AB acquired 10% of the equity share capital of XY for $180 million in 20X4. On 1 January 20X8 AB acquired a further 45% of the equity share capital of XY for $900 million and at that date the original investment had a fair value of $200 million.

Place the correct values in the boxes below in order to complete the consideration transferred element of the goodwill calculation on the acquisition of XY.

Information from the financial statements of RST for the year ended 30 April 20X9 is as follows:

At 30 April 20X9 the ordinary shares are trading at $4.75.

What is the price earnings (P/E) ratio for RST at 30 April 20X9?

The financial statements of ST at 31 December 20X9 include the following balances in respect of shares classed as equity:

The profit after tax for the year ended 31 December 20X9 is $200,000.

What is ST ' s basic EPS for the year to 31 December 20X9?

Which of the following is NOT an example of an unconsolidated structured entity as defined in IFRS12 Disclosure of Interests in Other Entities?

The consolidated statement of profit or loss for VW for the year ended 30 September 20X7 includes the following:

What is VW ' s interest cover for the year ended 30 September 20X7?

An entity undertakes an issue of new debt which has the effect of reducing the entity ' s weighted average cost of capital (WACC).

Which of the following would best explain why the WACC will have fallen?

Entity A entered into a 3 year operating lease on 1 April 20X3.  The rentals are £5,000 a year payable in advance with an additional payment of $1,800 payable on 1 April 20X3. 

The rental expense to be included in the statement of profit or loss for the year ended 31 December 20X3 will be:

UV has raised $100,000 through the issue of two irredeemable financial instruments:

•  6% debentures with a current market value of $101.50 per $100 nominal value; and

•  8% preference shares with a current share price of $2.20 each.

The corporate income tax rate is 20% 

What is the post tax cost of debt for each of these instruments?

GG ' s gearing is currently 50% compared to the industry average of 40% (both measured as debt/equity). GG ' s debt is all in the form of a single bank loan that is repayable in five years ' time. The directors of GG are seeking to raise finance for a new project and they are considering an additional bank loan from the same bank.

Which of the following would prevent the bank from lending the finance for the project in the form of a new bank loan?

Which THREE of the following actions should improve the cash position of an entity?