Hi sir
In the b part 1 of the question are mentioned fixed borroiwng rates and bank plus rates
In the examples in the course notes you demonstrated to subtract the difference of the 2 fixed and borroiwng
As in this question 5.8%-4% and BANK 0.6%-0.4%
1.8-0.2 = 1.6% /2 and B. Co would get 60% of benefit in total so the resultant should be =0.96
But in the mark scheme answer it is 1.2
Because they have added the 2 differneces of bank rates and fixed rates
Csn you please explain why?
Ask the Tutor ACCA AFM
Buryecs co mar/june 2017
Sorry sir
I got it i think so
In your examples if we do by the mark scheme way
We get the transfer amount directly so it is easy we just have to decide on tbe opposite borrowings of each company and interest payments but the transfer amount is directly calculated
Every question is so hard unlike f9 in where there were same pattern questions
6y ago#2You are correct.
(And yes - Paper AFM is a lot harder than Paper FM because it is much more testing understanding and application rather than just learning rules.)
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