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hey read the following link it might be useful as it is written by our professor Dear John.
https://opentuition.com/groups/ask-the-tutor-acca-p4-exams/forum/topic/effects-of-change-in-recovery-strategy-from-austerity-to-growth/Dear John,
what do you mean by Risk of Euro Collapsing. I can understand the collapsing of the building due to earthquake but what is meant by
“Euro will collapse” ?Please reply,
ThanksHello John in the above example you said about selecting the one with lower return. Why we should select the second one if the rate of return for first project is 15% ?
Hello, Sir can you please tell if grabbe variant is the part of ACCA p4 syllabus of december 2012 exam
Sir please upload lectures on SWAP and SWAPTION as exams are very near. It would really be a great help.
I agree that the best way is to calculate the tax payable on operating cash flows, and then calculate separately the tax savings on the depreciation.
But if I use the second method in the question NEPTUNE June 2008. So can you let me know how to do that because if I subtract depreciation from operating cashflow then they become negative cashflows, there is again an issue to calculate tax on negative cashflow as there won’t be any tax.
I agree that the best way is to calculate the tax payable on operating cash flows, and then calculate separately the tax savings on the depreciation.
But if I use the second method in the question NEPTUNE June 2008. So can you let me know how to do that because if I subtract depreciation from operating cashflow then they become negative cashflows, there is again an issue to calculate tax on negative cashflow as there won’t be any tax.
I knew it but the way it explains in the book is required to be known or not for p4 exam?
As these issues are being made in a complicated manner and same are being asked in the exam as well
So what approach shall I follow to learn it in simplistic manner or I should go to know about the items in a more complex mannerWhat do we mean by “Transaction Cost Economics” theory ?
Can you please shed some light on it.
Thank you so much 🙂
I would really appreciate sir,
these has been examined twice in examination in the attempts when i had appeared but i was unable to attempt it cause i was not understanding it.Thanks in anticipation for your helo.
I pray may lord give you more strength to carry out the noble cause of helping the studdy buddies 🙂
Stay blessed Stay happy.
Thanks a lot 🙂
Sir I want to ask that in CAPM revision in the book of p4. They are talking something about APM (Arbitrage Pricing Model)
With the APM, the CAPM’s problem of identifying the market portfolio is avoided, but this replaced with the problem of identifying the macroeconomic factor and their risk sesnsitivities.What does this mean and the formula
E(rj)=rf+ B1 (r1-rf) + B2 (r2-rf)…
is representing what sir..
Your reply will be highly appreciated.
Thank you so much 🙂
Thanks a lot sir, I did what you said and yeah I found out that the Be is higher when Bd=0 and is lower when Bd=o.1
Does it means that the shares are more risky when Bd=0 and less risky when Bd=1?
If it means that so what is the interpretation of this 🙂Thank you so much sir.
The consequence of making the assumption that debt is risk free is tht the formula tend to overstate the finavcial risk in a geared compamy and to undestand the business risk in geared and ungeared comapnies by compensating amount.
This is what written in the bpp on page 16. Revision- CAPM topic under the heading of weaknesses in the formula:
can any one explain what does this line means.
Sir I would also like to know that
Financial risk which means that the company is highly geared is an aspect of systematic risk which is specific to the market as written in the bpp. While systematic risk is non-diversifiable.
If we are investing in a company so we have diversified the financial risk. So shouldn’t it be considered as part of unsystematic risk which is only company specific.
I would be waiting for your prompt reply.
Thank you so much
