ACCA历年真题及答案P4-2012J.pdfVIP

Professional Level – Options Module 4 Advanced Financial P Management Tuesday 12 June 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 8–12. 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 Nente Co, an unlisted company, designs and develops tools and parts for specialist machinery. The company was formed four years ago by three friends, who own 20% of the equity capital in total, and a consortium of five business angel organisations, who own the remaining 80%, in roughly equal proportions. Nente Co also has a large amount of debt finance in the form of variable rate loans. Initially the amount of annual interest payable on these loans was low and allowed Nente Co to invest internally generated funds to expand its business. Recently though, due to a rapid increase in interest rates, there has been limited scope for future expansion and no new product development. The Board of Directors, consisting of the three friend