[brucen]

I am confused by this. I thought Gross Profit was GP/revenue so 16.67% or 23.08%

[brucen]

@magradia said:
for paper base exam this is what i remember about section A. don’t remember order of questions though. not for profit, working capital cycle, how to reduce inflation, cost of discount accounts receivable, senstivity analysis, reverse yield gap, dividend growth model for supernormal profits, conversion value definition, market value loan note, perfect capital marets, SME financing, share price after rights issue with issue costs involved, strong form efficiency market, pecking order theory.

Section B and C money market hedge, forward rate. discounted payback period, how to hedge foreign currency risk, business valuation

My section A and B sound the same. Section C I had ENPV and WACC.

Do you remember seeing the exchange rate quoted
v2 – v3 1.18 – 1.21
v2 – v6 1.17 – 1.19
or something like that, numbers made up. I cannot find it anywhere in the study text.

Thnxs

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I got 2.8%
I thought 5 years ago would mean the current year would be year 6 so used n=5

I thought this might be one of the few things I might have got right. What a tough paper! Will be doing it all again in June :o(

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@studyfreaksy said:
Yeh I think with money market hedge the cost was 1907 something. And with the forward rate for shillings I thinku had to use interest rate parity. I used the deposit rates for shilling and dollar and Exponented the fraction on 0.25 power for 3 months. I got 14.11 as fwd rate. Anyone else got these answers?
Any one knows what rates to use for interest rate parity? Deposit or borrow?

Not sure if this was the same question but did you have rates quoted as v2 – v3? This threw me as I’ve not seen them quoted like this before.

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