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Good day Sir
I am worried about the time pressure on this question. It felt like the infomation in the senario was all over the place. The answer its self is 5 1/2 pages . How can i improve on time if a similar question comes.Firstly, this question was set 12 years ago and the examiner has changed twice since then. The current examiner is very helpful in the way that the scenario is presented and the information is less likely now to be ‘all over the place’.
(If you watch the free lectures working through several recent Question 1’s then you will see what I mean by this – you can find them by following the link to ‘Revision notes and past questions’ from the main P4 page.)Secondly, you are not expected to write as much as the examiner does in his answers. He always makes this very clear, but he writes a lot because he knows that students learn from his answers. (Having said that, the current examiner writes a lot less – never 5 1/2 pages 🙂 )
And how exactly would you calculate a WACC since there is no mention of any borrowing?
Hi John, why do they use the cost of capital of Terranian at 15% when the NPV has already been converted to Sterling.
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