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
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11y ago#1In 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 :-)
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
11y ago#3It 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.
Thank you sir, and sorry i thought i was writing in ask the tutor form only.
11y ago#5No problem :-)
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