*** P4 December 2012 Exam *** Instant Poll and comments***

Home Forums ACCA Forum P4 Advanced Financial Management Forums *** P4 December 2012 Exam *** Instant Poll and comments***

This topic contains 93 replies, has 39 voices, and was last updated by avatar jwarrick6 1 year, 4 months ago. This post has been viewed 304 times

Viewing 20 posts - 1 through 20 (of 94 total)
  • Author
    Posts

  • Avatar of admin
    admin
    Participant
    • Topics: 246
    • Replies: 758

    Post your comments about December 2012 P4 exam.

    Please vote in our Instant Poll

    Please note: The ACCA has requested that no postings must be made in this forum before 15:00 GMT on the day of the exam – any postings before this time will be deleted.
    Remember that you are studying for a professional qualification – do not make postings that are abusive or threatening. Anyone breaking this rule may be reported to the ACCA disciplinary committee.


    avatar
    keyboard
    Participant
    • Topics: 8
    • Replies: 210

    paper was easy but i could not manage it… my time schedule does not allow 2 qualifications hand in hand , need to look into few matters… but paper wasnt that difficult


    avatar
    Anonymous
    • Topics: 2
    • Replies: 6

    Q1. Financial Reconstruction
    Firm demerges and pays of 70% Debt and balance reinvests in company with funds recd.
    a) Find Ke,Kd & WACC B4 and after payoff
    b) Does mrkt capital (Equity) reduce or increase with the payoff
    c) Demerger Vs sell off

    Q2. Risk Mangement
    Gave three cases: transaction, Economic & Translation risk
    a) Explain the 3 cases
    b) Hedging case 1 (Forward & options)
    c) Hedging case 2 (Can we hedge against economic risk, if yes which hedge)
    d) Hedging case 3 (what hedge to choose)
    e) Professional marks (4)

    Q4. NPV
    a) Simple Npv with Sensitivity analysis (6)
    b) & c) Multi period capital rationing (5+3 marks)
    d) Capital Investment monitoring – why & benefits (6)

    Q5 International Monetary fund & European Debt Crisis (Discursive)
    A middle priced clothes and clothes accessories retailer in Europe. Facts: Low & high priced better fared crisis than middle priced sectors.
    a) What is IMF, its aims? Austerity measures: how and why did it affect middle priced sectors? (10)
    b) Why in your opinion low priced and high priced clothes and clothing sector fared better than middle priced clothes and clothing sector? (4)
    c) How can middle price sectors cut cost and boost profit. (6)
    Q1
    a) 20 marks
    b) 5 marks
    C) 8 marks
    Q2
    No idea about marking scheme (Sorry!!!!!)


    avatar
    Anonymous
    • Topics: 2
    • Replies: 6

    Q1 I Got the following:
    Kd: 3.9 and 3.7 (After tax)
    Ke: 10.7 (stays same)
    Wacc: Initially low (around 7%) after pay off around 9%

    And Market value of equity increase after payoff (as less Interest paid) Also the 30% reinvestment into capital

    Can any1 confirm……….PLEASE


    avatar
    ashenpeiris
    Participant
    • Topics: 0
    • Replies: 14

    @lastpaper
    question was asked to calculate the cost of equity before and after the implementation of the proposal. before implementation cost of equity is around 10.26 but after implementation beta factor will be changed and this will result in change in cost of equity to 13%

    irrespective of the cost of equity change questioned assumed to consider that the VALUE OF EQUITY remains unchanged. Is not it?


    avatar
    lala169
    Participant
    • Topics: 1
    • Replies: 2

    re Q1: I thought Ke changes – as after the proposal company is engaged only in hospitality business – I adjusted assets beta following the proposal (minus assets beta of property companies) – after proposal ke increased to 12% – I can not remember the scenario well enough now – stressed out :(


    avatar
    piranha18
    Participant
    • Topics: 2
    • Replies: 13

    Please some one tell me it was a really bad one..in my country the exam got cancelled!!! So that I can comfort myself saying that I could not have even passed with the question… :(


    Avatar of zohaibahm3d
    zohaibahm3d
    Participant
    • Topics: 0
    • Replies: 6

    any 1 attemptep question3 ? ? what was the pe ratio of dentro co ? was it 9 ?
    and it share price was 450cents?


    avatar
    kronbvit
    Participant
    • Topics: 2
    • Replies: 2

    Yes, I did Q3 and got PE for Dentro 9 and share price 4,50$. I got that the highest value increase arose in Model 3 with bond issue.


    avatar
    fongky2
    Participant
    • Topics: 0
    • Replies: 15

    oh dear, why cancel? which country? will acca refund the exam fee?


    avatar
    darthvader001
    Participant
    • Topics: 0
    • Replies: 50

    q1 was dreadful. did not make too much out of it..


    avatar
    fitzeoin
    Member
    • Topics: 1
    • Replies: 1

    Ya I got the same Dentro 9 share price €4.5,
    For option two did You.
    - Revalue combined by Adding PAT and x by PE
    - Add 30% of equity of Doric for Synergy
    -Calculate new Shares in issue
    - Dorics share number * 3/2
    - Add number of existing share
    = Total Number of shares
    New Cobined vale/New share amount
    Then compare 2old vs 3 new share amounts
    I got a reduction in Value for the Dorics share holders


    avatar
    darthvader001
    Participant
    • Topics: 0
    • Replies: 50

    did anyone find q1 easy and answered in full?


    avatar
    mingzai89
    Participant
    • Topics: 0
    • Replies: 3

    not easy at all… T.T


    avatar
    evalstngj
    Participant
    • Topics: 13
    • Replies: 41

    Exam looked easy but i was busy computing and looking for figures that were already given. This is the effect of the technicality of the old examiner and past questions that one has had to deal with.


    Avatar of krishnamr007
    krishnamr007
    Participant
    • Topics: 2
    • Replies: 3

    i found only that question very tough.


    avatar
    darthvader001
    Participant
    • Topics: 0
    • Replies: 50

    I’m sure that there were some things that looked very easy but we will have a surprise when we see the answers


    avatar
    thieuson
    Participant
    • Topics: 0
    • Replies: 13

    I have a mistake that did not take distributed cashflow of of FCF to compute firm value ;)


    avatar
    danavsy
    Participant
    • Topics: 0
    • Replies: 2

    omg…u all can remember all the Qs and the marks allocated? with the probable answers? i just hope to pass…nothing more that…i didn’t finish all the Qs…i just hope im good enough to pass..i dont want to be perfect…


    avatar
    thieuson
    Participant
    • Topics: 0
    • Replies: 13

    Q1: both ke and wacc are changed because it’s gearing changed and kd changed due to rating of the firm changed

Viewing 20 posts - 1 through 20 (of 94 total)

The topic ‘*** P4 December 2012 Exam *** Instant Poll and comments***’ is closed to new replies.