[peilin]

Thanks so much John!! 🙂

[peilin]

Thank you John! 🙂

In June’13 Q4 part (c), it mentioned that the profit before tax is 23% of sale revenue and it charges depreciation on a straight-line basis on its non-current assets of $220 million. So, it means the depreciation is tax allowable?

[peilin]

Hi John,

I have one more query, does “quoted beta” mean equity beta?
I am confused when sometimes the case scenario didn’t mention if it is equity beta or asset beta.
Is there any way I could differentiate it?

Thanks!

[peilin]

Thanks John! 🙂

[peilin]

Hi John,

I don’t understand why N(-d1) is plus with 0.5, shouldn’t it be (0.5-(0.0199+(0.0239-0.0199)/2)?

And in BPP text, with the option to abandon, given the d1 is 1.6424 and N(d1) is 0.9495, the N(-d1) is calculated this way “1-0.9495 = 0.0505”. My question would be why using 1 not 0.5?

Many thanks!

[peilin]

Thank you John!

[peilin]

Hi Sir,

Why don’t we need to find the market value of equity?
How would I know if the examiner is not trying to test our understanding in calculating the correct market value of equity?

I am assuming that the market value of equity will be “1-Vd (before adjusted for tax)”, given the market gearing (adjusted for tax) is 50%, how can the equity be 50%?
If i am assuming that way, it means all my answers will be incorrect.

I realise that the asset beta for property is by multiplying 1.25 with 0.5 = 0.625, so 0.5 represents [Vd (1-T)/ Ve + Vd (1-T)] but instead of multiplying it with debt beta, we are using equity beta.

Am I making it too complicated by trying to find the market value of equity? 🙁

Please advise

[peilin]

Hi Sir,

I have used the representative portfolio of property companies to find the asset beta, but my asset beta is 0.39 not 0.625, can you please explain how to find the asset beta for property companies?

Vd = 0.5/ (1-0.35) = 0.77

beta asset = 1.25 (0.23/ 0.23+0.77*0.65) = 0.39

May I know which part I have done incorrectly?

Thanks very much!

[peilin]

Congratulations to those who passed P4!
I am thinking of taking P4 in June 14, can anyone please recommend which study text I should get? Kaplan or BPP?

[peilin]

A lot of practise on past year questions is important and these are available online for free.. 🙂

[peilin]

Hi, I am thinking to get the study text from Kaplan.. May I know how is BPP better than Kaplan?

Thanks!

[peilin]

if i am going to re-sit for the 3rd time, should I buy a F5 revision book or the OT notes will be sufficient? can anyone please advise? Thanks in advance!

[peilin]

49 second attempt 🙁 , should I pay to recheck my paper?

[peilin]

@elliem said:
Did anyone else write about how they should use non financial measures instead of net income in q1b? Or did I completely miss the point?!

I was thinking the same, I wrote non financial performance measures, but no one seems to have mentioned about it all. Am I writing irrelevant points?

[peilin]

Hi,
May i know if i used the expected value in my maximax, maximin and minimax regret will gain mark for the calculation?

Thanks!

[peilin]

Thank you!

[peilin]

@angryhamtaro, Thanks so much for your advice! 🙂

[peilin]

Can anyone please advise whether i should get the Kaplan or BPP textbook for P5?
Thanks!

[peilin]

Hi,

Same question from me too, i’m planning to take P5 in Dec sitting, can anyone please advise whether I should get Kaplan or BPP textbook?

Thanks!

[Author]

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