Funding a business expansion: Debt or Equity | ACCA FM | How to calculate TERP, EPS | Question Tin

Learn how to calculate Theoretical ex rights share price (TERP), EPS and the financial impact of funding with debt vs equity. You'll understand how to calculate and interpret gearing, interest cover and capital gains in the ACCA spreadsheet. We'll look at past ACCA exam Tin (March/June 2018) and all the spreadsheet exam technique to help you get a pass. Get tips, exam technique, and help to pass the ACCA FM exam.
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Contents
00:00 Introduction
02:03 Part i TERP
04:20 Parts ii and iii EPS:
10:16 Part iv: Share price
11:00 Part v: evaluation
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Steve Willis ACCA
How to Pass ACCA CBE Exams
for more help on TERP, EPS, Business finance, and Debt vs Equity, check out Open Tuition : • ACCA F9 Revision Sourc...
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[@SteveWillisACCA]

ERROR at 13:05 Guys, there is an error at 13:05 here I say "add the extra 500 shares, but it should have been "add the 500 extra shares * $4.00 per share (the TERP). Sorry for this. But, keep in mind, I wouldn't lose any other credit. Any interpretation of this figure, or using this figure anywhere else in my answer will be assumed correct. This is the "own figure rule." So I would lose 1/2 or maybe 1 mark for this error. Again, Sorry!

[@lynettekomugisha6215]

Thank you for the very understandable breakdown Steve, I love your approach to questions and I am lucky I got to have you as an FM tutor!

[@SteveWillisACCA]

Glad to help!

[@aayushlamsal7249]

Your presentation makes it easier to understand. I joined your revision class in PM back in March 21, I stood as national prizewinner, many thanks to you steve, you really are a great teacher. Fingers crossed for FM tomorrow

[@SteveWillisACCA]

Good luck! I'm sure you can do it, and get the next prize 🏆:)

[@mikeyy1916]

I have reviewed two other questions on BPP work book and it was difficult to follow. This lecture on excel made it 100 times easier to follow and understand. Thank you.

[@SteveWillisACCA]

Glad it was helpful!

[@jayshreekrishna8086]

Great help👍🏻thanks sir... really find your videos so helpful

[@NoName-dt5qv]

Great presentation sir... Keep going... Really helpful for us❤️❤

[@SteveWillisACCA]

Thank you, I will

[@user-tu2zh1fo9r]

Amazing presentation of the answers!

[@SteveWillisACCA]

Thanks!

[@owenniiadjeimasopeh5346]

Hello Steve Willis, great lecture. I have a question. In calculating the finance cost, wouldn't the compare enjoy any tax deductible interest?

[@SteveWillisACCA]

Good question! Yes, tax is net of interest.

[@jermainemills8582]

great teaching

[@SteveWillisACCA]

Thank you, and best of luck on your upcoming exams!

[@user-tu2zh1fo9r]

Thanks 🙏

[@SteveWillisACCA]

You're welcome :)

[@aaminaaman8831]

sir, can we put question 2& 3 and do both workings together in exam

[@SteveWillisACCA]

Be very clear to the marker what you are doing. Label everything, and show everything you do as a step-by-step approach. If you do this, you can link parts of the question together no problem.

[@gaganpreetkaur3358]

While calculating debt/ equity ratio, in the equity we should always add retained earnings ??

[@SteveWillisACCA]

When using book values, yes. When using market values, no.

[@sanaparkar1343]

Does the copy paste function work in exam? The one you did at 3:42 i think we can't copy stuff from the question side but unsure about this one

[@SteveWillisACCA]

Hi, copy paste works within the spreadsheet, but not from the 'question' the panel on the right. Control X, C, V all work fine inside the spreadsheet.