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Simple is this! May be the next line clear it more.
“In this question Gearing refers to (total debt to total market value) and as we all know that total market value = Total debt + Equity”
got it! 🙂
John! please refer to Kaplan revision kit, it is available under in treasury section A questions, though i have not gone through it.
the Name “calvold Inc” is in part (b) of the question.Dear Mahvish Assalam o alaikum,
This paper might have been removed from ACCA website, Please let me know if this in available in revision kit so i would check it later today.
How can he do this to us? he already suggested 4.2 as risk free on new yield (which seems to be perfectly ok) then how come 3.85 is not a previous debt’s risk free.
Its good that he’s been removed 😉 Shishir also looks like a tough and technical guy but still he gives lots of marks available to get 50…june 2012 is a good example. Anyways Thank you so much john for your precious time.
Thanks john, I would be pleased to help the other students as well if i get the opportunity to do so.
I would appreciate if you see my post (a question from pilot paper) which is still unanswered. I know your answer would be “Time constraints! time constraints! ;)” ….
Dear Harripool! if you can help me out? 🙂
Thanksyes harri, closer to 0.45 is 0.4505 and 0.4495, so it can either be 1.65 or 1.64.
Since the examiner rounds it to the lower side so do we.
Hi harri!
95% means 0.95, we must have arrived at 0.95 by adding “some value” to 0.5 (since d1 > 0). If we calculate that “value” by subtracting 0.5 from 0.95, we will have 0.45. Now just go to the Normal distribution table and see the corresponding value of 0.45, you’ll get 1.65.
Hope john likes it 😉