- November 22, 2015 at 6:45 pm #284638MiguelMember
- Topics: 38
- Replies: 30
Question 2: Why in the cost of investment is needed to divide the cash for Suzanna 2 times per 1.1 (18,0000,0000 x 2.42/1.1/1.1)?
Question 3 : How do you get the figure from the ret. earnings b/f , I mean it says that for the year ended 30.4.10 the ret. earnings were 6.5m but I don’t see any other detail that can give a hint for the figure included in the answer of 3.5m. As well why the SNA @DOA are multiplied by 60% if we have done that while getting the cost of investment?
Question 8: Why in the answer is added a 2 in the ret ears 6 months?
Question 9: From where are the Sh. of 8k and the ret ears of 16,5 k taken from, I can’t find go to get to that figure.
Question 12 The price of the share is missing right of $3?
Question 14: why in the cost of investement and in the NCI there amounts are multiplied per 2? As well where is the data regarding the shares & ret ear coming from? Because I was not able to get unfortunately.
Thank you for the clarification.
Cheers!November 24, 2015 at 12:20 pm #284886MikeLittleKeymaster
- Topics: 26
- Replies: 22706
Q2 – because we need to find the PRESENT VALUE of the $2.42 cash payment, two years into the future
Q3 – retained earnings at the end of the year were $6.5m and the profit for the year was $3m …… so now ask yourself “What were the retained earnings at the start of the year if retained earnings in the year were $3m and at the end of the year they were $6.5m?”
Q8 – because $21m profit in the year is after deducting a half year’s loan interest of $2m. So to find the pre-loan interest profit, we need to add back the $2m to arrive at $23m. Now divide by 2 to arrive at the profit made in the first 6 months = $11.5m pre-acquisition. Same for the second half of the year. Now take the loan intest off the second half of the year to get $9.5m post-acquisition
Q9 – information missing from the question, sorry. If you want to try the question with full information, it’s from the F7 June 2010 exam I believe
Q12 – share price information is there for you. It’s not clearly stated, but it IS there
Q14 – this is a question from the F7 December 2013 exam. The information is missing but, from memory, the nominal value of the S shares is 50 cents
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