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pursuit co 6/11

Forums › ACCA Forums › ACCA AFM Advanced Financial Management Forums › pursuit co 6/11

  • This topic has 5 replies, 2 voices, and was last updated 10 years ago by John Moffat.
Viewing 6 posts - 1 through 6 (of 6 total)
  • Author
    Posts
  • November 13, 2014 at 9:48 am #209556
    student07
    Member
    • Topics: 193
    • Replies: 162
    • ☆☆☆

    Sir could you please tell me where the figure operating profit coming from i know year 1 is 5479 when we take 6% of 5169 n add the increment but what about year 2,3,4 its coming as 5808,6156,6525 . Thanks

    November 13, 2014 at 10:11 am #209574
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54701
    • ☆☆☆☆☆

    In future, if you wish me to answer then you must ask in the P4 Ask the Tutor Forum.

    If it is 5479 at time 1, then add 6% of 5479 to get the time 2 flow.

    5479 x 1.06 = 5808

    5808 x 1.06 = 6156

    and so on 🙂

    November 13, 2014 at 10:37 am #209583
    student07
    Member
    • Topics: 193
    • Replies: 162
    • ☆☆☆

    Sir in the same question while calculating asset beta of combined cimpany from where did the figure 40.095 came. Asset beta of combined company is (0.686×140)+(1.417×40.095)/140+40.095. I canmake out other figure but how did we get 40.095. Thanks

    November 13, 2014 at 3:18 pm #209638
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54701
    • ☆☆☆☆☆

    It is the firm value (present value) as calculated in the previous section of the examiners answer “Fodder cash flow and value calculation”.

    Again, please do not ask in this forum if you want me to answer – ask in the P4 Ask the ACCA Tutor Forum.

    November 13, 2014 at 3:28 pm #209645
    student07
    Member
    • Topics: 193
    • Replies: 162
    • ☆☆☆

    Thank you sir, and sorry i thought i was writing in ask the tutor form only.

    November 13, 2014 at 4:16 pm #209776
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54701
    • ☆☆☆☆☆

    No problem 🙂

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