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I have to politely disagree with bilalahmad99 here, Its quite possible to pass comfortably with the revision kit alone. Studying textbook may not be practical to a lot of students in terms of time available for preparation as well as the amount of material to cover. I personally got discouraged in my approach of being thorough with the revision kit like I have done for all other papers after reading this post, thankfully I stuck by my approach largely due to time constraints and was able to secure 72 marks in the first attempt.The key to a pass I believe is to make sure you are well versed with an updated platinum revision kit such as bpp or kaplan after going through sir John Moffat excellent lectures and the study notes to get your core understanding of the syllabus strong.You may find the rev kit questions quite challenging at first as there are no similar or identical pattern of questions, every question is unique on its own but as you practice regularly you will get the hang of it and find it easier to answer the questions ie you will get used to the style of writing and the way afm questions should be answered. With regards to the pattern of the questions in the exam, there will be a sure risk managment question and an appraisal question.NOTE: the most important suggestion is practise the questions in the acca platform to get used to the spreadsheet,word and the bsop calculater, I cannot stress more how important this is ,there is a huge difference between doing a question on a paper compared to doing it on a computer,spreadsheet is a quite powerful tool to take advantage of, and its not the full excel software like most of us are used to at work or elsewhere , hence the importance of practising in the free acca platform.Practise using functions such as Npv,irr etc,they are valuable tools to lessen your chance of making errors and also saves valuable time. DONT bother doing the older step by step method calculating values of options manually, you are wasting precious time and also have higher chance of making a mistake,with the bsop calculater its as easy as plotting in the input values and the calculator does the work for you. Time your answers, initially you might take more time but as you practise more, you will be able to answer the questions within the alloted time for a particular question, a lot of people fail in this paper especially due to poor time management. Although I could not study the technical articles in the acca website due to time constraints,its quite important and so I would suggest to go through all the articles . Finally it really is not a hard paper once you get into it,the pass rates clearly indicates it. Prepare well folks. Best of luck!
Yes i did ,including the discounted cashflow given in 5 years time which i discounted back to present value.Even investment B gives a small Npv without the real option.Anyways rest assured whatever i did is most probably not right.I hope all u guys ace it 🙂
I did as they said discounted cashflow in 5 years time (given) so we need its present value to calculate the Npv (pv discounted at year 5), I am sure I am most definitely wrong… also we need to factor in the Wc investment a year prior.My question is how u guys did the adjustments and the resultant Npv.
Can anyone tell what they got in their result in the 50 marker…for me it was some 3 million for investment A and 5 million something for investment b with the real option incorporated.less than a million for investment b without real option.
Sir,if base rate rises by .4% to 4.1%, i calculated borrowing cost 2.208 million (48 million *4.6%) + premium (576 contracts * 1 million*.013 premiun)/400=2.2267 million
Effective annual interest rate=2.2267/48*100=4.64%
Bpp answer 4.61%
Bpp takes interest rates directly for this collar question, how to know which method to use?should all collar question be done with directly taking the interest rate?
Yes sir,I have went thru cbe practice platform for example,the specimen paper, response option of both spreadsheet and word processor is given for every question, system does not appear to segregate based on sections of question like u suggested , its basically a question and exhibits given along with response options of both word processor or spreadsheet or even sometimes the bsop calculator given (in the case of blank practice).My question is would it matter if u do not utilize excel for section b questions,mainly hedging or/and business valuation comes?
Sir my question is, calculating figures for example sales revenue inflated using a physical calculator and plotting them on the excel instead of using functions would gain full marks? And also sir could you clarify on your second point please?in the cbe platform for example for a hedging question or valuation qs both response options are given, just using the word process would gain full marks?since the workings does not require tabular calculations.
So the combined company value -cash premium paid divided by 310 shares and so on……but would we deduct the cash premium after arriving at the new value like the earlier comment?
Dear Mr Moffat,
I appreciate the replies once again,I just want to know if skipping the technical article to be more thorough with bpp rev kit would be advisable, as I am going through the bpp kit (new edition) it appears to take more time than initially expected and would require further revision.Due to the time constraints i have ,makes it very difficult to be thorough with both.What would be your take on this?
Thank you Sir, for your prompt reply.I just wanted to know if getting thorough with the theory in the BPP rev kit would be enough to scrap a pass mark along with the technical articles? Also do you think 8 hours a day on the rev kit and articles for the next 29 days would be sufficient to tackle the syllabus? Bit anxious, your advice will be much valued.
