[nevada17]

I was using BPP P&R kit and was confused on the answer as it said 2m * 0.06, looks like it could be a typo.

Thank you, I’ll check out the /fm-2018-marjun-hybrid-a.pdf

[nevada17]

Hi,

Sorry, for the confusion, i should have been clearer.

The question a (iii) Assuming debt finance is used, calculate the revised earnings per share after the business expansion. (3 marks)

The finance cost interest = 475 (=315+160)
The extra interest is 160, which according to the answer it’s 2000 x 6%, which i don’t understand as 2000 x 6% = 120 not 160. and i don’t know where the 6% comes from?

Please, can you help me?

[nevada17]

Thank you for confirming!

[nevada17]

thank you for confirming! 🙂

[nevada17]

That makes more sense now. Thank you!

[nevada17]

That makes more sense. Thank you! 🙂

[nevada17]

Thank you 🙂

[nevada17]

Hi Kim,

Thank you for explaining. I definitely misinterpreted the question.
This makes more sense now that you’ve explained it.
‘Indicators that may NOT be a going concern’ means factors that show the company may not continue in the future, such as the suppliers and low cash reserves mentioned by the answer and yourself. ?

[Author]

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