[elie1lwin]

i got 2 negative npvs too in ques 1. Not sure if its correct because i translate the $ investment for land & buildings & working capital into PP & NR to get Net cash flow & translate it back to $ again. Hope I didnt screw up. I didnt managed to finish the report but finished calculating both Npvs.

By the way, did anyone attempt question 3 its kinda like a reconstruction sum where we have to draw a new SOFP. I was wondering how everyone calculate cost of equity there.

The question give us beta asset, so with that we can get ungeared ke (ie kei) then do we search for geared ke with M&M formula? Or do we use kei in WACC formula?

Thanks.

[elie1lwin]

@hoangduchung1903 said:
Are you asking about Q1 ?

yes 🙂 In ques 1 it said cash flow will grow by 5% ( estimate because i couldn’t remember the actual no.) how did everyone calculate for this one? can we use dividened growth model for this one?

[elie1lwin]

@afuyegallas said:
Its so annoying. We will never get to know the answer to that monstrous Question 1.

I would have loved to see the examiner’s answers, just to see how they estimated the number of shares to be exchanged.

exactly! i would love to clear up share for share exchange calculations because the question states that share for share exchange will be based on additional value created (as far as I remember).

[elie1lwin]

The ACCA website only publish March 2017 question, so there’s no way we can know about question 1 of June 2017. ?

[elie1lwin]

hi! Yes I’m asking about q 1 🙂

[elie1lwin]

Hi! How was free cash flow calculated with growth % ? Do you have to find “r” from the growth formula? I’m really not sure about that part. Please help.

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