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Everyone going nuts about Q1 on here , rightly so, but the Npv was only 9 marks of the 50 , the hedge was straight forward and then the little working for debt required for 11 marks was great , add in your 4 marks for professional marks and then hope you wrote something with a touch of sense in the theory bits , we have to stay positive! ! !
Q1
A) 5 marks investing in fx lands
B) 5 marks adv dis otc vs exchange options
C)
I) hedge & debt required 11 marks
II)NPV FX 9 marks
III) discuss above and something 9 marks
D)7Marks diff types of financeQ2
A)20 marks ratio and performance
B) 5 marks Behavioural financeQ3
A)6 MARKS fcfe of combined
B) share of benefit 6 marks
C) 7 marks synergies and issues
D) 6 marksI didn’t do the midpoint, instead I seen we had a payment in Year 0 so used the spot rate applicable to a payment, then when predicting Yr1 to 4 incomes I used the (spot applicable to Reciept x 1.Inflation/1.Inflation)
Ye that 10,051.36M sounds familiar.
the lost sales I netted of against the additional sales and then took tax off 30% the balance.
I got a perfect hedge on the option, which made me think I did something wrong?
Vaguely remember lecturer saying that you still get the marks for the basis even if its the wrong direction
Q1
I got Futures giving me the highest net Receipt.
NPV was such a head F**k, but I think I had logic to what I was doing, just don’t have that closure as we have never seen a question like it. had to translate the figures from ARD to € to then get them to YEN. took a few reads, serious head melter.Q2
Ratios & Trends for 20MARKS?? madness, straight out of P7 Q1 Analytical procedures type question, think I performed ok, the owner was window dressing as gearing was increasing along with Interest cover reducing , be difficult to continue Constant payout ratio DivQ3
FCFE for combined entity, one was FCFE with growth and the other was using a Multiple.
a bit of guess work, but couldn’t ram home the final part.all in all a very difficult unusual paper
Can remember other breakdowns (below)
Banking on a strong Q4 , a medium Q2 and weak Q1 pick up any theory where ever I could
Q4
A) future & option hedges 17 marks
B) Greeks Vega explanation 3 marks
C) swaption 5 marksQ2
A) fcf with growth 10 marks
B) adv & dis of acquisition 9 marks
C) problems with PE ratioYe sahill your wrong man , it was a standard future and option q , very doable , pity about q1 tho ?
Was the 3 marks in Q4 for one of the Greeks Vega?
Ok so Q1 breakdown was ;
A) how real options add value to NPV 5 marks
B) report to BOD (various calcs and discuss) 36 marks??
C) disadv of SC ration and if it were removed how finance might be gotten 9 marks
CANT BE RIGHT? , what am I missing out
What were the theory bits and Mark allocation in Q1
Something like
Soft capital rationing and finance avail if not used for 9 marks
And then something at the start before the report ??
There was definitely another part in the Q4 , advantages of a centralised treasury department for 5 marks or so ? But I can’t get it to fit into 25 marks
Anyone remember the points split of Q3 (b&s)
This is what I remember , please fill in the blanks
A i plot the variables given into model 3marks
ii blank 3marksB I put options for directors or call 3marks
ii cash bonus vs call option 3 marksC I Delta hedge 6 marks
Can’t be sure but still not all 25 marks accounted for here ,
Also I see lots of people chose the APV question is it better to do a question the majority did or not ?