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If you want to askthe tutor something directly, please use the ask the tutor forum-
My own opinion on your question is that you are right about standard normal distributions but with value at risk the concentration is on adverse outcomes.
Please see the following thread-
Also see the following-
https://opentuition.com/acca/acca-exam-prep-centre/acca-students-with-exemptions/
You might find the following link useful-
https://www.accaglobal.com/uk/en/student/sa/student-podcasts/svlc.html
You might find the following link useful-
https://www.accaglobal.com/uk/en/student/sa/student-podcasts/svlc.html
You might find the following link useful-
https://www.accaglobal.com/uk/en/student/sa/student-podcasts/svlc.html
Welcome to the Opentuition forums. Yes, the lectures and notes are up to date for the June 2025 exam. Please use these in conjunction with each other.
I asked the AI on this site for the definition of an equity warrant. The following was its response-
“An equity warrant is a financial instrument that gives the holder the right, but not the obligation, to purchase shares of a company’s stock at a predetermined price (known as the exercise or strike price) within a specified time frame. Warrants are similar to call options, but they are issued by the company itself rather than being traded on an exchange. They are often used as a “perk” to make debt offerings more attractive to investors, allowing them to benefit from potential increases in the company’s stock price. If the market price of the shares exceeds the exercise price, the holder can exercise the warrant to buy shares at the lower price, potentially realizing a profit”.
I asked the AI on this site for the definition of an equity warrant. The following was its response-
“An equity warrant is a financial instrument that gives the holder the right, but not the obligation, to purchase shares of a company’s stock at a predetermined price (known as the exercise or strike price) within a specified time frame. Warrants are similar to call options, but they are issued by the company itself rather than being traded on an exchange. They are often used as a “perk” to make debt offerings more attractive to investors, allowing them to benefit from potential increases in the company’s stock price. If the market price of the shares exceeds the exercise price, the holder can exercise the warrant to buy shares at the lower price, potentially realizing a profit”.
$10mn debt Provided
10 shares for every $100 of debt provided.
$10mn/100 = 100000.
10 x 100000 = 1mn shares.
100 cent=$1 strike price for each share.
$1mn cost if option is exercised in full. Are you happy with the response to the interest question that you asked?
No exchange of debt for equity is to occur. Please read my initial response.
In terms of your second question it’s because no trade is being made of debt for equity. The warrant give a right to buy a million shares at a strike price of $1 a share after two years. This doesn’t impact the debt part of the agreement.
So interest in year 1 = $10mn × 0.18= $1.8mn
Interest in year 2= $8mn × 0.18= $1.44mn
In year 3 = $6mn × 0.18= $1.08mn
The pattern above continues for the duration of the loan.
In terms of your first question, it’s because of the way The interest is calculated. Since the principal is payable in five equal instalments then the interest is calculated this way (on the remaining balance of the loan).
Just for future reference to anyone coming across this thread, dedicated exam threads are opened at an appropriate time on the day of the exam itself (on the evening of the exam day UK time). For example for this exam the following thread exists-
https://opentuition.com/topic/december-2024-acca-afm-exam-instant-poll-and-comments/page/2/
I am sure another one will be created for the upcoming exam.
See the following for confirmation-
https://opentuition.com/topic/errors-carried-forward-marks-2/
I think as a general principle in ACCA marking if an incorrectly calculated figure is input into a further calculation, that incorrectly calculated figure would be accepted as “correct” for the further calculation to avoid penalising a candidate twice.
Here’s what the ai on this replied to your questions-” In the ACCA Taxation exam, particularly in Section C, marks are awarded for both the process and the final answer. If a candidate correctly applies the principles for most elements of a calculation but makes an error in one of the figures, they may still receive marks for the correctly calculated figures, provided they have shown their workings clearly. The examiner can award follow-through marks for the method applied, even if there are mistakes in the final answer. Therefore, it is crucial to demonstrate all workings to allow the examiner to assess the candidate’s understanding and grant partial credit where applicable.”
1 Jan 2008 is the date of acquisition. This is the key date for the calculatin of Goodwill. Goodwill is the difference between the full consideration given and the fair value of the net assets obtained. The profit for the three months before the date of acquisition was earned by Sing Co as an independent entity. This therefore contributed to the net assets of Sing Co at the date of acquisition and therefore should be included in the Goodwill calculation.
