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Also, @junaid98 *I think* that you should only be marked down once for an incorrect calculation.
So any comments and further calculations gain marks if they are correct but based on an incorrect calculation.Well I certainly hope so…
@katiewebb in Sec C qstn 2 part a or first part were we supposed to calculate gearing using book values or market values.
@HJohns I can’t fully remember the question but I’m sure it didn’t mention market value so I done the book value? How about you?
@katiewebb I did the market values. I used the market values given on rights issue. I think market value per share was $1.20. Book value per share was $0.5. There was also market value of debt (mkt value per 100 of bond) but I can’t remember the market value of each 100 bond. But I know I did the wrong thing because someone said the question was similar to the one in the December 2023 mock and book values were used.
@crapants, my mind has gone blank on the TAD part, I don’t remember the wording of the asset value.
But why would there be TAD on the depn, it was a not for profit organisation. So for the lease I didn’t include any tax payments. So why would we do WDV for year 4 buying the asset
But I think your answer is right because you had a 4k diff which makes sense when doing buyvlease. There was always a small diff not a massive diff.
@crapants, did you get a WACC question too?
@junaid98 I think I am confusing the matter.
There was no tad, as you say it was a not for profit organisation.But the way I read the question was that the value on disposal of the vehicle, in year 4, would be equal to the depreciated value at this point.
I am now doubting my reading of the question was correct.I did get a wacc question but had left little time for it and rushed through.
I managed to work through to get an answer that was around 13%
I’m just hoping to pick up some marks on the second part of section c@HJohns tbh by the time I got to that question my head went blank and I sat there for about 20 mins before I attempted the questions so I believe I completely messed it up. I know I done well on the npv question found it quite simple but the nominal and real rate I think I spoke about them the wrong way around and section a and b I done poorly so believe it will be a resit first out of 5 and gutted never felt I done so poorly in any of my other exams
@crapants, I see what you mean, it could have been that but just don’t know why would they ask that when it’s NFP. If they did just a stupid requirement to see if we can do the calculation I guess.
Your WACC was 13% should be right, I got that too, there was CUM div for ordinary shares and if I remeber they slipped in 20×7 instead of doing 20×6 for ordinary shares, remember any of this ?
@crapants, also within the WACC there was share redemption, I didn’t take the share option I used the nominal loan note value instead
For the WACC calculation, who used nominal value of loan notes instead of the share option?
@junaid I was running out of time and knew I didn’t have time to calculate the share option so just ignored it.
Not great but it meant I managed to finish my WACC calculation.
Also I cannot remember if I used market or book value for the debt and equity.My brain was pretty done by that point. Fingers crossed for a pass.
I had the same section C,
Did you get that AgeAid purchase PV was cheaper? I did but the the next question seemed to imply lease was cheaper
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