[earphonelady]

Sir, Thank you so much.

[earphonelady]

Dear Sir,

The Historical cost’s profit is overstated so reflect to the Capital employed RE should be also overstated?

I can’t understand on the correct answer of No.2.

Thank you Sir.

[earphonelady]

Thanks Sir.
Paul plans to buy a holiday villa in five years’ time for cash. He estimates the cost will be $1.5m. He plans to set aside the same amount of funds each year for five years, starting immediately and earning a rate of 10% interest per annum compound.
how much does he need to set aside each year?
I got the answer is $359,712.
But the actual answer is 223,381.
I see their answer explain $1.5x DF 0.621= 931,500 then divided by 4.170. Why need to times 0.621 first. I can’t get it Sir.
Thanks in advance Sir.

[earphonelady]

Thank you for all the answer, it is very helpful, however I still can’t get to understand the Q6, Very would appreciate if you Can show the working out calculations. Thank you so much.
Q6
Rho is about to pay a dividend of 18c per share. Dividend are gorwing at the rate of 3% per year and shareholders required return is 15%.

What is the market value per share?

[earphonelady]

Thank you sir!

[earphonelady]

Sir,

Above question ” What is the material X purchases budget for the year?”

The answer is ” Material X purchases budget in (Kg)
= Closing Inventory + production – opening inventory
= (96000/12) + 159000 – 5000
= 162000kg”

But I cannot get the ” 96000 for closing inventory and question also mentions that
Closing inventory of raw material X – One month’s worth of production.

Thanks in advance for the answer.

[earphonelady]

Sir
Thank you so much.

[earphonelady]

Sir,
How do we know we have to use Annuities Table or Present Value Table. I am a bit confuse with like this questions!

Thanks in advance.

[Author]

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