[suni6419]

@vasabk said:
I got WACC of approx 14% in Q1
I used the following steps at arriving at this:
1) ungear C’s beta equity to arrive at C asset beta
2) weight asset betas of both companies (C and A) to receive combined asset beta as instructed in question
3) re-gear combined asset beta to arrive at combined equity beta
4) using CAPM receive Ke
5) using pre-tax cost of debt 6% of combined Co receive WACC at approx. 14% (ratio of 40:60 holds after business combination)
6) this WACC was used to discount potential synergy (tax&lay offs)

Why so many people here write that they got 9%?

This was the exact thing I did…! Still not sure if its the right way!

[suni6419]

For the 2nd Ques, part b, for design process, I applied Lewin’s Iceberg Model.. not sure if that is right. Did anyone apply this model?

[suni6419]

@esoluyemo said:
You will divide all of them.

You buy futures and not selling futures. You will sell futures if you are borrowing or making payments.

Here, you are expecting to receive payment in Euro and the bank is buying dollar. This means the bank is buying futures.

I did the same, but got confused with futures calculation and ended up getting really long figure!

[suni6419]

Hey guys, How do we calculate American Call options and American Put options? Pls guide me…

[suni6419]

Okay, thank you Sir… And yes, I am sorry for posting the question in the wrong forum. Will see to that next time.. 🙂

[suni6419]

Even I lost 20 marks from Section A! 🙁 🙁 Completely unexpected and I didn’t understand what to write, and how to write. 🙁

[suni6419]

Hi guddo, Sunita here… I hope I can help you..

Ballast business is quite well understood by parent but need little assistance. Its kind of independent business. They fall under the category of High Feel ( fit between SBU CSFs and parental skills) and Low Benefit(fit between SBU opportunities and parental skills)

Value trap Business provide good opportunities for parenting, but these opportunities do not relate to the SBU Critical Success Factors (CSF). They fall under the category of Low Feel and High Benefit.

[suni6419]

Thank you so much sir.

[suni6419]

I didn’t understand what Ifti explained. I would need your guidance. My query is here:

Sir,

Could you please explain me the terms coterminous and non-coterminous accounting periods?

If parent’s F/S year end is 31st Dec 2013 and Subsidiary’s F/S year end is 31st March 2013, which year end base I would use to prepare group consolidation?

Thank you!

[suni6419]

F6 UK variant was ok ok paper…i liked itt… same as F8….i was running out of time… spent like almost 50 minz for the ques 1 income tax.. tht allowance part literalyy screwed me up…

i did 50000+ 38000 and i deducted ths answer from the gross contributions of 12000…. tht( 50000- 12000) is ths correct??? and for mileage do we need to multiply by 7 months….

and hw abt the motor cars…? multiply into 5/12 …..

and can anyone explain me hw to do the ques 2 part b group relief..as in the loss claim?????

[suni6419]

F8 INT variant was indeed a good paper…kind of similar ques from revision kit…. ques 5 i wrote it as qualified opinion…i was runninggg out of time 🙁 will i lose all the marks?????

n for ques1 part c…. wt r the application controls.. i just wrote some crap…im sure thts the not the answer…. can anyone tel me wt thts the answer…

[suni6419]

@sangria9 : thank u for telling me… well but how much marks will i lose for making a mistake in retained earnings and contingent liabilities? i mean this question was for 7 marks. any guesses.. ??

[suni6419]

@sangria9 : my URP is right. but the retained earnings given was at 1st oct 2011 and since they didnt ask anything in the question, i mean they just asked to find goodwill at acquisition, so its supposed to be 35000 only right? why 6200*9/12?

[suni6419]

ques 1 Goodwill was for 7 marks, SOCI 14 marks and discussion 4 marks.. the question paper can be downloaded from the site…

[suni6419]

@atahenrii hmm i think the difference of 10 is from 160-150… dont rem exactly… gross amount i calculated as costs incurred to date 145 + profit 32 – progress billing 160 … i hope i am correct.. did anyone do the same?

[suni6419]

@atahenri…. ya, even i got the same..percentage complete 64% and gross amount 10

[suni6419]

@petrieann ya, i guess retained earnings is $ 35000 and no time apportionment is required as it was told R.E on 1 Oct 2011.. so i think we have to take it directly…. anyone did the same… and yes, URP is 800*9….

[suni6419]

normally the results are out by feb 8th… this time it can be early since the exam started early.

[suni6419]

do we need to take contingent liability in goodwill calculation at acquisition?

[suni6419]

@mansari… even i got SOFP assets side as $171400. what we had to write about ratio limitations?

[suni6419]

i got 18 million as revaluation. 2 m from land and 16 m from building

[suni6419]

dan1 liy Rev.reserve to retained earnings… i am not sure what i have done is right or wrong.anyways will tell u what i did… new value of building – old value of building/ useful life i think i got 1000 after the whole calculation…. and add this 1000 to retained earnings and deduct from revaluation surplus… i am not sure..i would like if anyone else would clear this issue… i hope u did the same way.

[suni6419]

@ justkency i am not sure about the contingent adjustment..lets hope for the best!!!

[suni6419]

in ques 1, goodwill calculation, how to take contingent liability? is it taken as FV adjustment or is it added with cost of Investment calculation?? and what to do with the investments received from associate? did anyone get share of associate as (2000 x 40% = 800 )?

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