[jemma242]

Ahh yes I understand now… was getting confused with question setter from june 2013… but it is obvious now its not Ted Co’s licence its the distributors.

thank you

[jemma242]

Ok thank you

[jemma242]

Is it Basis of Opinion paragraph or basis for Opinion paragraph?

I thought ‘of’ but answers in my kit say ‘for’ or does it not matter?

Thanks
Jemma

[jemma242]

Thanks for your help :0)

[jemma242]

Sorry to intrude but there is a good article for you to read Yellow.. its called ‘Continue to be rest assured’.

🙂

[jemma242]

Ahh few … I thought I was being really dum. .. I know some of the answers in books contained a few errors here and there but technical articles is very naughty of Acca especially as they say they have been updated!!

thank you for putting my mind at rest I can carry on reading the rest of it now :0)

[jemma242]

Its $10mil .. and the figures are shown in 000s (thousands). I dont know why I dont understand this…

Do you mind showing the calculations as you understand it please?

Thanknu
jemma

[jemma242]

Ok is your reply with reference to P7?

Also useful as I am also taking that :0)

I think I will practice planning when I do qu1 for both papers… do you have any useful techniques?

Thanks
jemma

[jemma242]

Brilliant thank you very much :o)

[jemma242]

Thank you.

Could you also tell me with regards to risk will the Bayes rule pop up and the value of imperfect information?

I have been trying to read my P5 articles bit by bit but the Risk articles part 1 and part 2 seem to be out of date and off the point. I noticed they have been updated in April 2015 but fail to understand the point of the article.

I am ok with the risk methods eg maximax and maximin etc and expected values but unsure why these articles have been written.

Many thanks
Jemma

[jemma242]

Thank you Latoyah.

I have had another thought and thinking I might do P5 Dec, then study P7 just after Xmas to do in March sitting and re -do P5 if I have to. As I am also planning my wedding as well so separating the two exams maybe a better way of doing it.

[jemma242]

Thanks Matt and Seagoat.

Yes I was very time pressured had a lot going on at home as well so was slightly distracted come the end of the revision.

I did do a revision course for P5 but I wasn’t sure how well that helped. I really just want them done now and do not want to do P5 on its own again and fail I think I would be very upset.

Seagoat when you say 2 and a half of a paper what do you mean?

Thanks
Jemma

[jemma242]

It is my first time sitting this and if I fail I will have to retake in dec :0 ( …. but fingers crossed!!

yes my last full question tonight on budgeting then I am covering various sections of different questions in my two days off to polish up on some calculations and definitions. …

thank you…. and you good luck :0)

[jemma242]

OK, it was mentioned at the end of the EVA article part 2 that it is more appropriate tool for measuring the performance of commercial organisations than profit-based ones, which confused me slightly.

[jemma242]

Ok I did the full project of the 8 years but if I divided my figure for the 8 I would have got the same. Would I still get some marks?

So in the exam would be best to do it per year but if for example the scenario said that managers met per month or per quarter to assess the performance it would be logical for us to assess it on this basis?

Thanks
jemma

[jemma242]

Where in the question does it hint that (a) should be calculated per annum?

Thanks
Jemma

[jemma242]

Blimey I would not get that I ended up doing 30% to 70% …. but I suppose this will only count for 1 or 2 marks wont it!?

thank u

[jemma242]

sorry Gromit I cant see it. The answer works the WACC out to be 13.2%

They have done (1/1.3 x 15.8%) + (0.3/1.3 x 6.5% x (1 – 25%) = 13.2%

I just did 15.8% x 70% and 6.5% x 30% x (1-25%) and I got 12.4%!!

I do not understand this?

Thanks
Jemma

[jemma242]

with regards to the same question how is the WACC calculated?

Debt/equity is 30%

Debt pre tax 6.5%
equity is 15.7%

I am unsure how the answer has been calculated.

Thank you

[jemma242]

Thank you…. I have looked at other EVA calculations, I am slightly confused however with Dec 2014, the examiners answer is:

Operating profit $2907
less tax charge ($ 663) this is the figure in the statement
less interest tax benefit ($81)

NOPAT $2163

With this question I can understand working from PAT but not from Operating profit, is it because they use the tax figure from the statement which includes the interest as well? and could we use operating profit – 28% for tax?

Thanks
Jemma

[jemma242]

Hi

With regards to question Metis from June 2012, it starts with net profit and loss before tax and interest, then it deducts the tax from the figure to get to NOPAT, but does not take account of the interest.

However with Dec 2014 question 1, the EVA calculation starts with operating profit less tax and less tax benefit of interest.

Why are these done differently?

Also the tax figures seem different for example in Metis the tax is calculated on the net profit and loss ( x 30%) whereas Dec 2014 qu1 the tax is the figure in the financial statements.

Thank you
Jemma

[jemma242]

ahh that’s so obvious now thank you

jemma

[jemma242]

Thank u … I understand the brand idea as most companies will have a csf for establishing awell known brand to be successful withing the industry they are in.

however I am unsure how the price per product is a csf?! Please could you enlighten me?

Thank u
jemma

[jemma242]

Samirrah

I could be wrong but I read that the 8.4% is the fixed interest charge therefore does not include the equity element.

Next note reads the ‘John has estimated the overall cost of capital to be 12.5%’ therefore including both debt and equity element for the WACC.

[jemma242]

ahh I see thank you!

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