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In Q1b, we were just supposed to calculate Asset beta of that 1st company right? And no bond was given directly. So we had to find the value of the bond using the yield rates and the 6% bond information right? Can you guys tell me if that is the way of doing Q1b?
And for the cost of capital we had to use the combined asset beta right?
I think the Asset beta was around 1.135. This is after calculating the yield rates and getting the PV of the bond using that 6% bond.
Cost of equity was 8.8. I left the cost of Debt part.
And in Q2 Forwards and Futures was close to 3.9% effective rate. Collars too were close to that I feel.
Anybosy else?
Anybody remembers the answers they got?
I think Q1 the WA Cost of Equity was around 8.80%.
Anybody else with the same answer?
Did anyone get a negative APV?
In Q2, I got the basis also in negative. Anybody? The spot rate was lower than futures I think.
Thanks a lot sir. I got the point now. Will also go through the F2 lectures to get a better clarity.
Thanks a lot 🙂
Will surely go through the lecture on foreign investment appraisal.
@raoul7370
Can’t there be 2 different risks under intangibles? 1 being the R&D costs not being capitalized accordingly. And the other being amortization with a definite life. I think the Question said the software or something was amortized for a period of 15 years. And as the Co dealt with innovation, 15 years was way too long and so the amort expense being understated?
And also regarding the redundancy provision which you have mentioned. Can’t we say the provision being under disclosed and as a result of that profits being over stated?
Can’t there be 2 different risks under intangibles? 1 being the R&D costs not being capitalized accordingly. And the other being amortization with a definite life. I think the Question said the software or something was amortized for a period of 15 years. And as the Co dealt with innovation, 15 years was way too long and so the amort expense being understated?
And also regarding the redundancy provision which you have mentioned. Can’t we say the provision being under disclosed and as a result of that profits being over stated?
Totally agree. It was a very lengthy paper. But do anyone of you remember the audit report in Q2?
I dint have time to read the full question. Just read it in parts and wrote the answer. I got the Leases one as a Qualified Opinion, the second one was Emphasis of matter paragraph and the 3rd one again being Qualified Opinion.
Anybody?
Q1 I wrote the Government funding as a weakness. Thinking there would be competition with FLC. As per the data they were also into public funding and the figures were on an increasing trend. So I thought the government funding would affect that. I’m not sure if this is correct though
Q4 – I think the competition for new entrants was tough cuz the big three were dominating the market. Also there were these groups who were encouraging home food or something I believe.
Existing competition, suppliers, customers and substitutes were a little straight forwardWas the difference in net assets list in negative for Alston? I got something like -6 I guess.
And was the goodwill for Plymouth somewhere close to 70?Was the answer for Q1b relating to 6 capitals? Does anyone remember by any chance?
In Q31, was the Inventory days for the year 2015 – 206 days?
And in Q32, as there was a deferred consideration, we do consider unwind amount in finance costs right?
I’m not sure about that. There was a substantive question in the 30 marker regarding Trade Payables.