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Hello Kim
I am asking this out of genuine interest and curiosity .. about the marking process.
Like when we write our exams .. our scripts gets marked by more than one person? Can u give an insight on the whole marking prcoessI have been left with one paper since 2018.. my advice is to not get demotivated and keep trying..
I took a break ..
Now I feel I should have kept trying instead of taking a break.
I got married… And then I revisited AFM I think after a year and attempted did not pass. Then in December I attempted.. but If I don’t make it this time I plan to keep trying till I succeed instead of taking a break.so my advice is keep trying don’t be discouraged. .
Because I think if I had not taken a break and kept pushing maybe I would have cleared it .. so don’t give up keep trying.. if result is not good. Don’t worry keep trying.be positive.Hello ..
So I had written apm 3 times I did not pass..
Then I took a break
I wrote AFM twice and did not pass ..
This is my third attempt.
I hope I wil pass this time.Hello Kim
So those emails are not generic?
I received an email saying
Gift from acca .. pay subscription fees to get discount with learning providers.. and it’s my last paper I was thinkng it’s a generic email 🙁My exam got over but it shows launch exam on my acca.. is my paper submitted how do I know
Sir ..
So that means for the question burung which is an apv question..
We take fcfe and discount with ungeared cost of equity.. so in that question why don’t we deduct interest?
We do the financing effects.. and do calculations for interest on that.. is that the reason ?Ok so that means.. for other questions like working capital and all where they say 1 m is required at begining of year 1 .. for such questions we take in year 0. But for this loan repayment we have to think in terms of which year they will have the right to exercise it ? So it’s an exception to the rule?
I was thinkng in year 4 either the loan has to be converted into shares or we don’t convert them into shares.in the answer they have not converted into shares.. what is the reason that they have not converted it? In most questions that I did.. when they say begining of year 2 … We do the adjustment in year 1
And when they say end of year 2 .. we do in year 2.
So why have they not included it in year 4.. is it like they converted into shares and did comparison with 20 m and they chose to not convert?
If they do conversion the value is 10m shares has to be issued to repay the loan.
If they don’t convert they have to pay 20 m.
So the better value is converting right?
If they donyIbhave one more doubt for this question
I choose the bid or offer rate like this.
Fr eg: for fra
I thought like this we sell euro to bank to buy dollars . So bank buys euro from us and so we use the bid rate. And for fra I used the bid rate.
Now for the premium payable in the options they have chosen the offer rate..
Can u pls explain. We have to make payment in dollars. And the base currency is in euro.so bank will buy or sell euro from us.so can you explain why we used the offer rate.Ok so
It’s like the company had issued floating rate loan … And that interest the company has to pay … And the interest changes each year depending on the curve.so for the company , the 5.797 is the fixed rate interest that would be paid.. if the yield goes up or down.. so this is part b of the question..
And part a of the question 4.847 was the fixed payment to the bank..
So please correct me if I am wrong..
4.847 is the fixed rate that company pays to bank every year.and 5.797 is the fixed rate that the company pays as interest of the floating rate loan to the bond holders.
Am I right? And I am sorry for asking too many questions I just could not understand that bit.. but I hope what I have said is right?So in part a.. for payment should we not multiply with 5.797 instead of 4.847?
Sir since we are typing the answer. .. usually for 1 mark I would write a point and explain it… Since this is typing on computer.. if for 5 marks .. should I just state the points or should I type out just as in written exams
i have one more doubt regarding this q:
Borrowing at the floating rate and undertaking a swap effectively fixes the rate of interest at 5·04% for the loan, which is
significantly lower than the market fixed rate of 5·5%.
On the other hand, doing nothing and borrowing at the floating rate minimises the interest rate at 4·7%, against the next best
choice which is the swap at 5·04% if interest rates increase by 0·5%. And should interest rates decrease by 0·5%, then
doing nothing and borrowing at a floating rate of 3·7% minimises cost, compared to the next best choice which is the 95·50
option.
On the face of it, doing nothing and borrowing at a floating rate seems to be the better choice if interest rates increase or
decrease by a small amount, but if interest rates increase substantially then this choice will no longer result in the lowest cost.
The swap minimises the variability of the borrowing rates, while doing nothing and borrowing at a floating rate maximises the
variability. If Keshi Co wants to eliminate the risk of interest rate fluctuations completely, then it should borrow at the floating
rate and swap it into a fixed rate.this is the answer given in acca website. it states that we should take floating rate and swap it with fixed rate.in our answer we have assumed that they want fixedrate ..can you pls explain
Sir if you could open and read this question on a laptop it won’t look confusing because I have typed out my answer in a particular order ..when I read this through mobile the datas arrangement has moved..
