[Alex]

I believe the exam was really hard

Question number one was an APV calculation for 21 points with a possible interest SWAP and comments on managers view. I got a 12% cost of equity, negative NPV and positive APV after incorporation of subsidised loan finance and tax saving on normal loan interest. At the same time I feel i was not consistent enough – i calculated saving on subs loan versus rate on notmal loan, which was given as 6%, but at the same time SWAP resulted in a decrease of rate to 5.7% and I have caluclated tax saving on interest 5.7%, not 6%.. pehaps subs loan saving should have been calculated as well versus the updated rate (but in this case it would make no sense to discount it at 6%). At the same tine in requirement there was not separate question regarding the rates SWAP which is strange.

Question 2 appeared to be very easy if you knew the Gordons growth model. I have totally forgotten about it and calculated the growth rate based on the given share price and given required investor return (which is not correct I believe). At the same time I dont understand how the marking scheme is working – If i Have failed to calculate correctly the market value of acquired company – all other calculations were based on an incorrect synergy effect of two companies, thus also incorrect. Is it still possible to get there some marks? I hope.

When I arrived to the last question which was the ration question – I have only 25 minutes left which was not enough at all.. I tried to write some of comments on performance, gearing and liquidity and ran out of time. However looks like it was a question with easy marks.

Hope for 50% at least, but at the same time not sure I will get those

I also want to leave a feedback regarding the technical side of the exam. I am sorry, but CBE are awful. Excel in the exam is a total disaster. It is written somewhere that you can’t add rows and columns, thus use Ctrl+x ctrl V to manage the composition of the sheet – but when you do it – all formulas are breaking. You can not freeze cells (F4), you can not review your formulas (F2), you can not select a range of cells and copy the formula inside. I feel like I have lost plenty of time on such not exam related activities, eventhough I have practised such sitting before.

Wish everyone luck!

[Alex]

Hi, All,

I am quite new – but were there different variants of SBR INT exam? I hardly recognize tasks you discuss here.

In my SRB INT:

1) Task 1 a long question with how to recognize facilities, division of sales and IA on consolidation with a goodwill calc wich was rated only for 4 points
2) Ethical task with role of Finance Director in a data breach episode
3) Task with share options for employees and loans to employees with a loss allowance calcualtion
4) Sustainability report and DEvelopment costs on a film production + impairment of goodwill on a game

I dont think tasks were too difficult but there is not enough time to answer all definetely. There were strange question on FV of contract assets with customers which were somehow calculated however those contracts need to be completed for further 11 month – how does this comprise in individual and consolidated FS? No clue.

[Alex]

What about tests?

[Author]

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