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Hi,
First good luck to everyone , My 3rd attempt , Quite easy then before or may be i had prepared a bit more. Hope to pass.
Q1 a) NPV around +273, FC included , nominal rate.
b) ROCE was before tax, so i used PBIT amount, added all /4 and investment/2 then *100, but got 80% which i know was wrong but dont know why
c) Interest rate, cost increases for both because variable rate, solution fixed rate or hedging methods
d) Receivable factors, Initial policy, management, collection policies, discount, factoring etc
Q2,a) AR discount was + benefit
b) discount on bulk, dont remember but i think was + benefit
c) miller orr I think was easy.don’t remember the figures.
Q3 a) WACC 9.3%, equity + Debt +preference
b) Wacc MV, just write 3 lines that it gives the current cost depending on MV, thought will write in the end but was no time.
c) convertible vs loan, less interest, delayed equity, convertible if MV of company will be up etc
d) Interest rate hedging, futures, FRAs, options, swaps
Q4 didnt write much just did calcualtions in last 30 min.
a) valuation, NAV = total asset- total liabilities
P/E = avg industry,Eps = profit/ shares
div historic ithink 6%
g=br b= 100-div % I think 7%
b) relative merits didnt write muct just use and benefits
c) cost of debt dont remember
d) D/E, just calculated didnt write any thing because time ran out.ANY SUGGESSIONS?
can any one tell me about IRR calculations?well than congratulations Saba, still don’t know how you did it. Are you a full time student or working or do you have some other responsibilities as well?
2nd attempt
F9=46
did’nt expect that was sure to pass. Just applied for an administrative review.
Have any one else applied for the review before? what was the result after review?
saba007 is it true ?hello again,
i do understand the the rest, but to calculate the spread u need variance of cash flow, transaction costs and interest rate . And either i was stupid or i was confused but i didnt saw these figures any where in the question.
And i am more confused because it was an easy Q (if i had the figures).Hello everyone,
Too much to write in a short time.20 min left for Q4 and it was a mess in a hurry.
1)which formula of dividend used,what growth rate used.one thing i used was a total dividends in year 2.
2)and one thing i didnt understood was how to find out variance and transaction costs for miller Or model i left this Q.
3)both wacc with the values given no ungearing.used capm for ke value.