[crapants]

Passed with 65% and am delighted
Thanks open tuition!
I have recommended OT to a colleague who’s starting her ACCA

[crapants]

@junaid I was running out of time and knew I didn’t have time to calculate the share option so just ignored it.

Not great but it meant I managed to finish my WACC calculation.
Also I cannot remember if I used market or book value for the debt and equity.

My brain was pretty done by that point. Fingers crossed for a pass.

[crapants]

@junaid98 I think I am confusing the matter.
There was no tad, as you say it was a not for profit organisation.

But the way I read the question was that the value on disposal of the vehicle, in year 4, would be equal to the depreciated value at this point.
I am now doubting my reading of the question was correct.

I did get a wacc question but had left little time for it and rushed through.
I managed to work through to get an answer that was around 13%
I’m just hoping to pick up some marks on the second part of section c

[crapants]

Also, @junaid98 *I think* that you should only be marked down once for an incorrect calculation.
So any comments and further calculations gain marks if they are correct but based on an incorrect calculation.

Well I certainly hope so…

[crapants]

@junaid98 my reading of the question was that they said the residual value was equal to the written down value in year 4
Though I am now not sure, and very much could be wrong.
To be clear I ignored the depreciation for the cash flows and only used the reducing balance to calculate the value in year 4

[crapants]

There are no silly questions!

My approach was the same as you that without TAD it was not a relevant cash flow.

Though I did use the depreciation to calculate the vehicles residual value at the end to year 4.
20% reducing balance and $122,880 written down value. I think the information advised that the WDV was the residual value

I deducted the residual value from the out going cash flows in year 4 before discounting back to get the PV and NPV.

From memory, my buy calculation was around 349k vs around 353k lease (same lease as Junaid’s earlier post)

[crapants]

Thanks Robert, maybe I didn’t depreciate the vehicles enough to get the residual value on disposal

[crapants]

From memory I had the same or very similar lease for AgeAid but my purchase cost was something around 5k less than the lease cost. (Outlay + maintenance + other costs – gain on disposal)

In the end, as is the case with me, section c part 2 is always rushed. Which was the WACC
I managed to get a WACC answer off but sure it’s not right.

Was one of the preference shares or loan notes where convertible?
I didn’t have time to look into this and focused with having al least a resemblance of a full calculation.

I am assuming that if there was convertible debt/loan notes that it would lower the cost of debt and the WACC

[crapants]

I had the same section C,
Did you get that AgeAid purchase PV was cheaper? I did but the the next question seemed to imply lease was cheaper
The exam was okay I didn’t feel completely lost at any point

[crapants]

My section C (morning sitting) was disposal & ratios then single entity SoFP. I messed up the gain/loss on disposal by deducting the NCI. A silly mistake no doubt.

I’ll echo Fruzsik, 12 marks for the comparability feels like there was more to say that I didn’t…

To radeksado, there was one section B question on agriculture/biological assets that I remember, involving sheep, wool and cardigans.

[Author]

Posts