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Passed 2nd attempt (52)

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Failed 4th attempt (44)

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Futures price: 94.78

Exercise prices: 94.25 and 95.25

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@eagledave said:
Well, I did put her as high interest and high power and therefore, a key player considering she has an overall responsibility in the project’s success, being a project sponsor, and this is crucial for the company she leads as a CEO. The implication on the project manager is that regular update on the status and progress of the project would be required in order to ensure a quick resolution of any issues i.e. budget constraints.

This was also my line of thought too…hope it deserves some marks!!!

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Many thanks John for the explanation. Also well noted the need of using ask tutor forum to ask you questions.

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Many thanks for your well detailed explanation. I’m very clear now.

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@baverlym said:
Guys seriously, did you see the March/June 2017 Hybrid paper on the acca website? Number 1- 3 questions are from the March sitting, and only number 4 is from the June siting. This is not fair, they should have at least put 2 questions from each sitting..How then do we revise

I agree with you…for those ones like me who didn’t choose Q2-Bonds question, will never see answer for even a single part attempted in June 2017.

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@hoangduchung1903 said:
I do not understand your comment. March/June 2017 sample question has just been published. Please check the link I posted.

I only sat for June 2017 exam and I noticed that only one question from June 2017 paper was featured in the sample March/June 2017 so the other three must be from March 2017 paper.

No way they would take questions somewhere else and put them online as sample March/June 2017.

I’m very sorry Duc…Thanks for the information…I didn’t understand this was already published…and actually I agree with everyone saying that is not fair to just have one question from the most recent sitting.

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@hoangduchung1903 said:
Sample March/June 2017 questions have been posted on ACCA site: https://www.accaglobal.com/gb/en/student/exam-support-resources/professional-exams-study-resources/p4/past-exam-papers.html

Only the bond question of June 2017 appeared. The other three were all March 2017.

March 2017 questions are not published yet. So do not expect who sat in March 2017 to have memorized the questions there plus if you have failed in March 2017 where would you get the correct answers for March 2017. I’m pretty sure only the chapters covered were the same and this will be always like that but never the questions will be the same.

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@tancw95 said:
It’s okay, man. 😉

For the sales, what I remember is increase by 25% each years(y2-y4), but did not mention to be increase with inflation.

What I did is y2 x 1.25 y3 x1.25^2 …
Not sure I am right because it could be understand as x 1.25 every each with no square.

This make my npv higher (exactly 777).

y2 x 1.25 y3 x1.25^2 …This is the same approach I have folowed.

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@tancw95 said:
I thought the question only mentioned first year R 800 m and then increased R 90m each year.

Did the question mention the working capital is to increase according to sales?
Anyone can confirm it?

mentioned first year R 800 m and then increased by $90m for the next 3 years.

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@hoangduchung1903 said:
I think the main problem is time pressure, given excessive amount of information in the scenario.

We have to rush to finish on time and when we are in a rush, we tend to make mistakes or forget the details.

If we were to have 4 or 5 hours to finish 3 questions, it would be easy to get 70-80 marks

I agree with you Duc

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@jyacca said:
Q1
(A) why acquisition fail and how to ensure acquisition do not fail.
(B)(i) estimate Dharma co current value and estimate additional value created from the acquisition.
(Ii) estimate number of share exchange for the share exchange offer method.
(iii) calculate percentage gain for the cash and share exchange method
(iv) discuss the shareholders reaction and state assumption
(v) estimate cash available from operations to fund cash payment method
(vi) impact of reduction of dividend

Q2
(A) calculate the bond value when AA and when BBB
(B) Reasons credit rating was downgraded by credit agency
(C) impact of the downgrade in credit rating on the ability to raise finance

Q3
(A) investment appraisal and assumptions
(B) drawbacks of 2 transfer pricing method – 40% contribution and at cost

Q4
(A) 3 interest hedge method
(B)Advantages and disadvantages of traded option vs OTC options
(C) Explain delta hedge + demonstranting how to hedge using that +the impact of increase of 0.1% on the interest rates.

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Q4 b) Adavantages and disadvantages of traded option vs OTC options
Q4 c) Explain delta hedge + demonstranting how to hedge using that +the impact of increase of 0.1% on the interest rates.

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Hi Carol,

Did I get you well? Are you saying you failed with 49(!!!) marks three times???

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Hi John,

Back to option part on this Q1, why the question presents an adjusted figure for the initial investment ($2.500 vs $2.434-PV for 2 years) for the NPV purposes?. Shouldn’t be the PV of initial investment equal to $2.500??

Q4a) – Furlion Co: the figure for initial investment ($15m) for the expansion option was not adjusted to PV for 3 years!!!

I’m getting confused as I can’t see what is different in these two question papers for the same matter (option to expand). Please help me.

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Many thanks John!!!! Wonderful!!!

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Thanks so much John.

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Thanks John. I will also go through your free lectures on this matter.

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Unfortunately is one of those questions with no indication of the past exam to which it relates.

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Passed with 62% 5th attempt…happy like it was my last paper but it is not…still couple of P’s to write. Thanks god!!!

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