[rick]

Haha, it may have value as it’s probably an option to expand~When you are doing investnent appraisal for coming to China, my offer will add value to that~Haha
🙂

[rick]

Hi John,

finished my P4 exam today. All went well, except for a silly mistake that I wrongly took the forward rate as the spot rate during futures and options caculation……realised it after I walked put the exam hall.
Felt a bit panic by that moment, then I told myself I’ve demonstrated my understanding on that specific topic, hopefully the I’ll be able to gain the rest marks for my caculation.

Still, I’m here not to get comfort but to express my gratitude.

Doing ACCA is one of my best decision made during my university time, and choosing Opentution is another best decision!
Opentuition has been with me for the past two years since I started to take F6 in my second year at university. Now I’m going to graduate and I will work for E&Y after my graduation, thanks to ACCA! (I participated in a case study competition held ACCA China and won the Best Individual Award, that really helped me to develop my professional career. )

I understand this is just the beggining of a young guy’s life, especially for a young part-qualied accountant. And I felt so lucky to meet opentuition at the start of my career, the concept Opentuition tries to deliver has deeply embedded into my mind! (The best thing in life is free.)

Thanks John! The moment you started Opentuition you may not realise, that some day in the future, this will change people’s life. It did change my life:)

Ten or twenty years later, when I look back at my university life, my ACCA study experience. I will come to Opentuition and tell those young people, that how lucky they are.

Dear John, you are not just a tutor, for me you are more like a respectful uncle. I would like to thank you for all the efforts, time, and your perseverance.
(Probably I should not post it here, as it’s not relevant to Sukuk, haha. But anyway, I just wanna express my gratitude personally and forgive me this time.)

BTW, if you ever come to China, please let me know! Great Chinese food available at any time!

Wish you all the best!
Rick

[rick]

Hi John, thanks a lot!

I found the article in F9 yechnical article, and found the fact Ken Garret is the tutor for F8/P3, I’ve seen his name coming out so many times in technical articles, just realised that’s him!

[rick]

Thanks a lot!

One more thing, when we are talking about IRR and MIRR, we say IRR/MIRR assumes cash flows being reinvested at IRR/MIRR. What doea it mean?

[rick]

Probably we can get some insights from examiner’s report regarding Sep exams.

[rick]

Hi Mike, what five steps?
Is it like, materiality, accounting and risk of material misstatement? Can’t figure out the rest two.

[rick]

Hi John, thanks a lot!
Now I understand the whole key point about using options with risk managenent question will be to fix a worst outcome and this has been explicitly demonstrated by the Interest Rate Collar.

Thanks a lot for your kind sharing and consistent efforts in keeping sharing free resources!
Wish you all the best!

[rick]

Dear John, I understand what you said about M&A, it’s mainly due to informatio asymmetry. There is no absolute right or wrong answer, as long as we can base our answer reasonably on relevant P4 knowledge, and demobstrate our thoughts. There will always be marks available.

Thanks John!

Still, about the use of Option in risk management, there are always marks for calculation (or explanation) of second exercise price, either in Forex or interest rate risk.
What am I supposed to explain for the second exercise price if I do not calculate?

[rick]

Hello Dear Gromit,

Thank you for timely reply. I‘m from Mianland China, you may be aware that Chinese Economy is booming in recent years, though the expected growthrate of GDP dropped to 7% this year, still, the whole Chinese Capital Market is in a tremendous flourishing condition. The Value of stock market has just doubled in the past six months!

You are right to deal with macro/micro-environment firstly, however, I have to let you be aware that to give strategic advice is the last part of the whole analysis report. The case study, is based on an acquisition completed several years ago, and we have dealt with the rationale behind this acquisition and the subsequent performance of the acquisition in the first two third of the report. And now, we are recommending strategies based on our financial performance appraisal which has been covered in the two third of the report.

But you are right saying looking at the business environment firstly, I think it’s necessary to mention the business environment has changed a lot since acquisition and demonstrate what changes might influence our business.

I will look at it more tomorrow, which is about 7 hours later. (It’s now 12:24 p.m in China), Good night!

Thanks again for your kind efforts.

Regards.

Rick.

[rick]

Dear Gromit,

Thank you for your timely reply and kindly advises. Sorry for the late reply.

You are right indeed, PESTEL could be used to demonstrate the changing macro-environment, and 5 Forces could be used to analyse industrial environment. However, the giant company we are analysing now, they have already acquired a national bank several years ago for the purpose to be a comprehensive financial company. If we use Ansoff to analyse, it was like related diversification (New Product into New Market).

So now what we are doing is to look at the subsequent performance, and give some strategic advises for its future development. From my point of view, it may not be appropriate to analyse macro/micro environment by using PESTEL/5 FORCES. We may can try to recommend “Organic Growth” to further develop. As the company itself now is the Top 150 of the Fortune Global Top 500, and it has a wide financial platform which can achieve cross-selling of banking, insurance products.

What do you think?

Thanks again for all the kind efforts in bringing free study lectures and resources for all ACCA students.

Regards.

Rick.

[Author]

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