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it was a weird exam… i wish i had APV…
i also prepared alot of stuff but didnt came up at all…
the exam was quite tough and very time pressuring and tough to go in the given time had a lot of calculations and theory wasn’t able to complete it fully.. there was a lot of theoretical discussions
Q1 3 NPV calculation, calculation in F Currency and then converting it n home currency and then calculating the total cashflows NPV in $ (Home currency)
Recommendation and justification of assumptions, Whether the project should be proceeded or not If proceeded with the project, the implication of relocation and redundancy
Advice on the statement about issuing a public report and about the things company is doing for the stakeholders, the topic was on CSR and how it could add shareholder value
River pollution due to a project in Germany and bad publicity about the company in the country and the advice on the what steps should be taken by the company regarding itQ2) the interest rate swaps and collar hedge (13 marks) with 3 year borrowing rate (something not seen before)
Benefits and drawbacks of interest rate swaps over the traded collars (8 marks)
Explain the impact of time on the expiry of real option (4 marks)Q3)
A company facing financial difficulties (foot ball company) had 2 proposals so
had to calculate the SOFP and SOP% Loss of the two proposals (10 marks)
evaluate the effectiveness of both proposals and the suitability of proposal in terms of stakeholders (15 marks).
