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Passed with 57% and now I’m an affiliate! Thank you so much opentuition and BPP.
Don’t be disheartened with failure, keep going! You will get there.
Hi, This was also the same problem I had from the first post: ‘I do not understand the calculation shown in the answer ($(20 + 70 + 120 + 170) since the question mentions that “The direct costs were $20 million in February 2016 and then $50 million in each month until the year end, 31 May 2016.” I therefore got the total cost as 20 plus (50 x 3) =170’
I get where the figures have come from but I still don’t understand why 20+(50×3)/4 isn’t the correct answer compared to the answer in the textbook?
Also, on Q2 part (b), the examiner stated that the shareholders may be concerned that there is no maximum cap on the convertible loan notes, allowing Tippletine to force conversion if the share price reaches a high enough level (last sentence of part b). But the effective price of conversion is $2.75 per share so surely there is a cap if this is the set price?
Many thanks again tutor, your help is very much appreciated.
JustineSorry I still don’t understand or didnt explain properly.
So for example, the non-current liabilities are 16,600 didnt get transferred to the new company so would still remain with Bento.
Then if the balance sheet balance for debt is rolled forward from year to year so it would be this 16,600 loan plus the new loans and interest from part b. Otherwise it’s like this 16600 Non current liability just disappeared?
Sir you are a legend! I totally used the 12.46% in the wrong way. Makes sense now. Thank you very much!
For some reason I can’t get the cost of capital to be the same
For the ungeared Beta, I calculated: (0.80/0.8+0.20×0.82)×0.1246) = 0.10340
But if I use this and the same 80:20 ratio to calculate the geared Beta, I end up with the Beta just being 0.1246 which makes me think I’ve done something wrong?