Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › Moonstar
- This topic has 5 replies, 2 voices, and was last updated 5 years ago by John Moffat.
- AuthorPosts
- July 28, 2018 at 3:22 am #464944
hi
i had a look at the suggested answer an i cant figure ot where did they get 9.4% and an 14.4% reduction .
Also the vale of 18.83 is arrived from 20.90 – 2.07 right so that will be the balance of TOTAL A+B+C loan?
Would the seniority rank changes if now that the return for sub is 11.5%?
So the order would be:
A
Sub
B
—-
C will be the residual?July 28, 2018 at 9:07 am #464963Please tell me which year’s exam this question was in (I can’t remember the name of every question 🙂 )
July 30, 2018 at 7:12 am #465206hi its Sep/Dec 2015 Q4
July 30, 2018 at 7:37 am #465216Currently the income (before service charge) is 22.00M.
For the subordinated certificates to get nothing, the income (before service charge) would have to be lower by 3.17M (which is 18.83M). This is a fall of 3.17/22.00 = 14.4%
The ranking does not change – the subordinated certificates always get whatever is left after paying the others. This might be higher or might be lower, depending on what the total income is.
July 31, 2018 at 3:04 am #465346oh okay… thank you i understand so much now. I asked around for answer but none could do it like you. You’re the best!
July 31, 2018 at 8:17 am #465378You are welcome (and thank you for your comment 🙂 )
- AuthorPosts
- The topic ‘Moonstar’ is closed to new replies.