[mracca11]

Hi Sir,

I need an advice too. So im giving p2 tomorrow. For the june session I’m planning to give p4 and p7. But like the p2 changing to SBR in september, are the p4 and p7 exams changing too for the september exams, making them even more challening that they’re at present? Or will p4 and p7 remain the same ?

Thanks

[mracca11]

And Sir one more question. In section C when they ask us NPV questions for 12 marks and they give us sales and variable costs and fixed costs and they give us inflation rates as well to adjust them. however i only am concerned about one issue. I was solving the september 2016 paper just now and the npv question in section c for sales and variable costs when they take the inflation rates for selling price per unit at and variable cost per unit they took it for 2 decimal places and when they were adjusting the fixed costs for inflation they took to 3 decimal places. my issue is that when I took 2 decimal places for fixed costs as well i was getting a difference of some amount for each because they took 3dp for fixed cost and I took 2dp for both sales and variable costs and also fixed costs. now would they award marks if I use 2dp for the whole inflation adjustments and calculate figures ? please confirm, because they havent written in the question what should be used.

Thanks

[mracca11]

Okay Sir and lastly, I just saw a question in the specimen exam of the bpp kit where they ask ” Assuming the conversion value after seven years is $126·15, what is the current market value of the 8%
loan notes ” and in the OTQ paragraph about the company, they’ve mentioned “Par Co has a cost of debt of
9% per year ” .

So in the exam when they tell us something like this do we assume its the before tax cost of debt and use it in the calculation for the market value or we take it as an after tax cost of debt and use the normal interest rate of the loan note ( 8% in this case, for example. )

Thanks

[mracca11]

So when do we use the after tax cost of debt for the calculation ? like how will the examiner ask if he wants us to use the after tax cost of debt.

Thanks

[mracca11]

Hello Sir,

I would like to know if the notes and video lectures for F6 currently available on the OT site are valid for the September 2017 session examinations ? And also is the tax rate gonna stay the same and so is valid for September 2017 exams ?

Or are you gonna update them or something ?

Thanks ?

[mracca11]

Thats the Issue as well. They haven’t given any cost of capital. That is the only information provided by the examiner. Mr Moffat please help us ? .

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