[yijiayap]

@soni23 said:
Plus what about IRR and ROCE mcq. I marked yes for IRR and no for ROCE

Npv 63.3m. For roce and irr, that one I don’t rmb. I am sorry.

[yijiayap]

@soni23 said:
Was it bank loan rate and did we have to multiply with (1-0.3) tax rate? I got 6.8
8.5*(1-0.2) can someone confirm if it is right?

But my cost of equity gt wrong. Yes cost of debt of bank loan : 8.5(1-0.2)

[yijiayap]

@omz86 said:
I had a wacc of around 7.3%
Cost of equity= 49×1.05/7.26 -49 or something
MV of equity = 15/0.5 x 7.26

Cost of debt= 6.8% using interpolation and irr
MV of loan notes=10000000/100 x94

Cost of bank loan= tax relief so 6.8% as well
Book value= 5m

Feel free to correct me as to where I wwant wrong

Same here. Approximately.

[yijiayap]

20×7 b/f 30 Sep 20×7: 1400
Compare to this year 20×8: 4680 (assume)×26%= 1217
Overprovision: 1400-1217=183
PBT: 4680 (my answer)
Income tax expense: 1400-183+390=1607
Profit for the year: 3073
Other comprehensive income:
Gain on revaluation of property: 3500
Fair value adjustment-equity instrument: 200
Total comprehensive income: 6773

Not sure about it, revaluation is at the end of the year right? Do we need to charge extra depreciation to COS? I didn’t charge.

[yijiayap]

Percentage completion of WIP overestimated
Total cost / total EU = cost per EU
eg. overestimated- 8000/9600=0.83
correction,total eu fall -8000/9000=0.89, cost per eu increase
total cost of output = completed unit*cost per eu
cost per eu increase, total cost of output also increase.

[yijiayap]

But the question ask for the effect of correction of the error.

[yijiayap]

FIFO means whenever inv i bought first, these inv will go out first instead last inv, last inv will be kept in cs.
Profit figures
1. 200
2. 300
But what does product costs mean?

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