November 1, 2014 at 12:00 pm #207088cardineParticipant
Please help me with these question(s). I worked them and did not get the answer on the net. Maybe I have missed the main point(s).
The questions are listed below:
I am not able to post questions, when I to copy – after reviewing answers; it not interfacing and you’ll draw a different sets of questions after re-entering.
It is not possible to copy the questions before are after you have completed the test. I have tried many times. There are some questions in the test that gives contrary answer(s) to the question; one such specific is BI Co who has 8% bonds and taxes is to be ignore. Market value is given as 86 & we’re to calculate the cost of debt to the company – BI
Please revisit and assist.
November 1, 2014 at 1:57 pm #207096John MoffatKeymaster
Although I will answer you, please in future ask in the F9 Ask the Tutor Forum if you want me to answer – this forum is for students to help each other.
The page before the test makes it clear that each time you take the test you will be presented with different questions. While you are reviewing your answers the question appears each time and at that stage you can copy the question and post it in the forum if you need the workings.
The question you refer to does not give contrary answers.
In one of the questions it asked for the return to investors (and only says to ignore personal tax). The investors receive the full coupon rate of 8 p.a. and therefore the return to investors is 8/86 = 9.30% (the debt is irredeemable).
The other question has the same information but asks for the cost to the company. The company receives tax relief on the interest at 25%, and therefore the cost to the company is (8 x 75%) / 86 = 6.98%.
You might find it useful to watch the free lectures on calculating the cost of debt and the return to investors 🙂
November 1, 2014 at 4:26 pm #207112cardineParticipant
I tries to copy the question(s) at the stage of reviewing answers. Only at this stage I will be aware that my answer(s) are incorrect. When I try to select and highlight the question nothing happen.
You are correct; It is evident that I read the information incorrect and this this is the reason for me failing repeatedly. I my country the new ACCA materials are not yet available and I have to be using my old text and this medium.
Thank you for you help and I thought I had selected the F9 forum.
November 1, 2014 at 6:55 pm #207126John MoffatKeymaster
You are welcome 🙂
If you are watching our lectures (with the Course Notes in front of you) then you don’t really need the Study Text. It would be useful if you could get hold of a new edition of the Revision/Exam Kit – you can order one online, either a printed version to be posted, or an online version that you receive immediately. The reason is because of the change of format of the exam – the new editions have lots of Section A MCQ questions as will as lots of Section B type questions.
You had selected the F9 forum, but there are two forums for every paper. The Ask the ACCA Tutor forums are where you can get help from the tutor. The other forums (like this one) are to get help (and give help) from other students 🙂
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