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Congrats, Guys! I got a cool marginal pass and now done with exams. I would be practising with past exam questions until you feel you could design the question like that yourself. And obviously exam technique is critical. For example , i was careful with investment appraisal/discounted cash flow questions. They are straightforward but can take a long time to write down. I’d practise that and whatever else you’ve got issues with.
Waiting for P4 2nd attempt being the last exam. No more theories for me this time. Only got involved into it last time as was desperate to get a pass and finish it all. I felt i’ve had very good December exam and to make things worse i ,then ,followed some dude’s advice on Dec 17 countdown thread that one can ” thank God and start celebrating if this opens there and that box can be ticked there ,et cetera.I’ve had no issues and no e-mails. So i crack opened a beer bottle shortly before midnight on Sunday but it all ended quickly when i got that text with the fail of 47 marks. I wouldn’t blame people for getting involved into these theories but the only theory i believe in this time is that i’m going to chill until Monday morning and then whatever happens, happens. Good luck to everyone!
Completely forgot values for both betas , cost of equity and Wacc for combined . Just cost of equity of 9% for APV question.
Similar situation here – P4 being last exam . Also ended up with 8 mark part of APV question unfinished as run out of time.
What i did was that i calculated combined asset beta by using individual asset betas ( provided), 12600 equity value of the acquirer ( has been provided either ) and equity of the target ( calculated at the 6 mark part ). ( by sticking all that into that formula similar to wacc) . Then , proceeded by calculating combined equity beta by using combined asset beta and 70:30 debt to equity ratio ( or the other way round) as it’s been mentioned as applicable for the combined company . And finally calculated cost of equity and Wacc in a usual may. Not sure. That looked like the only way to me.Just calculated ungeared cost of equity from MM formula . For that calculated values for equity and debt first. And then used that to discount cash flows.
I got equity value of the target company something between 1500 and 1600. Combined equity was greater than the one of the acquirer.
APV was positive and it was some substantial value . I think i had taxes in year 3 and 4.Well, i failed first time with 47 Marks ! ( If this is of interest to anyone , i could open every link without errors and enter e business/ tick the little box)
Going to enter March exam in the morning and start preparations shortly.We must have been discussing weekend premier league football instead of that blinking link/e-business theories . Helps to beat the results day anxiety so much better.
60 marks, 5th attempt! Someone earlier mentioned regarding ” god having his way of doing things”. That’s exactly what i was about to say. I mean i managed to assemble a fair response but judging from my previous attempts( 39%, 40, 38, 35) , the most i hoped i could get would have been the marginal pass. This time i was very cautious with time management so covered about 95% despite option questions being very tricky.
After the 3d fail i got very negative about the whole thing but managed to crack on. There is a sweet feeling of liberation. Going to have loads of liquor over the week end.
Tons of luck for those resitting in September!