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hi, is there anyone who can share the 2017 study text or practice kit that is valid for March 2017 exam, please share through email.
thanks for your help.
hi Sheikhimran02, im in the same boat at you. Let me know if you find any guide! ACCA feedback is useless and not helping at all.
Hi Flexi,
Sorry for jumping in, but wanted to privde you a quick answer. The two formulas you referred to are:Ke (Cost of Equity) = D1/P0+g . (D1): D stands for divideds, 1 is representing the growth in divided. (P0) stands for price of share today (g) at the end is the growth rate. This formula could also be written as D0 x (1+g) /P0 + g. In this case the D0 represents dividend today and you multiply it be growth rate.
Kd (Cost of Debt) = i x (1-T)/P0 : (i) stands for interest rate, (T) is the tax rate. say a company tax rate is 30%, to use that in the formula than you enter (1- 0.30) and you will get 0.70 as a result that needs to be multiplied interest rate (i) divided by the current market price of shares.
When do you use them? You use to mostly in calculating the WACC or weighted average cost of capital, but there are other instances where you will need to use them. Important thing is to learn them and rest will be putting numbers in right place.
Beta is an index or a measurement of a company or projects systematic risk compared to it is industry. you use it mainly with CAPM or capital asset pricing model. To understand it better you will have to do some reading on related topic in the book.
Hope I did not confuse you further 🙂
J
Well, I cant resist not to write a few words about this exam. I have taken 2 weeks off purly for practicing the whole book and doing every single practice kit question including the 50 markers, so was hopping to come back from exam confident, but what a mess! This examiner is a disaster!!! I hope he reads this note and realise. Test us on knowledge, not your native trickly slang words put in between the text and you expect the students to read your mind and figure out what you mean!!! In Q1 I have missed to realise the need to cacluate options, I did think about it, but than i said, if options were requried than there maybe some indication of volitality. I just did not realise the proabilities were indication for the strategic options! The requirement stated was keeping students confused, what is wrong in being a bit more clear in your expectations?
This paper (Q1) been a disaster and it has confused most of students. Other questions were fairly okay, but like me many other students got trapped with reslovling the big mystry of Q1 first which left us hardly any time for other questions!
ACCA is certainly not after testing knowledge, rather they are testing you on how well do you guess the the full sentence when only one word of a sentence is quoted and how fast can you write..
As students we will have a chance to convey our concerns in next survey, so lets remember to do that. I think its fair to expect a fair amount of guidance from the examiner and being a student does not mean they can through anything at you as they want, even though its not fair! I certainly see I was not the only one confused about the Q1 and if that was the examiners intention than i guess objective well acheived Mr. Examiner! For next sitting I will make sure I take some scrabble training so I can become an accountant!!!
@ Taurus: You can find a copy of the report issued by PWC on the same topic here: https://www.pwc.com/en_US/us/cfodirect/assets/pdf/point-of-view-integrated-reporting.pdf
Hope it helps.
J
