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fundamental too, but I just guessed, no idea if it is correct. Was tempted semi strong efficient.
an ques number 1 was 3.50 thats sure.
Ya I guessed as well!
Semi-strong seem like wrong, because text book and lecturer’s note stated that it can not earning abnormal return…
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@wayhern said:
Semi-strong can not earn abnormal return if I not wrong, regarding text book and my lecturer’s note…yes i guess so. u can only earn those returns from historical data if the market is completely inefficient.
but I never heard about the others before. I googled searched fundamental analysis not sure abt it.
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Got many C’s too. But was uncertain about the answers.
it’s neither semi-strong form nor fundamental analysis.
but technical analysis. i’m pretty sure.Hi Guys
Anyone remember the question on MCQs where we had to deal with a convertible loan. And it gave us a before tax cost of cap of 6% and an after tax cost of cap of 9%
Which one where we supposed to use. I think the answers where $97 and €107 approx ??? Please tell me I used the right one – thanks??
@mcparland20 said:
Hi GuysAnyone remember the question on MCQs where we had to deal with a convertible loan. And it gave us a before tax cost of cap of 6% and an after tax cost of cap of 9%
Which one where we supposed to use. I think the answers where $97 and €107 approx ??? Please tell me I used the right one – thanks??
if i remember correctly after tax cost of capital was 6% and before was 9% so you should use before tax cost – 9%
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hey you seriously got soo many A’s???i got soo many C’s…but the paper wasnt that bad…it was well balanced…where are you doing ACCA from??? are you doing any other paper??
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can you remember what question it was???as in the question number!!!
Guys in question 5 part about rights issue. Did anyone talk about, time, gearing, and share prices? 🙁
i mentioned gearing goes down, eps as well. As gearing goes down company more attractive to investors, on the other hand equity more expensive as shareholders needs there return as they are risk bearers and paid last. I mentioned a little miller modigliani too. And maybe I mentioned rights issue doesnt make you lose control, i forgot.
About that question I didnt do the Wacc book value 🙁
I said if the existing shareholders dont have confidence in the company due to high gearing they may pass on the rights issue and then the shares will be sold to other people on the stock exchange, therefore the company could partly lose control as the shareholders would be diluted and far more spread. Waffley assumptions but is this correct?
No.idea actually as i talk a little about time in that they will go for the rights issue of they need now for liquidity problems, a company will go for equity finance if the share prices are high and of course financial gearing id also a reason for equity finance.
I agree with all of you, I studied the complete text, I think I was well prepared, but I didn’t recognize half of MCQs at all… This is not fair, or did I study with the wrong books??) The complete text needs to be revised for the summer session.
From what year were the price/cost to be inflated?
I started inflating from Year 2 onwards, based on the Year 1 figures. (Because there was no mention of the figures being on “current price terms”)
The question was very much silent about this.
@kenzochin said:
Guys I think for Q5 to calculate the cost of equity, the equity risk premium has already been multiplied by the beta value there for it is called Equity risk premium, we only need to multiply the beta value if they had given ‘risk premium’ instead.Finally! Someone who thought alike about inflation.
Correct! You multiply the risk premium with the beta factor which gave a cost of capital of 10.9 if i remember correctly
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