[SOUD SAEED]

Hello guys,

Just a quick clarification, am kind of confused. The financial year of a company from 1st April 2014 to 31 March 2015, would you say it as FY 2014 or FY 2015?

Thanks

[SOUD SAEED]

Thanks Mr Gromit, i really appreciate it.

[SOUD SAEED]

I appreciate really it Mr Gromit, for your prompt reply. I reviewed one question from BPP revision pack and i noticed they deducted the cost of investment from the PBIT however in other questions they didn’t put that under consideration.

Thanks.

[SOUD SAEED]

Thank you very much, i appreciate it.

[SOUD SAEED]

Just a quick question Mr Moffat,

Is it compulsory for a government owned company lets say like Emirates Airline to have shares?

[SOUD SAEED]

I appreciate it Mr Moffat for your help.

Thanks
Soud Saeed

[SOUD SAEED]

I really appreciate for everything Mr Moffat, thanks alot, you are extremely amazing, you really helped me alot especially this semister. May God bless you.

Thanks
Soud Saeed.

[SOUD SAEED]

Hello Mr Moffat,

Sir am still kind of confused regarding capital allowance, kindly correct me if am wrong in this example.
Suppose we are given a project of 5 years. Intial investment is 800k with a residual value after 5 years is 40k. 50% first year allowance followed by writing down allowance of 40% applied on reducing balance basis. Tax payment, tax credit and charges will be paid or received 12 months after they arise. Tax 30%

Year 0 800k
X1 (400) × 30% 120
————-
400
X2 (160)× 30% 48
—————
240
X3 (96) × 30% 28.8
—————
144
X4 (58)× 30% 17.4
————-
86
X5 (40)
————–
46 × 30% 14

My main concern was regarding the tax on arrears, Since there would be a tax charge upto year x6, would there be any capital allowance on year x6? Or its only upto year x5.

Thanks

[SOUD SAEED]

I think i realised my mistake , kindly correct me if am wrong. In the question it didn’t exactly say that the project is worth 4 years, so in that sense we will assume the project is a going concern so the tax shield will be based on 7 years of the Bond. But lets say a project is worth 4 years and the bond is 7 years. My 1st question is it possible to have such combination, and my second question is , if it is possible to have such, then the tax shield will be based on 4 years right?

Mr Moffat forgive me asking too many questions.

Thank you very much.

[SOUD SAEED]

To be honest i dont know how to thank you, i really appreciate for taking all your time and effort to clear my doubts. You are just simply the amazing.

Thanks
Soud Saeed.

[SOUD SAEED]

Suppose we do writing down allowance for the other 4 years and calculate the balancing allowance on the 5th year, is it correct?

[SOUD SAEED]

Thank you very much Mr Moffat.

[SOUD SAEED]

I got this question from BPP Q29 Neptune (6/08)

Where they proceeded for more than 5 years. Forgive me asking too many questions,

Thanks

[SOUD SAEED]

But would it apply in Free Cash Flow to Firm?

[SOUD SAEED]

Sir just one more question,
How about interest received and interest element on Finance lease?, am kind of confused regarding what items to put in Free Cash Flow to equity.

[SOUD SAEED]

Thank you very much Mr Moffat

[SOUD SAEED]

So its k if we can also included them in FCF?

[SOUD SAEED]

The question is in BPP, Intergrand (SFM, 12/02)

(My BPP is exam upto june 2014, Question number 72, the sequence maybe different if you have the latest edition)

I sincerely appreciate Mr Moffat for your help.

Thanks

[SOUD SAEED]

I really appreciate for your help Mr Moffat.

Thanks

[SOUD SAEED]

I really appreciate Mr Moffat.

Thanks

[SOUD SAEED]

Hello Mr Moffat,

Kindly needed your help regarding the above first 3 questions.

Thanks

[SOUD SAEED]

Thank you very much Mr Moffat, you are just one in a million!, devoting all your time, effort helping students, just simply unique

[SOUD SAEED]

But i thought they made an assumption that the forward rates will be the rate in 4 months time, and what if Mr Moffat during the exam i did not exercise the option but i clearly stated my assumptions, is it ok?

[SOUD SAEED]

Mr Moffat, just wanted to add another a small question, during delta hedge, The shareholder is worried that there will be a drop in share price, so he would sell a call option, does selling a call option mean that the shareholder has literally sold his shares but he can buy later when the share price is low? Or maybe its completely independent on its own and any gain or loss from the call option would offset the change in the share price of his shares?

Thank you very much

[SOUD SAEED]

To be honest with you Mr Moffat, words cannot be able to express my appreciation. When i was doing my F9 i got 74%, and actually i learnt most of the work through your lectures. Thank you for everything.

Soud Saeed.

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