[jaisonacca]

Sir I couldn’t understand how the Beta .625 is arrived at in finding out the beta for retail store.In the question it is mentioned that the property business has a ‘representative portfolio’ with an equity beta of 1.25.

Very very confused. Rest of the part is fine.

Thanks in advance.

Jaison Philip

[jaisonacca]

Got 73%,first attempt.Glory to Jesus Christ..Ameen.

[jaisonacca]

Dear Tutor

That information very much helped me to get out from mental stress.Thanks.
Could I again add on to that , why that loss on disposal { (6) in old bpp revision kit and (7) in correction sheet as you said } is not taken for impairment testing of Grange.

I am confused in general as to what all items we should take for the calculation of
impairment of net assets.

Tutor grateful if you could help me on this.

regards
Jaison

[jaisonacca]

??? anybody …..pls help

[jaisonacca]

I have old and new bpp kits.90 percent its the same.however the 10% could make difference.

[jaisonacca]

Q1 NPV , it was mentioned ‘new investment of 3.5 M will lead to an increase in cashflow by 750000 each year’. So is it like 750000 in the first year , then 750000 * 2 for second year …..like that ? Im confused.

[jaisonacca]

Hi Thanks for the information, in fact I ignored Money Market Hedge technique but founf that its really an easy bit.

I have a doubt(perhaps a silly one).
In many questions I found like this,

“Current 3 months interest rates are
US Prime :6.4% – 6.9%
UK LIBOR : 9.2% – 9.9% “.

Could anyone explain to me what is 6.4 and 6.9 stands for in the US Prime rate and also what is 9.2 and 9.9 stands for in the UK LIBOR rate please ???

I am not going to say my assumption as I know its wrong .

Thanks very much in advance.
Jaison Philip

[jaisonacca]

@sathjyot said:
Linear programming is a method to know the optimal usage of scarce resources for the set objective:-

Profit maximisation:-
If an organisation has resource constraints (say limited hours of labour available for the period, or limited quantity of material avialable) the number of units of products to be produced with the limited resourses to achieve maximum profit can be identified through linear prgramming method. Here the the objective of the organisation is to maximise profit with the resource that is scarce.
If you draw a graph to know the line of best fit, the feasible region would be towards the corner of x and Y axis
Cost minimisation:-
The theory is same ,however, the objective of the organisation is changed. In this case, for eg.,there are situations for an organisation to maintain certain mix (raw materials etc) for the production process (the constraints), while looking for cost reduction. Linear programming is useful to identify the optimal mix (ie, which raw material to buy at what quantity )that will reduce the cost for the organisation.

If you draw a graph to know the line of best fit in this case the feasible region would be away from the corner of x and Y axis

It is possible to calculate the answer through simultaneous equations:-

However if the exam questions demand a graphical representation, as it is most likely, then you have no option but to claculate it through a graph, without which you may loose the deserved marks

past exam questions are available in ACCA offical web site

Thanks friend.

Could you say how we should find the optimal solution values to put in the equation ? I mean suppose if we have a polygon with 5 cornors say A,B,C,D and E , in this case how can we find the ‘value for X inorder to put in the equation to find the Y value’ in the contribution maximisation senario.

Regards
Jaison

[jaisonacca]

Heyyy I got 73 – expected a just pass or above 40 !!Thank you Jesus.

[jaisonacca]

Thanks very much , Yes I had FA08 book.

[jaisonacca]

alright thanks.

[jaisonacca]

@kingnasha said:
Hey,

Repairs, renovation, decoration, redecoration are all revenue expenses and are allowed to be deducted.

Is RENOVATION revenue exp ? Its capital right ?

[jaisonacca]

Thank you very much tahir

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