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@qi4022 yes you must deduct fixed costs
@caspian087 i don’t remember
@apostolou for the first 2 MCQ i got the same answer.
yes effectively bank overdraft is a cost for the company, therefore we must include it when we calculate WACC. The WACC for question 31. is 11.69% say 12%
for question 32: inflation must be incorporated. so for each year the selling must have been inflated by 1.03 for 1st year, 1.03 to the power of 2 for 2nd year, 1.03 to the power of 3 for 3rd year and so on. And same for variable costs.
i think it was okay for Question 1 i took $4000 as goodwill id calculated at aquisition and not at year end.
And for sales from subsidiary to parent i use $1000 as we have to eliminates intra group balance.. Depreciation is 2400/2 years by 9/12.
I had never see such question before and it was very confusing
