Forum Replies Created
- Posts
The Paper was Hard, time pressured as its nature. Q1 I did not recalculate the full EVA as they stated calculate if needed. I only made discussions as to where I thought the Junior Accountant did it wrongly, say WACC should have used post tax cost of debt of (1-30%) * 6.8% * cost of equity. Treatment of branding cost being capitalised should have added back the expenditure to Profit whilst recognising it as CAPEX. Such discussion and the story that other value based methods include NPV, Payback blah blah blah. Q2 Transfer Pricing appeared easy at first glance before I tackled. I regretted attempting it as I found it more difficult on 2b and 2c. Q3 was not answered completely living about 20marks unattempted for the whole paper. Hoping to get a 50%.
The exam was very much Time pressured, Q1 was too lengthy a case study. Would really be suitable for English Native people. Above Change Kaleidoscope which was given, I found the BCG Matrix coming in a bit as there was data given about the Revenue trends for the acquiring division, the acquired division as well as total market revenue trends. Such data would probe computation of Market share growth and relative division growth so according to how I interpreted it. I saw a Dog that was profit making and a Star. Comments based on what it means came up and so I discussed accordingly.
