Forum Replies Created
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- March 11, 2024 at 11:15 am #702769
Hi Reni,
I had the exact same questions in Sec C! My answer was that factoring and settlement disc were both acceptable,what about you? And yes the second qs was very long compared to the weightage of marks(6 methods was a lot)March 10, 2024 at 10:28 am #702560Thank you very much sir.
March 9, 2024 at 8:21 pm #702538Afrazali,its very very wrong of you to say this.Had you watched the lectures you would’ve known that its clearly there.
The help opentution is doing for thousands of students is beyond remarkable.
So please check twice(or many times in your case) before you go off! And have some respect!February 17, 2024 at 10:34 am #700542Thank you so much sir.
May God bless you.
February 16, 2024 at 8:53 pm #700519Qs Beaver,i have replied to your reply under that thread sir.
Maybe it has started a new thread by mistake, if so I’m sorry.
Here’s the question,
Beaver Co has 100 million equity shares in issue and has just reported a profit, after tax, of $55m.
A new issue of 50 million equity shares at an issue price of $1.50 is being considered. All proceeds would be used to redeem a bank loan with an annual cost of 8%. Beaver Co pays corporation tax at a rate of 20%.
Assume that operating profit (profit before interest and tax) remains constant. If the equity issue goes ahead and the bank loan is redeemed, what will be the new earnings per share figure?A0.399
B0.367
C0.598
D0.388February 15, 2024 at 9:16 pm #700452Dear sir.
It says that all proceeds were used to redeem the loan.
The total proceeds from the issue is 75m(50m*$1.5) .
Does this imply that the 75m used to redeem covers the nominal value of the loan as well as the annual interest paid? Therefore nominal value is 6m(75m*92%)?
And how do we get 4.8m of additional earnings after redeeming the loan?
Thank you very much
January 26, 2024 at 8:57 pm #699149Anytime! I’ll be sitting for TX and FM!
January 22, 2024 at 4:44 pm #698864I just checked and the issue has been resolved. Able to book now.
Thanks all.
January 22, 2024 at 4:39 pm #698863Thank you very much Soosees29! Will inform you too if I come to know that its working
I hope you get to book in time and best of luck !Also may I know which exam are you planning on taking?
December 30, 2023 at 6:45 pm #697515I got it from the current edition BPP Revision Kit mock exam 3, question 31.(Dec 2016 exam updated to FA 2022)
Explanation provided:
“For 2022/23 , (100000-12570-(37700+(500*12)))=43730 of Jack’s income is currently taxed at the higher rate of income tax.
This is less than the available annual allowance of (40000*4-(500*12)*4)= 136000 for 2022/23Restricting the amount of personal pension contributions to the amount qualifying for tax relief the higher rate will minimize the cost of pension saving because each 100 saved will only effectively cost 60( 100 less 40% tax relief)”
May 28, 2023 at 12:14 pm #685231Thank you sir
May 14, 2023 at 7:48 pm #684349Hi
No sir its the exact same question
What i didn’t understand is that for the closing balance of deferred tax taht has to be recorded in the SFP the amount they have recorded is the opening balance plus the closing balance (Opening balanceas at 1 April 20×7 19200+ 2000(calculated deferred tax closing balance))Aren’t we supposed to show the closing balance as just 2000(temp diff×tax rate)?
Thanks. God bless you sir
May 10, 2023 at 11:52 am #684140Hi
No, you just have to get more than 50 marks overall to pass the exam. There’s no individual pass marks allocated for sections. This applies to all the exams.
May 7, 2023 at 9:24 pm #684029Sir in the same above question, the closing deferred tax position can be calculated as 10,000,000×20%=2,000,000( Temp diff ×tax rate)
But in the answer provided by BPP the deferred tax amount is shown as following in the Statement of Financial Position:
NCL
Deferred Tax (19200+2000) 21200
And could you please explain points (iv) and (v) with the answers as well.
Thanks!
May 5, 2023 at 12:19 pm #683950Yes sir i understand that but why does this adjustment reflect under the investment in associate figure as well sir?
Thanks
March 19, 2023 at 1:23 pm #681523Hi Chris,
Thank you so much once again. Will definitely post a question if I have any doubts.
March 14, 2023 at 7:17 pm #681308Yes you can but it is highly recommended to use a revision kit as well.
And go through the OT revision lecture as wellFebruary 23, 2023 at 7:05 pm #679525Thought so sir. Thank you so much for replying and explaining.
God bless you sir. - AuthorPosts