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What did you guys write for the reasons to change from conglomerate to new portfolio structure?
@vatalya said:
How did you guys get 157m for apv I had single digits sigh… I thought I did well in this paper but now I don’t think so.. I know where I fell down was calculating the growth on the fcf for Tai as a perpetuity. I didn’t remember that foreseeable future was perpetuity.. I was thinking one year growth… I wonder how many marks were at risk for that growth calculation. What did you guys say Tai would prefer as an acquisition offer?Chill bro, as long as you carried out the basic calculations alright and took your own figures to conclude at the end you will pass the question.
No brother, you are wrong here.
1.034 USD = 1 CHF then,
X = 12.3m CHFJust do a simple cross multiplication. You will get a higher dollar amount. The google will also tell you that CHF is stronger to USD and for every 1 CHF you will get a bit more higher US dollar.
Guys, I think fretting over APV being positive or negative is futile. We can even assume the net cash flows and make APV positive or negative provided we do all other calculations correctly. Obviously we must write the decision whether to accept the project or reject accordingly. Own figure Run (OFM) applies in AFM as well. Chill 🙂
What you guys wrote for this one. 3 b) explain factors to discuss over them using longer term finance and factors that would make them change the policy down the line (10 marks)
Section A
1. Differentiate MBIs and MBOs? And why was MBI preferred by company? (4)
2. Discuss organizational and portfolio restructuring and why the company turned from conglomerate to current business structure. (5)
3. Report (4)
i) Value of predator and target before acquisition and value of combined company (10)
ii) percentage gain to predator and target under different proposals of acquisitions (12)
iii) reaction of predator and target company shareholders for different proposals (7)4. Differentiate reverse take over and IPO. Adavtanges and disadvantages.
Section B
2.
1. Hedge using futures and option for foreign currency receipt (12)
2. Why should a company choose exchange traded derivatives to market derivatives and why forwards are better than options? (7)
3. Explain mark to market in futures and some calculations (6)3.
1. APV calculation (15)
2. Why should a company for long term finance and why they should be flexible. (10)I don’t want to repeat the cliches like question practice, time management in exam etc. to pass this exam. They are important. Period! I want to speak about little details that most people tend to ignore but is very important in passing this exam. P5 compared to other papers is a light subject with less content to study. The main challenge in passing this exam is not the lack of knowledge but the lack of good exam writing techniques. So this focuses only on exam writing.
1. You should break up the requirements in a single question and thats the way Alex writes. “Explain and analyze the problems of………” (10 mks). You should explain the problems and analyze the problems as well. Too much of either explanation or analyzation will not fetch you more marks. Get a balance.
2. Alex writes question in such a way that the requirement part seems generic or straight forward but the actual question lies in the scenario.
For example: The requirement is “ Explain the drawbacks of using incremental budgeting in XYZ Co.” But in the scenario you will see a line like this “As a performance mgt. accountant, your CEO has asked you to prepare a report highlighting the benefits and drawbacks of using incremental budgeting”.
Even though the requirement asks us to explain the drawbacks, the scenario asked us to explain the benefits as well and you must write down the benefits to fetch more marks.3. A very simple and mostly ignored tip. Leaving a blank line space between each point you make. Trust me guys, it’s very simple and mighty effective to get the full reward for our points. As dumbing our knowledge is of no use in this paper and points related to scenario is of utmost important, it’s key to separate out each points. Don’t use highlighter or bullet points but leave a blank line space between each points you make rather than cramming in 3-4 points in big big paragraphs. It’s proven that people who leave space between each valid points score more than the people cramming everything in big paragraphs.
Best of luck.
Thanks to Almighty that I passed both P2 and P5 this sitting with 50 marks each. I was really unsure of P5 pass as I had no clue over that 12 marker variance question (4th Q-Part B) and left it completely. Q1 was also bit ambiguous with questions ranging from different topics from a relatively small scenerio. The only question that I attempted with full confidence was Q3 Corporate failure and I think that saved me big time to get that magical figure of 50. Should have scored something in the range of 18-20s in that Q I believe. Thank God.
Coming to the point, I don’t want to emphasize the cliches like time management for each part of the questions, answer planning and practicing exam style questions before exams. They are very important. Period. I had slacked in a few and that burned me right from the exam hall to the result declaration. You can imagine how a 50 scorer will feel.
What I believe most people ignore but is very important to P5’s success is writing style. Though bullet points are not preferred, it’s important that you MUST leave a line space for each relevant point you make. This surely enhance your chances of getting reward for each of your relevant points. The answer script will look legible, the marker can spot your point easily and you get a tick and a mark for each points. Don’t cram in more than 5 sentences in a para. If you believe that you got different points to make and are sure that you will get a mark for each of them, you MUST separate those points with a blank line. Trust me guys, it’s very important.
Next important stuff that’s very relevant to P5 is not to question spot. Alex has openly challenged that he will catch those people out. For example, as corporate failure has already come this sitting, don’t assume that it’s not going to come in next sitting and ignore that topic altogether. I know my friends who did that and left dejected.
The best approach is to cover up the whole portion and attempt few questions from the exam kit. The next approach which is not recommended is that, If you don’t have time to attempt those questions, understand the questions from each topic and read through the answers at the back and memorize some basic stuffs like I did.
The last but not the least is Love the P5 topics. Though I was not a good learner which is evident with my 50 marks, I loved P5 topics as it’s closely linked to real professional/business life. My tutor always said most of the times there are no right or wrong answer in P5 unless you justify your answer sensibly.
I think I have gone overboard being a 50 marker. Just shared my experience of how did I get that magic figure without being too nerdy. Exam writing technique is vital. Thanks to my tutor for all such tips and always thank to Almighty.
Congrats to all the achievers. To the repeaters, Chill! Almighty will surely give you the best result. Work ‘Smarter’ ?
Hi Kelkar,
Straight to the point, F5, F9 and P3 knowledges are supplementary to P5’s success even though it’s not a necessity. Few of the variances from F5, NPV, IRR calculations from F9 and few models from P3 are present in P5 and it’s quite easy. You will be better placed and will grasp the contents quickly if you have knowledge from those papers.
Being wordy doesn’t mean that P5 is really suitable to wordy people. P5 is a small subject compared to other P level papers. If you have interest in it’s contents (which you can understand by referring its syllabus), you will start loving it. Unlike P1 and P3, words doesn’t matter here. Points related to “scenario” matter. If you can write a scenario related sensible point, you will score a mark and will not score any even if you dumb all the GK. My friend who doesn’t like P3 but passed it was advised not to go for P5 by our tutor.
P4 obviously is very technical which is closely related to F9 in particular. Check out the syllabus of both these papers and try to score your likes and dislikes in each papers. Best of luck.
Thanks to Almighty that I passed both P2 and P5 this sitting with 50 marks each. I was really unsure of P5 pass as I had no clue over that 12 marker variance question (4th Q-Part B) and left it completely. Q1 was also bit ambiguous with questions ranging from different topics from a relatively small scenerio. The only question that I attempted with full confidence was Q3 Corporate failure and I think that saved me big time to get that magical figure of 50. Should have scored something in the range of 18-20s in that Q I believe. Thank God.
Coming to the point, I don’t want to emphasize the cliches like time management for each part of the questions, answer planning and practicing exam style questions before exams. They are very important. Period. I had slacked in a few and that burned me right from the exam hall to the result declaration. You can imagine how a 50 scorer will feel.
What I believe most people ignore but is very important to P5’s success is writing style. Though bullet points are not preferred, it’s important that you MUST leave a line space for each relevant point you make. This surely enhance your chances of getting reward for each of your relevant points. The answer script will look legible, the marker can spot your point easily and you get a tick and a mark for each points. Don’t cram in more than 5 sentences in a para. If you believe that you got different points to make and are sure that you will get a mark for each of them, you MUST separate those points with a blank line. Trust me guys, it’s very important.
Next important stuff that’s very relevant to P5 is not to question spot. Alex has openly challenged that he will catch those people out. For example, as corporate failure has already come this sitting, don’t assume that it’s not going to come in next sitting and ignore that topic altogether. I know my friends who did that and left dejected.
The best approach is to cover up the whole portion and attempt few questions from the exam kit. The next approach which is not recommended is that, If you don’t have time to attempt those questions, understand the questions from each topic and read through the answers at the back and memorize some basic stuffs like I did.
The last but not the least is Love the P5 topics. Though I was not a good learner which is evident with my 50 marks, I loved P5 topics as it’s closely linked to real professional/business life. My tutor always said most of the times there are no right or wrong answer in P5 unless you justify your answer sensibly.
I think I have gone overboard
Passed with 64 and I never expected this much. Thanks to Almighty. I was not sure if I will pass or if i will fail. I expected that if I pass, I will be scoring something less than 55 and if I fail it will be something between 45-49 which is even more worser. I could not attempt risks question and substantive procedures were learnt ( did not practice ) at the last moment. That was the same thing for F6. This was one of the most anticipated yet tensed results ever. I was even tensed to open the SMS. Finally opened..Bingo.. Thank God, I passed with 60 in F6 and 64 in F8.. More than I expected. I guess the theory bits in both F8 and F6 helped me to pass. Congrats to those who passed. T
Those who could not make it, I know its really depressing and heart breaking to fail by scoring 46 and so.. I have experienced it myself. I think you guys do not lack knowledge, its just that you need to practise revision kits. If you dont have enough time to do that, at least read through the questions and answers, the way they are written and the knacks of picking up easy marks. Obviously you need not by heart all those answers, but you will certainly get to know how to score easy marks just by a number, word or sentence. I went through Kaplan text books and revision kits and self studied. My morale was too low when I failed few papers in 40s thrice. My affliate friend advised me to practice revision kits. I put bit more effort in that area and I saw wonders in my results. I am moving into professional levels now and I have realized that learning, practicing and praying are the ways to pass. If I can do that, you guys too can. Dont lose hope. Just re attempt soon and best of luck guys. I hope that next time, you too will be sharing your success stories and how sweet you feel that time after being gutted now.