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hello mike please help me with the following adjustment (ROBBY)
prior to year end robby sold land to third party for $16m with option to repurchase back on 1st july 2012 for $16m plus 3% premium.. MV on 31st may 2012 is $25m and CV $12m
robby accounted for the sale eliminating bank O/D at 31 may 2012
year end.31 may 2012sir i also have issue solving the first one mentioned here.. can you please give me your figures (without explaining) so i can just match with mine.. where am i going wrong
thank you so muchIts quite clear.. One thing, referring to the second point we need to take ex. Div valve of share for calculation so thats why you subtracted $0.60
but if the dividend was not paid till the end of the year we would have to take $5.20 as MV?
Also, assuming you have used growth model why have you not added growth at the end
Req return = [Do(1+g)/Po] +g
Thank you so muchat the start of the fourth year ie time 3 they need 10% of 5443=544.3 but they have already invested 790.7 in total so they take OUT the extra 246.4 (264) which is a cash inflow and lastly in time 4 they will take all of the 544 invested
hope that helps 🙂Yes it was in the dec 14 exam
All the calculations will be the same for the cost? Its just an additional working for that WACC table in the last?If we do it as 0.8??2660??90%
That would result in a different final result ie net cost
Which is different from the kit answerThank you sir i got it 🙂
And what about the working capital in the last year when we are supposed to take it out of the project.. It should be the original one or the inflated one?
