Finance and Accounting

at Maastricht University

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Hey Julia :), An increase in accounts payable indicates that purchases exceeded cash payments made. As a result, the increase in accounts payable will be added to cash payments in determining the cost of goods sold. An increase in inventory, on the other hand, indicates that goods sold were not as high as goods purchased. As a result, the increase in inventory will be deducted from the amount in determining the cost of goods sold. We hope we could help you :) Your Success Formula Team - Florian
@sofie rwacc= (E/E+D)*re+(D/E+D)*rd(1-tc) --> this is the formula for the after tax wacc, this it also takes your tax shield into account rwacc= ru+(D/E+D)*rd --> this is the pre-tax wacc, it is usually associated with MM's perfect capital markets because taxes do not exist in such markets re=ru+D/E*(ru-rd) --> with this formula you can calculate the cost of levered equity (re) with the cost of unlevered equity (ru) plus the debt to value ratio times cost of unlevered equity minus cost of debt (rd)
I'm counting on everyone to help me raise complaint... the exam was fucked up
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Shouldn't the reasoning for Q30 be "..gives the HOLDER the right..." not the writer? cheers & thanks for your explanations!
It's better to say buyer but holder is just as acceptable
Hey, how do you get to answer d? Thank you in advance :)
Hey, can anybody explain why and how you get to that answer?
Hey :), Since you only focus on unreal holding gains reported in the Income statement (not OCI) --> only look at trading securities! DEF: 11 500 = 59 500 - 48 000 GFH: 30 000 = 77 000 - 47 000 IJK: - 5 500 = 38 500 - 44 000 ______________________________________ Total: 36 000 As a result, it should be C. We hope we could help you :) Your Success Formula Team - Florian
Hi! Could anyone help me solve this question from last year's resit ? The answer is C
Hey :), One always estimates interest expense/revenue based on the carrying amount of the bond (in this case = 95 000 --> 100 000 (Face Value of Bond Pay) - 5000 (Discount)) As a result, 95 000e * 0.07 = 6 650e for the whole year. Which should be Answer C. We hope we could help you :) Your Success Formula Team - Florian
if the bond starts paying interest on March 21 2017 and they are asking us about the interest recogized for 2016, why isn't it zero then? it's answer c. How do you get there?
Hey :), One always estimates interest expense based on the carrying amount of the bond (in this case = 255,369,000e) As a result, 255 369 000e * 0.06 = 15,322,140e for the whole year. However, we only account for the time from Oct till End of 2016 (31st of Dec) --> Three months 15,322,140e *3/12 = 3,830,535e Which should be Answer C. We hope we could help you :) Your Success Formula Team - Florian
Can someone explain that to me or where it is stated?
Hey :), Debit Credit Bad debt expense XXX Allowance XXX (Initial anticipation of customer defaults) Allowance XXX Acc rec XXX (Actual write off based on customer default) As a result, bad debts expense is measured indirectly (Based on estimates), and the allowance for uncollectible accounts balance is measured directly (when an acc. receivable is written off). We hope we could help you :) Your Success Formula Team - Florian
no matter what I do, I don't get the right answer, which is a. Does someone know how to tackle this?
Hey :), (650 000 - 10 000) / 8 = 80 000 2 years of dep --> 80 000 * 2 = 160 000 (Acc dep) 650 000 - 160 000 = 490 000 (Book value in 2016) (490 000 - 0 (no residiual value)) / 4 ( Total was reduced from 8 to 6 years - 2 years which we already depreciated) = 122 500 We hope we could help you :) Your Success Formula Team - Florian
Can someone explain why a call on non dividend paying stocks can never be optimal whereas other cases can be optimal ?
Because you always have a time value of time. Instead of calling it, you can sell it on the market. If you want to buy a call option for a stock you will not get it for free or? even through the strike price would have the same value as the stock (Or even if the strike price is below the share price). However, there is the scenario of a dividend paying stock. Let's say the stock is worth 100$ and will pay 99$ as a one time special dividend. You have a call option with a strike price of 100$ which is worth 10$. After the stock dividend your call is basically worth nothing (It is very unlikely that the stock is going back to its 100$ value in a short time). In that case it would make sense to exersice the call option before the dividend payment, receive the dividend and walk away. However, there is a limitation! Only American call option can exersice the call option before their expire date. European options have a fixed expire date. (The term European or American has nothing to do with its origin, there are american and european options exersiced in the US, as well as in Europe)
Thank you!
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thanks bro you saved my ass, now i think i can pass tmrw
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these questions will be in the exam? or are they just a sort of guideline?
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No they don't?
beide bitte maul halten.
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Could someone explain how to get to the correct answer (B) for Q-7? I thought you just had to calculate the taxed r-wacc and then discount the FCF with the r-wacc minus the growth rate, but that ends up at 101.
Someone help please :) answer is C