[sarsal72]

Just a reasonable figure to use as a proxy mark-up for a competitive product.
Any other reasonable figure is also fine. f.e. BPP in their books use 25% for the model answer.

[sarsal72]

P3 and P5 together would be better though. There seem to be so much overlap.

[sarsal72]

I would say try to create as much as possible exam conditions and do question under strict timing conditions (i.e. Part A type questions 90 mins, Part B type Questions 45 mins)

I believe this is more important than on which questions to concentrate. Any exam questions after Dec 10 should do I guess.

[sarsal72]

Hi,
You should start with the operating profit, not PAT, since interest (finance costs) need to be omitted (they are part of WACC) and tax amount in the question does include clearly deferred tax elements (so tax paid <> tax 2,100,000 vs 2,512,993).

You add back:
Marketing capitalised 3,819,000 (long-term brand building)

You deduct:
Tax paid 2,100,000
Lost tax relief on interest 200,250 (801,000 x 25%)

Hope it helps

[Author]

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