[auseklis]

Passed with 1st attempt – 56 points. Didn’t have textbook, used lectures and opentuition notes. Finally an affiliate.The road was long. Don’t give up!

[auseklis]

Passed with 62 points, very relieved to finally pass this hard exam. Congratulations to @ahmadraza2, @jcbacca and everyone who passed! To others, never give up. Study hard, use OT Notes, Video lectures and do a lot of previous year exams. It helped me.

[auseklis]

@jcbacca said:
Pretty sure you passed Ause, this your last exam? Found this interesting, i just sat ATX in Dec18. ATX is simple but the syllabus is a monster. Where as AFM had a small syllabus but there is just too many damn ways they can tweak the question.

As an english person they caught off guard. Im very impressed by people where there mother tongue is not enlgish sitting these.. good on you guys. I could do this in your languages.

Thanks, whishing for the best as I spent a lot of evenings studying and revising. I have one more exam to go. I think I will chose APM, as the syllabus is not so huge. I won’t choose ATX because it has quite large syllabus, pass rates are low, plus I didn’t like first Taxation exam and also I don’t want to study UK taxation as I don’t live in UK. How did it go with ATX for you? Why didn’t you choose APM? I completely agree with you about AFM syllabus. It’s not very large but exam can take many twists, and change in some details completely changes the question. Hope you will all do fine and never lose faith! It’s just matter of practice and not giving up.

[auseklis]

Q1.At first calculate asset beta at 80% from company’s beta. Then take 50% of each company’s asset beta, get asset beta 0.85. Calculate equity 1500m. MV of Debt 317M, taking 3 million 100$ bonds (6% coupon, 3% premium). I got re around 10%, rd around 5%, wacc don’t remember maybe around 9%. Risk free rate as 1 year govt bond yield which is 3%. Govt yields added with BBB rating, get bond price around 105$.
APV better due to change in capital structure (previous gearing 0, now around 17%).Wrote report to board of directors.
Q2 Forward rate FRA4-8 used, got 3.19 eff interest rate and $358 eur reciept or someting, Futures June, 48 contracts, don’t remember the receipt (maybe around $346) but it was worse than for FWD rates. Interest rate collars – sell call, buy put, premium has net from sell and buy. In interest rates rise, collar gave better result, but worse if interest rates declined.
Delta hedge – buy shares, sell call options on these shares to hedge against decrease of share price. can be calculated ar N=Nr of shares/N(d1). Gamma , rate at which value of option changes, as delta changes.
Q3 Describe what will determine success of acquisition of company. Wrote about synergies – financial, revenue and cost. Describe feasability of Pacman defense and White knight tactics against hostile takeover. Wrote that it would be challenging to find buyer for $580M company, and a lot of resources needed for taking over the bidder (need to raise debt or equity)
Didn’t have much time for Q3. Calculated the equity value before and after, using FCF of both companies + 7, then multiplying by FCF to equity multiple to get the equity value after the acquisition. Then calculated synergy benefit and split to each shareholder.

[auseklis]

1. Question
a) SWOT
i. Strengths – good reputation, good tutors, good location
ii. Weaknesses – high real estate tax, low energy efficiency
iii. Opportunities – legislation, that energy efficiency will be improved
iv. Threats – elearning platforms, competitors, key employees would leave company
b) Contextual features
. Time – not lot of time – competitors
i. Capability – management not capable due to no experience in private field
ii. Readiness – management & staff ready for changes
c). Nature and scope of change
. I worte scope – transformation as it transforms all layers of organisation
i. Nature – big bang – as change needs to happen fast
Altogether it is – Revolution
d). Strategic clock
i. Low price, low service – no because they have good reputation, tutors and location
ii. Low price, high service – right way, in order to maintain students and stay competitive, hard strategy to apply
iii. High price, high service, no because students not able to pay high fees

2. question. Not written

3. question. About DHS – social house provider for low income families
a). Harmons process strategy
i. Legal service – outsource as they are high complexity and low strategic importance
ii. Training- automate (videos), high strategic importance, not complicated
b). Software package
i) Commercial solution advantages
1. Update
2. Time
3. Bugs
4. Cost
ii). Commercial package risks
1. Scalability
2. Individualisation
3. Data security

4. question. About red neal
a) . Supply chain management
i). Incoming – Wrote about additional quality checks for manufacturing of watches (not sure)
ii) Outgoing – wrote that branded goods can go straight to customers from their own warehouses, not going through central warehouse
b). Boundary less organisations- didn’t know term, but written about independence of location

[auseklis]

@auseklis said:
From which I remember
1) A
2) A
3) A
4) C
5) C
6) B
7) B

.. can’t remember rest of them 🙁

sorry no, it was
1. C
2. C
3. C
4. A
5. A
6. B
7. B
🙂 there were quite many answer C, and one D I guess

[auseklis]

therefore you have 15 minutes reading time to check how points are allocated, mate. 🙂
I remember first 6 Multiple choice questions and they were
1. C
2. C
3. C
4. A
5. A
6. B
7. B
🙂
12. D

[auseklis]

From which I remember
1) A
2) A
3) A
4) C
5) C
6) B
7) B

.. can’t remember rest of them 🙁

[Author]

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