[shine05]

Thanks 🙁

[shine05]

I got it. Thanks Gromit!

[shine05]

Thanks John. I got it

[shine05]

I have the same problems with ACCA. I mailed to ACCA at least 3 times to ask them about DipIFR, such as whether ACCA organizes DipIFR in my country, where the exam location, timing is, etc…because DipIFR is not popular in my country. Sadly, ACCA havent responded yet though the ACCA automated mail said that ACCA would respond within 5 working days…2 months have passed since the first mail being sent…Previously I asked local ACCA, but they even did not know DipIFR…What should I do now????Such a poor service!!!!!

[shine05]

It seems that my self-confidence has reduced over time…After doing P5 paper, I thought that “Wow, it is good…”. However, after reading other friends’ comments and comparing that with my works, i delightfully thought that “I could pass with 60%…”. But now, when ACCA issued questions of Jun 2011, the probability of passing is…I dare not think more!!!

[shine05]

Lolz
Honestly, i used to hope that i would have some info of study group when reading this post. However, the content is soooooo funny!
I guess that guys who sent their mail address are still hoping to have a new P5 session which are very useful for my studying.
I used to have great experience of P4 study group. In fact, P4 study group didnt have any session, we just shared our materials, questions, explanations via mails. And I personally felt that it was very useful. Otherwise, most of us are so busy at work and the timetable is so strict. So we couldnt attain these sessions.
I remember that when Antonio sent first mail of fixing the timetable, i replied that i couldnt be available at that session due to different time zone (it was 2am my country time and i was full time working so it was so tough for me to wake up at that time).
So, please dont judge us that we just sent our mail address for joking! We are at professional level and most of us have a serious attitude toward studying. We have spent lots of time for studying and we know what the price of being lazy is.
This forum has many great friends who is ready to help the others. I have met a wonderful girl friend here and we usually chat with each other about P5 contents.
Personality, i suggest that we should set up a group for studying. We can chat or share materials or put the questions to the others. Any method which is useful for our studying is acceptable. Hope that this group will be set up early and be successful!
Wish all of us a successful exam!

[shine05]

This is the tax saving on machine investment. The question states clearly that capital allowances are based on reducing balance i.e 25%. Therefore, the figures are as follows:
Year Beginning balance Capital allowance Tax saving
Year 1: 1,800 450 113
Year 2: 1,350 338 84
……
Year 5: 570 570 143

However, scrap is $1,000 at the end of year 5, so tax expense would be ($1,000*.25)= $250.
Therefore, tax responsibility of year 5 would be (250-143)=$107
Hope that helps

[shine05]

@hamdy hafez

P3 is a compulsory paper, so u have to be required to do it…no way. The optional papers include P4,5,6,7. And I have heard that P5 and P7 are easier than P4, however, it is difficult to assess that judgement because i havent done P5,7 before.

I did P4 on Dec 2010. In my opinion, P4 is very tough but it is extremely interesting. Many advanced financial techniques (i.e derivatives) havent existed in my country yet, so I have to imagine much when studying it… Though my P4 exam was not good, but I still love it (dont know y, lol, maybe I still hope in a wonderful result!).

Otherwise, I am scared of studying theoretical paper such as P7, so I have never had a thought of approaching P7. P6 is not available in my country, therefore my options still be P4 and P5.

I remember that u are very active member of P4 group, arent u? How was ur exam? Will u study P5 on next Jun.? If u do P5, pls cont me in ur group to share materials and studying experience.

Anyway, we still have 2 months for hoping and enjoying our life… Dont be so worried like that. It is a wise decision if u start start P5 or P6 or P7 as ur second option while waiting P4 result. Pls throw P4 out of ur mind for 2 months later…

Wish u and ur family all the best!
Merry Christmast and happy new year 2011!

[shine05]

I used to think that Shishir Malde was a light at the end of P4 tunnel, but now I realize that this is the most foolish idea I have ever had!
Anyway, merry Xmas to all!

[shine05]

That is the market value of AggroChem which we has calculated in part i.
MV=400*1.039/(0.1256-0.039)= $4,799m

[shine05]

Let me explain with u what i understand about VaR, and pls correct me if I have any mistake

1- Normal distribution of 95% is 1.645, this figure is taken from Standard normal distribution table

2- VaR is the maximum amount that can be expected to lose over a period of time with 95%/99% probability. As my understanding, VaR is the maximum amount which could add or less to a cost or return at a given level of probability over a given period of time. It comes from the symmetric characteristic of the curve which represents probability of profit and loss.

For this VaR questions, i think, we just need to remember two important and simple figures i.e 99% and 95% probabilities. For example 95% probability means only 95% to get more money than the certain level and 5% probability to lose money. And the Normal distribution of 95% and 99% probability is 1.645 and 2.335.

Assumption that we have to borrow of $1m in next month for 6 months time, the cost of borrowing will be LIBOR+1%, the volatility of LIBOR is 1.5% per annum. Determine total interest expenses for this contract with 95% confidence if LIBOR
is 5% at current time.

Note that Normal distribution of 95% is 1.645, this figure is taken from Standard normal distribution table

Current interest expenses = $1m*(5%+1%)*6/12= $30,000
Maximum loss for 95% per 6 months = $1m*1.645*1.5%*(6/12)^(1/2)=$17,448
Actual interest expenses= 30,000+17,448= $47,448

That means there is 5% that actual interest will be higher than $47,448 and 95% that the actual interest will be less than $47,448

[shine05]

Are they Sleepon and Trosoft?

1- Sleepon: We have to assess the theme park’s investment based on its NPV. It is clear that this project was financed by both equity (i.e 61.4%) and debt (i.e 38.6%), therefore we have to use WACC as discount factor.

2- Trosoft: We would have the same circumstance as Sleepon (i.e financed by equity and debt), but the major difference btw Sleepon and Trosoft is that the examiner required us to apply APV method to assess that project. Therefore, we have to use Ke in this question.

Hope that helps

[shine05]

You can use WACC or Ke as discount factors to calculate NPV, however:

1- If ur cash flows are FREE CASH FLOWS (FCFF), you must use WACC
2- If ur cash flows are FREE CASH FLOWS TO EQUITY(FCFE), you must use Ke

And remember that FCFE
FCFE=FCFF-Interest – Principal payments + Debt issued + Net equity issued

Hope that helps!

[shine05]

These days seem to be longer than usual. I cant concentrate on my business!
Good luck to you all!

[Author]

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