[cafei]

Passed 59%!!!! ACCA affiliate!!!! hooray!!!!

[cafei]

@Richard
This is exactly what I got. What did you get for combined company’s value then?

[cafei]

@lee
it should be a put option

[cafei]

@Izabela
do we calculate the benefit of dtr for 5%? As the parent co has lower tax rate. Shouldn’t we not take the 5%?

[cafei]

Q1: I got NPV +$12m, put option
In Q1, do you guys include the $200 as the income for the Parent company as well? Since it’s intra activities.
What about the tax allowable depreciation? 10% every yr (st line) so tax saving is MP1250x10% x 25% tax rate=MP31.25 per year and last yr need to consider the MP500 sold and claimed the remaining tax allowable depn, am I correct?

Q3: WACC 9%
In Q3, part a), how do you guys calculate the value created?
I used the whole combined company value x(1+g) ^4 then use this to calculate using dividend growth model FCF x(1+g) / r-g, r=WACC=9%. I also added the PV of synergy benefits to the value. Then I use the value of total co minus those two individual companies.

Do you guys remember what number you came up with?

Q2: got tricked… I thought the question mentioned basis risk now is 0… so i ignored the basis risk calculations 🙁

[cafei]

hi everyone,
please remember to fill out the survey from ACCA about this exam . (ACCA usually send the evaluation out after the exam period through email.) Please write all the comments that you posted in this forum into the ACCA evaluation.
They may bell the curve.. or at least they may try to make the Dec 2013 paper easier… 🙁

[cafei]

i am a straight passer for all other paper too. I failed P4 once in last Dec. This is my 2nd time… still…
the stuff is not that hard.. if I have at least one more hr to complete this.

[cafei]

I bought the last yr textbook… Can anyone using BPP textbook share Islamic finance that new chapter to me? I don’t want to buy another textbook again… 🙁

[cafei]

didn’t have enough time to finish all Questions.. screw up my last exam 🙁

[Author]

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