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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › Dec 08 Q1
When reading a question like this, I find it difficult to figure out the “before” and “after” point. E.g calculate TERP prior to investing in the project;or, share price following the expansion. .
I am not sure I understand the problem.
The TERP is the theoretical ex-rights price, which is always the price ignoring what the company is going to do with the money. The examiner was actually helping by saying ‘prior to investing in the project’ – he didn’t actually need to say that.
‘Share price following the expansion’ does seem clear – again I am not sure what the problem is.