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Happy to announce that I have passed my OBU RAP with ease, all thanks to my mentor Gillian Moorse!
She is very honest with a student’s work, and stimulates progressive and notable improvement from my personal experience, I cannot recommend her enough. She would provide detailed and considerate feedbacks which is a major reason as to why her mentoring skills are adored by many (as mentioned by many of her previous students on this form). My topic of choice was topic 13 (Poor Ethical Business Practices’), it is usually a minority choice but a really interesting one compared to the rest. Gillian being a specialist in the area of Corporate Governance, would provide valuable knowledge on aspects that must be addressed in order to draft a decent report. You can always get in touch with her for absolutely any question via email anytime during your RAP and she will always provide valuable advise.Find details about Gillian Moorse and her service: https://absolutementoring.uk/about/
That rule is no longer valid.
Email students@accaglobal.com to confirm your interest in the OBU degree program, in case your status in your myacca account shows up as opted-out (although not an issue, but do it as a precaution).I just realized, I kept using the gearing ratio formula (debt/debt + equity), hence why I thought 50% debt/equity ratio (likewise for 25%) elaborated to 50 for debt and 50 for equity, still giving 50% ratio. Which is why I could not come to a conclusion.
I went with $4.5 for conversion premium, I got $124.5 for mv of loan note and $120 for share value. Info I recall; 9.5% convertible loan notes, 7% rate something (took this as discount factor), 20 shares for one loan note with market share price being $6 and redeemable after 5 years. Nominal value of loan note was not directly given so assumed it to be $100.
Conversion premium = mv of the convertible loan note – mv of the 20 shares (20x$6)
For the mv of convertible loan note part, the present value of loan note on redemption is $71.3 (100 x .713) since it was said to be redeemable at nominal value and present value of mv of the 20 shares conversion is $85.56 (120 x .713), choosing the higher return option which is $85.56 (conversion instead of redemption) and adding it with the present value of the interest payments for 5 years $38.95 (9.5 x 4.100).
The above gives mv of the convertible loan note as $124.5.I may be wrong, what are your thoughts?
I still remember the main data from that equity beta question.
Engineering – 25% debt/equity ratio.
Industrial – 1.36 equity beta & 50% debt/equity ratio.I couldn’t get a proper answer, so went with 1.17 or 1.7 (whatever the one with seven was)
Section – A, Find out the equity beta of the Engineering company. What answer you’ll get?
