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Dear John, thank you for your help.
Regarding my first question, my coinfusion started when I was doing question 212 YGV Co from BPP revision kit. In the answer they calculated the cost of debt , in the time 0 they deduct the nominal value. My logic tells me that because the company is issuing the bonds to raise funds, they should receive the 100 nominal value and pay the interest of 9% each year. Am I getting it totally wrong!?
Hi John,
i am having trouble to understand the answer of June 2012 Exam paper question 5- Biscuits and Cakes, question D.The examiners` answer says:
This calculation shows that, if the investment is undertaken, RI is actually lower than without the investment. So, if either
ROI or RI is considered by Division B’s manager when deciding whether to undertake the investment, the investment will not
be undertaken. This decision will be in the best interests of the company as a whole, since the RI of the investment alone is
actually negative ($132k – $212k = $(80k)).Could you please explain where the figure $132K comes from ? How is it calculated?
Thank you in advance.
Hi John,
Thank you very much for replying back to me. This is a great encouragement. I am very nervous whether I will have enough time to prepare for the exam in September and how to approach the exam. I have got exemption of the first 4 papers on the basis of my BA which I completed in 2010 and I am afraid have forgotten a lot because my work is not related to my degree. I must mention that back in University your lectures helped me immensely to pass my accounting exams.
My worries are that I do not have enough time because I need to revise first (and that is what i am doing at the moment the F2 paper) before I start with F5 preparation. Would you be able to advise me on what to concentrate in F2 paper to give me the necessary basics for continuing to the F5 exam preparation?
Kind regards
Hi Andrew, Can you tell me the books you study from for your F5 exam – did you use just the study text or you used the revision kit as well? Is this what I need
https://www.bpp.com/lm-product-details/lmproddetails/3730
https://www.bpp.com/lm-product-details/lmproddetails/3730Thanks
Mariyana