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ennea

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › ennea

  • This topic has 1 reply, 2 voices, and was last updated 8 years ago by AvatarJohn Moffat.
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  • November 19, 2017 at 4:27 am #416540
    Avatarshilpamary
    Member
    • Topics: 98
    • Replies: 81
    • ☆☆

    q 50 ,ennea bpp revision kit ,in explanation of figure proposal 3 how did we get $2.318. $2m profit , $25 * 15% ,non current liabilities is 27 to be paid off 27 * (6 -.15 ) am i right or wrong
    ?

    2) in eps calculation ,proposal 1 is it correct to compute the interest on additional borrowing $20 m* ( 6 + .25) %

    November 19, 2017 at 9:54 am #416595
    AvatarJohn Moffat
    Keymaster
    • Topics: 57
    • Replies: 54845
    • ☆☆☆☆☆

    The reduction in investment will lose 3750000 (25M x 15%). The interest saved is 1432000 (1296000 + 136000). So the net loss is 2318000.

    (2) – yes that is correct

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