Ok, now here have some complication...

What is the different between this WACCg = Keu x [1-(Dt/Vd+Ve)] and this formula WACCg = Keg*E/(E+D) + Kd (1-t)*D/E+D?

Sorry.. i ask to many things.. coz i need to fully understand somethings...

---

Added on March 19, 2009, 10:37 pmOk... so, this formula Vg = Vu + [1-(1-Tc)(1-Te) / (1-Td)]B is actually an APV model rite, am i correct?

If yes then i agreed with u coz from what i learn from mr micheal, the APV is complicated measurement than Risk adjusted NPV...

I heard u have finished studying ACCA from this forum, are u working in finance?

This post has been edited by gecodine: Mar 19 2009, 10:37 PM

hello.. anyone here wanna buy P3 text book (Kaplan)?

The Keu formula is the formula of deriving how much reduction in cost of capital when we take up a debt.

THe keg + kd formula is merely a weighted average method of calculating WACCg. Both achieve the same goal, but different ways of getting there.

Keg formula is used if there's normally no change in gearing, whereas Keu formula is used when there is a change in financing and yet for some weird reason you are not using APV. (which is why i personally rarely use the Keu formula)

---

Added on March 19, 2009, 10:37 pm


APV is actually just a term of separating out the financing effects of a project for calculation.. Generally thoough, you can say it is a APV calculation.

Btw mr michael was my lecturer too hahahaha

Thank you very much... Now i am not confused anymore with these formula.. Thanks again..

Hahaha, no problem. Sorry if I somehow gave you a wrong advice though, because I doubt all my points are accurate hahaha.

Those equations are scaring me T-T.....that's in ACCA right? It looks kinda difficult to understand...

That is P4 one of the 4 advance paper in acca. Don't worry you will ony reach this paper in > 2 yrs. You can also choose to avoid this paper all together as you are only required to choose 2 out of the 4 optional paper.

Hhahaha, don't let it intimidate you, ;p P4 is very interesting.

One more question,

So, it can be considered that this formula WACCg = Keu x [1-(Dt/Vd+Ve)] is also the same with APV method? am i correct?

Erm, I can't say whether it's an APV method. I know it sounds weird, but generally, I don't use that formula, so I don't know in detail how it works when the calculation is actually performed. I've always stuck to using APV instead because I find it more consistent.

APV considers the timing of financing cashflow separate and distinct from operational cashflow. Using the WACCg = Keu formula as a shortcut for APV would not be the same, BECAUSE the timing of financing cashflow is usually different from normal project operation cashflow.

Under some circumstances, using the WACCg formula to account for the financing effects of gearing would be considered logical, however, most of the cases, it is best to stick to APV. Hahaha, so at the end of hte day, you still need to do APV if the financing side of the project is horribly complicated. (ie, strange payment schedules for financing, restrictions etc)

Ie, ultimately, just use the project WACC without the financing for the project operations cashflow, and then calculate financing separately...

I guess it doesn't answer your question, eh?

Anyway, there's a way to test whether what u say makes sense or not. Try to make a rhetorical question, and attempt them using APV, and then also attempt it using the Keu method. If they both give u the same result, then u have ur answer ;p If they don't, then i guess you have to consider it separately...

This post has been edited by ThanatosSwiftfire: Mar 20 2009, 06:05 PM

they do publish it in the student accountant? I havent seen any list published so far, after >1 year in ACCA. Only the top CAT (highest overall in some CAT papers) and ACCA( highest aggregrate in P123) are there right? Pls guide me to it if there is any.. Just received my March 09 issue.

f6 MYS.. honestly, i dun have that high hopes to get the prize, but my lecturer thinks if im lucky, i might get the msian prize, so she asked me to keep an eye for it and pray hard. I'm too scared to ask her if i got the prize because, she has too high an expectation on me, and im afraid to disappoint her, so had been avoiding her lol

Are there any part time CAT programmes available here?

Anyone studying in Sunway University College CAT March intake now?

ya they have not publish yet,acca will also inform u via post if u got a prize,but not sure when..

i am not sure about part2 papers,but i know p1,p2, p5(i forgot) and p7 prize are from sunway,which college u are from?i thought the lecturer is suppose to know the list first before their student get to know?hmm..will try to ask for u if i happen to see my f6 lecturer k..or maybe u can try to call up acca malaysia hotline to ask?

This post has been edited by winongcf: Mar 24 2009, 04:37 PM

Greetings,

Im retaking F5 on self-study base this exam. To me this paper is a killer paper. As most of the time im not sure about the question requirements. Any sifu from F5 have tips on which topic to focus on and how to tackle this paper ?

Traditionally, the costing papers have below than average passing rates, ranging from CAT T4, T7 and F5. The two papers in CAT can be a passable one if one has a basic understanding of the concepts involved, and also the ability to produce simple calculations. After all, there is greater emphasis on the calculation aspects in the lower levels.

Paper F5 however requires a different approach. While still placing reliance on some computations, candidates are now required to give simple reasoning for the circumstances in the case. Technically speaking, if you know why you compute something, then it helps in answering the theory parts. Even if the questions were so horribly twisted.

Cover all the topics. Do not ignore discursive parts of the question.

I was told that F5, whilst computationally easy (and I agree once I saw the questions), i believe the main points, as raised by allornothing, is in the discussions, and for me, establishing a clear idea of what's going on coherently, (aka point at bottom don't contradict point at top)

I think the problem with F5 is that it is considered to be easy in to be included in professional level but seems al little too difficult in lower level so it was pretty much caught in the limbo. A friend of mine after attending P1 & P3 class felt like the knowledge she gained there facilitate easier preparation for F5 compared to precedent knowledge in T7 in CAT.

I think this problem in F5 was caused by student mentality as well since other papers in lower level also carried some predictable questions every sitting : If you answer these area well you are practically pass already.
F4 = Half is consist of company law & social / biz law
F6 = Tax is always comes with company tax, personal tax & some tax admin
F7 = Consol, ratio / cash flow & published a/c
F8 = SP or TOC & some audit procedures stuff
F9 = Hard to predict but major topics around 5 & exam ask around 3 or 4 so its also quite predictable.

With that in mind F5 students carried with same assumption that if you have read / covered that chapter & if it does come out you can practically scored as syllabus in lower levels are quite general. Come to advance level everything becomes very speciifc & detailed so even if you cover a topic but inside that topic there is multiple things to be tested. F5 works with similar way.

Wah, you can become ACCA consultant already since your explaination very detail for every question ask.

should i work part time and go for acca part time?