[svetla]

Clear. Thanks a lot!

[svetla]

Q2
my calculation. Is that correct?
Tax diff = 40m$*25% = 10m$

Curr tax (Cr) (0.4)
Provision(calculated) 10
DT transfer (w1) 7.5
——————————-
I/S 17.1

(w1) —> working on DT
Opening 11.2
I/S transfer (b) 7.5
___________________
Closing 18.7

[svetla]

Also Q13. Am I right in my calculation&
Curr tax (Cr) (1.2)
Provision 27.2
DT transfer (w1) 3.2
——————————-
I/S 29.2

(w1) —> working on DT
Open(given) 6.2
I/S transfer 3.2
(balancing figure)
___________________
Closing(given) 9.4

so adj: Dr CT 3.2 Cr DT 3.2 and Dr I/S 29.2 Cr CT 29.2

Mike, pls help me. Is that correct calculation? And recomend some articles to read on DT. As for me I’m totally lost in CT & DT theme.

[svetla]

I went throught Opentuition Revision notes and found there answers on all my quesions.
Thanks!

[svetla]

I’ve got it. Thank you!!! You’re the best 🙂

[svetla]

Some more question:

1. A company has just paid a dividend of $0.23 per share.
Shareholders are expecting the dividend to remain at $0.23 per share next year, but to increase at an average rate of 3% per annum thereafter.
Shareholder rrequired rate of return is 12%, and the rate of corporation tax is 25%.
Correct answer is $2.56

First, I’ve used Growth model: [0.23*(1+0.03)] / (0.12-0.03) = $2.63 ((((
but than I’ve recalculated by taking into account that tax of 25% and no growth rate:
0.23/(1-0.25) =0.3067 and divided by 0.12 & got = rounding $2.56/

So is it a trick not to take into account that 3% growth?

[svetla]

It is strange, but in online version of MCQ I’ve got this question:

PQR has a demand of 7,500 units per month.
Each unit costs £5
Ordering cost is £100 per order.
Holding cost is 10% of purchase price per year.
Lead time is 30 days between placing an order and receiving delivery.
Whats the EOQ?

I’ve also thought that lead time is irrelevant in computation and the answer should be 6,000 units, but after submiting answers computer showed me the correct answer as 7,397 units 🙁

And I’ve also found 1 more question on the same text. It was asking:

‘If they order the economic order quantity each time, how frequently will they place an order (to the nearest day)?
Correct answer is ‘every 24 days’

Could you help me with it? Thanks)

[svetla]

Hey guys,
Does anyone HAVE books Kaplan F7 & F8 2012? THNX and good luck!

[Author]

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