P5 Advanced Performance Management APM(3.3)
Andrew Pang (KSA)
Chow Kim Tai (OIC)

I attend both for P5 (NC+RC for Andrew, RC for Chow), can give some comment.

Andrew - Very fast in calculation technique, can save a lot of time during exam. But Andrew won't touch theory too much. Normally in the class, he just explain theory in simple way and read the answer for student.

Chow - Provide very good & systemathic notes for this paper. His explanation more detail than Andrew for both calculation and theory oso. But Chow method more step to go, it not so fast as compare to Andrew.

Two lecturers oso cover calculation more than theory, so may be you need give more time on theory la. But you no need to worry too much for theory part cos a lot of P5 theory are general knowledge, some of topic like Performance Evaluation and Assess Performance need to base on calculation to comment the answer.  But I need to tell you oso, P5 got relation to P3. A lot of P3 biz model like SWOT, Portal 5 force might test on P5 oso. So do your go job in P3 b4 go for P5.

Well the lecturers you mentioned don't have acca per se & not really governed by acca code of ethics.
Perhaps their law code of ethics ?
Competition does breed out efficiency.
Anyway i agreed on your sentiments that their action should speak louder than their words.

they are jus trying to be nice and helpful. why shoot them down like that 1. i dont understand you people, sorry to viknes and sanjeetha for such stupid students saying things like that to your. 

i aso think student shud not comment like tat bout lecture. respect. they are jsut helping. we are only student and must respect.

i also dun mind lecturer participating in this forum..Perhaps tis forum can be subset to create only lecturer-student interactive..so any questions can be forwarded to a lecturer..in any college..maybe tis is what we called free market.and it works by when especially near the exam or even now, student can ask lecturer (any college as long any lecturer can join this forum) any questions..and the respectively lecturer able to answer it.. i visited many acca student  - lecturer  forum i.e. FTC( FTC4SUCCESS),BPP, accaforum, opentuition, etc which that forum encouraged student to ask questions to the lecturer..FOC..apart attending class(because not 100% we can always ask in the class)..
btw, sanjeetha was a student at ATC before in 2004 if im not mistaken,

The conversion should be around RM5.10-RM5.30

How did you all achieved the performance objectives in order to make the annual return?
Should I pro-data the nine essentials and at least four options (that is total 13 objectives need to be achieved) into appox. 3 months time for each objective so that I can fulfill the 36 months work experience for admission to ACCA membership?

I think I have more than 3 months work experiences for every role required by ACCA and I am curious how the ACCA calculate and accumulate our working experiences into 36 months; because if we add up all the role experiences definitely exceed that 36 months time frame...

Kindly share your though 

Let's say as a 3rd party discounting  perpetually at 3% to value the entity.

RM20/3% = RM666.67
Rm26/3% = RM866.67. 

That is teh reasoning behind why they argue a value of a firm increases with gearing.

Again, the present credit crunch is a good lesson why not to believe it, and why M&M is actually a stupid idea. However, M&M is so stupid, that it's useful, because it fails on so many grounds, yet make sense while doing it. It's weakness is what educates ppl

The main difference is what it is looking for.

Keg = cost of equity
Vg = value of the entity.

Both are actually highly similar, and if u substitute Keg into the calculation of the present value of an entity assuming no change in cashflow, what you get should be Vg.

In short.

Vg = NPV of entity discounted at Keg
Vu = NPV of entity discounted at Keu

I would like to ask one more question. Hope you dont mind answer it because i will ask on different formula of Miller-Modigliani Model (with tax). I really need to clarify this for my upcoming ACCA exam in P4 paper.

What is the differences between the formula:-

Keg = Keu + (1-T)(keu-Kd) Vd/Ve  Or WACCg = Keu x [1-(Dt/Vd+Ve)]

with this formula :-

Vg = Vu + [1-(1-Tc)(1-Te) / (1-Td)]B
where Tc = corporate tax rate     Te = tax on equity income    Td = tax on interest income
B = Borrowing


Is this the same formula? What is the reason behind these formula?

For the valuation or cashflow projections of projects involving financing, we need Keg to calculate WACCg, because your goal is to get the NPV of that specific project. Vg on the other hand is a 'broad' formula for the assessment of an entity. Entity =/= project.

You can argue however, that NPV can be derived using V before project and V after the project, however again, that would be far too complicated, so Keg is often the direct way of figuring out the WACCg for the calculation of NPV/APV or Risk-adjusted NPV, whichever you are doing...

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

WACCg = Keu x [1-(Dt/Vd+Ve)]

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)