Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › blipton international
- This topic has 5 replies, 2 voices, and was last updated 5 years ago by John Moffat.
- AuthorPosts
- February 14, 2019 at 8:05 am #505084
Hi John,
I’m doing this question from the bpp kit.
How in the world did they come up with the revenue of 60 pounds (30 pounds +100%)? I can see nothing in the question that suggests this approach.February 14, 2019 at 3:13 pm #505120Note 5 of the question says that room rates are variable cost plus 100% !
February 14, 2019 at 5:02 pm #505133oh yes, did see it. My bad! Can you please also tell me why we have discounted the dividend payment using the risk free rate of interest?
February 15, 2019 at 8:16 am #505178I am looking at the original exam question (from December 2008) and there is no mention of any dividend payment.
You are obviously using an older edition of the BPP Revision Kit (the current edition does not include the question Blipton) and maybe they have changed the original exam question. However, given that I only have the current edition, I have no way of knowing whether or not they have changed it.
In the original exam question, it is the remittances that have been discounted and they have been discounted at the nominal (actual) cost of capital, which has been calculated as normal using the Fisher formula.
February 16, 2019 at 5:22 pm #505386oh okay. This question is in the latest version of Kaplan kit. Pretty convoluted i must say.
February 17, 2019 at 10:13 am #505459Sorry I can’t help, because it sounds as though Kaplan have added their own bit to the question (and I don’t have the Kaplan Kit – only the BPP Revision Kit. Mind you, your first post said it was from the BPP Kit 🙂 )
- AuthorPosts
- The topic ‘blipton international’ is closed to new replies.