged company. Acquisition of the equity will be financed by debt, but it doesn’t mean equity of the target company will be eliminated. So, for equity you have to use combined value of the equity i.e. $8000 + $5000 and then increase the debt of the combined company by $5000, because the acquisition is financed by debt.
Thank you sir :)… And one more thing. I vaguely remember something about discounts and premiums in Forward contracts. Can you please explain with a tiny example?
Thanks sir it does make sense. So, in case the spot rate on the transaction date is not given, we will compute the lock in rate and then use it to calculate the net amount 🙂
Pardon me sir, yes I made a mistake there. Perhaps because the spot rate and the futures rates are quoted in slightly different ways, I am still finding it hard to understand the logic. Sorry to disturb you sir, I can understand you are busy. But, I heartily appreciate your help. thanks 🙂
Pardon me sir, there is another thing in the same question that confuses me. You said in your lecture, that we should look at the contract currency (in this case Yen), and then we see whether the transaction involves buying or selling the contract currency. If it involves buying the contract currency, then we buy futures now and sell them later. If the transaction involves selling the contract currency, then we sell futures now and buy them later…. In KYT Inc. we have to make a payment in Yen, so the transaction involves buying the contract currency. But, our strategy is to sell futures now and buy them back later. Is it because the prices are quoted in US$? Thank you sir.
Thank you for your input sir, really appreciated :). I checked the answer again. In the Kaplan Exam Kit, the answer does include goodwill. Without the goodwill, the value of the company is $15,096. But, in Kaplan, its $15,266 after adding $170 for goodwill. Perhaps a mistake or an unstated assumption?
<cite>@Gromit said:</cite>
You could look at our tips then our list past exam analysis page (by topic and by exam).Failing that, if you look at the 4 exams from 2010 and 2011 you will get pretty good coverage.
Thank you sooo much dear sir… peace be upon you 🙂
@pauliangenius said:
yes they are pretty reliable. i myself studied the notes and watched the videos and passed p3.
but do bear in mind that you will have to solve the past papers( its a must) otherwise you will turn up at the exam unprepared and may FAIL….So be good and practise. Also whatever models are given in p3 class notes, do read them from the bpp study text( only models) to get better detail and understanding of P3.Thanks for your help mate! I really appreciate it… 🙂