ACCA历年真题及答案P4-2012D.pdfVIP

Professional Level – Options Module 4 Advanced Financial P Management Tuesday 4 December 2012 r e p Time allowed Reading and planning: 15 minutes Writing: 3 hours a This paper is divided into two sections: Section A – BOTH questions are compulsory and MUST be attempted Section B – TWO questions ONLY to be attempted Formulae and tables are on pages 11–15. P Do NOT open this paper until instructed by the supervisor. During reading and planning time only the question paper may be annotated. You must NOT write in your answer booklet until instructed by the supervisor. This question paper must not be removed from the examination hall. The Association of Chartered Certified Accountants Section A – BOTH questions are compulsory and MUST be attempted 1 Coeden Co is a listed company operating in the hospitality and leisure industry. Coeden Co’s board of directors met recently to discuss a new strategy for the business. The proposal put forward was to sell all the hotel properties that Coeden Co owns and rent them back on a long-term rental agreement. Coeden Co would then focus solely on the provision of hotel services at these properties under its popular brand name. The proposal stated that the funds raised from the sale of the hotel properties would be used to pay off 70% of the outstanding non-current liabilities and the remaining funds would be retained for future investments. The board of directors are of the opinion that reducing the level of debt in Coeden Co will reduc