*** F9 June 2012 Exam was … Comments and Instant Poll ***

Home Forums ACCA Forum F9 Financial Management Forums *** F9 June 2012 Exam was … Comments and Instant Poll ***

This topic contains 198 replies, has 84 voices, and was last updated by avatar jm84 2 years, 1 month ago. This post has been viewed 895 times

Viewing 20 posts - 1 through 20 (of 199 total)
  • Author
    Posts

  • Avatar of admin
    admin
    Participant
    • Topics: 246
    • Replies: 756

    Post your comments about June 2012 F9 exam.

    ?How did you do? What came up? How did this paper compare to previous exams?

    Vote in our Instant Poll


    avatar
    vishalacheeranjie
    Participant
    • Topics: 1
    • Replies: 1

    what topics came guys?


    avatar
    mother1
    Participant
    • Topics: 1
    • Replies: 9

    Exam is still in progress !!!


    Avatar of bennettdavey
    bennettdavey
    Participant
    • Topics: 0
    • Replies: 2

    ?


    avatar
    ashrin1091
    Participant
    • Topics: 0
    • Replies: 1

    well guys, let me just discuss some of the questions that came out

    investment appraisal
    equivalent annual cost
    miller orr
    capm gearing and ungearing
    overtradingbiz valuation
    islamic finance mudaraba
    forwardd exchange
    money market hedge

    that about all i can remember guys


    avatar
    jm84
    Participant
    • Topics: 5
    • Replies: 86

    A very fair exam

    Question 1
    Calculate NPV and Annual Equivalent cost, Discussions Sensitivity analysis and probability analysis

    Question 2
    Overtrading, difference and similarity between working capital financing and investment, Miller-orr model

    Question 3
    SME agency problems less than big company – reasons, mudaraba, purchasing power parity, forward hedge v money market hedge

    Question 4
    P/E valuation, Dividend valuation (tough – this year no dividend, how to use dividend valuation model), Calculate WACC, discussion on financial risk, business risk and systematic risk

    Overall, time is slightly pressurised, but I manage to finish. No tough topics. Should be able to pass based on the impression I finish the questions.


    avatar
    cls
    Participant
    • Topics: 1
    • Replies: 2

    for NPV, do we have to use the sales figures given in year 2 to 4? or just inflate according to the first year?


    avatar
    razraz
    Participant
    • Topics: 1
    • Replies: 17

    I just did Q1 n 2 well. 3 was ok but 4 was disaster. Due to time pressure I went blank and cudnt find the share capital for wacc. Theory part was crap as well. Don’t know if I can get 50. Probably 25 marks has been absolutely messed up. Plz guys tell me ur experience if I can pass. Otherwise my life will b hell


    avatar
    jm84
    Participant
    • Topics: 5
    • Replies: 86

    @telicia said:
    for NPV, do we have to use the sales figures given in year 2 to 4? or just inflate according to the first year?

    I thought all the sales and variable costs are given in year 0 term? So have to inflate ourselves?


    Avatar of kachaloo
    kachaloo
    Participant
    • Topics: 8
    • Replies: 26

    Question 1:
    Project 1 NPV 1614
    Project 2 : Machine 1 EAC 89 (I guess) machine 2 105 ( I guess) Machine 1 should be purchased
    Then Sensitivity/Probabality Analysis duscussion
    Question2:
    find if over trading with ratios to compare
    Had to skip working capital financing/investment due to time pressure.
    Miller orr model: Upper limit 275000 and return point 225000 what it good for that overtrader above.

    Question 3: SME conflict with shareholder comparing with large one.
    Mudaraba if it is OK for forward contract?
    PPP calculate spot rate : 1.963 I guess. Discuss theory.
    Forward vs money. which one to choose in question. (left it No time)

    Question 4: PE valuation- I think I messed up- $3000/1.03*15=436893 (don’t if thats how it was supposed to be.)
    Dividend valuation: Ke= 12% g=3%? and no dividend? just left it ;)
    Calculate WACC: current 19% and after debt 14% (hope its OK did’t degear if needed Just could not see anymore :) panicking )

    Hope I pass will be glad with 50


    avatar
    nenor
    Participant
    • Topics: 0
    • Replies: 11

    Wasn’t return point 1/3 spread+lower limit, i.e. 225?


    avatar
    bathape_r
    Participant
    • Topics: 0
    • Replies: 1

    anybody know how to do Q4?
    Part (a) was asking for valuation using dividend growth model, the only thing i could think of was Share price valuation using Dividend growth model. The question did not indicate the number of shares and i made the assumption of 10 Million shares, in order for me to divide Dividends to fit in the Equation of P0=Do(1+g)/ke-g. Hope to get some feedbacks thanks!


    Avatar of kachaloo
    kachaloo
    Participant
    • Topics: 8
    • Replies: 26

    @telicia said:
    for NPV, do we have to use the sales figures given in year 2 to 4? or just inflate according to the first year?

    I have inflated sell price with 4% and 2.15 for variable cost. also included fixed cost already inflated. used 7% after tax cost of capital. resulting is 1614 NPV I guess.


    avatar
    jny1788
    Participant
    • Topics: 1
    • Replies: 13

    que 1 and 2 gud que 3 was avg n que 4 was disaster.. didn ustnd wat to do due to time limit……….and dnt no……….pass or nt? :(


    avatar
    jm84
    Participant
    • Topics: 5
    • Replies: 86

    Question 4 need degear? I thought question has already given a new equity beta?


    avatar
    cls
    Participant
    • Topics: 1
    • Replies: 2

    degeared may not be necessary since the business risk is still the same even if there’s an increase in debt. isn’t it?


    Avatar of kachaloo
    kachaloo
    Participant
    • Topics: 8
    • Replies: 26

    nenor said 3 minutes ago:

    Wasn’t return point 1/3 spread+lower limit, i.e. 225?

    you are right It was typo on my part. I did get 225.


    avatar
    jm84
    Participant
    • Topics: 5
    • Replies: 86

    ya, I just use the new equity beta to recalculate the cost of equity using CAPM. Hope this is correct. I am running out of time for question 4. Left 30 minutes for that question and somehow get stucked with the dividend valuation model.


    Avatar of kachaloo
    kachaloo
    Participant
    • Topics: 8
    • Replies: 26

    @jm84 said:
    Question 4 need degear? I thought question has already given a new equity beta?

    I thougtht so aswell but a poster above saying that degaering was needed. I just used the new Beta of 2 which gave me 14%.


    avatar
    miniclaire
    Participant
    • Topics: 8
    • Replies: 30

    the EAC QUESTION wat discount rate did u use? i took the 7% rate not sure if thats right anyone ????

Viewing 20 posts - 1 through 20 (of 199 total)

The topic ‘*** F9 June 2012 Exam was … Comments and Instant Poll ***’ is closed to new replies.