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nice place to relieve tension just moments before results.
Good luck all users behind their desktops, mobiles screens, whoever wherever !! 😀
q3 b was on transfer pricing… why method suggested by Production Director and Finance director was not suitable for Icordia… (Contribution 40% or Full Cost)
i think main reason here is it will demotivate the divisional head / management and they would not agree to a transfer price where they make a loss…
Why cant I get for ONCE some NIce question on NPV/APV or Hedging or Black Scholes or Gearing and Ungearing Beta’s for a Q1! Why always a question like Iv never seen in any past paper before!!! WHY WHY ?!!!!!!!!!! >.<
I have never understood the ‘Free cash flow’ method to value a company..
FCF = MV of Co ?
FCE = MV of Equity ?Always hated this topic business valuations, partly because there is no lecture OR revision lecture on this topic, nothing, just notes & also because i just feel it doesnt fit right into P4, its more accounting than financial management… and just that had to come in Q1 !!!!!!
I knew in the exam the technique, like i knew we had to first get the FCF for Darma then calulate the MV of Debt from the redeemable bonds & subtract > then we get the MV of Equity > therefore the current Share price, but I just went blank! I am tired of this paper, should have passed it 3 sittings back when i got 49!
My 5th attempt at this paper, I dont know what to do anymore?!!
Also for q4 Last Mckinsey, i think they themselves stated which 4s out of 7s the Institutional Investor wanted analysed.. there is no point for all 7’s, anyways there was never time for that.
I did not waste time once i got Roce wrong, i knew something wasn’t right, no point in going back and doing all over again, just move on!
for the impressions though:
it was 9500 impressions in 1 mould
1 mould was 750,000$
in 100 Impressions there were 6 rejectionstotal units demand was 100,000
& Contribution was 40%so;
9500/100 = 95 x 6 = 570 total rejections in 1 mould
Total rejections = 570 x 100,000 = 57 million in 100,000 mouldsrevenue / impression = 750,000 x 100,000 / 9500 x 750,000
= 75,000,000,000 / 7,125,000,000 = 10.5
Now revenue/impression x no.of total rejections = Lost Contr.
= 10.5 x 57 million = 600 Million
In millions:
Profit = 100,000 x 750,000 = 75,000
Contr 40% = 30,000
Lost Contr = (600)
Manufact costs (1.9)
Some additional costs i forgot (….)
Profit….This^ profit figure / Cap. employed (i think was 10,000 million)
= ROCE…which i still got wrong, some calculations error, but that is what i can remember..
Ofc i went to next theory part ASAP, there was no point hanging in there trying to correct figures.. would have wasted even more time then…Too much to read & too much to write with limited time, simply impossible to finish!
Agreed. It was very hard paper. Of all ACCA paper I sat, this was hardest, and of all P4 attempts again this was hardest.
The first look at the question demotivated me but I left that for later, went on to q2 and found a whole theory paper in P4, full theory and last two bits of that were out of nowhere?!
Next go to q3, it looked simple at first, but when you get to it, there were many uncertainties, many things left to assumption, tricky.
Finally Q4. APV calculation, something that was still doable. And all that in the time frame given by ACCA, very challenging!!
The only question paper that comes close is this sitting of P4’s is Nahara Co. Question from Dec 2014 and Cigno Co. Question from Dec 2015 Hybrid
Me too.. Base case Npv was (-) and APV was also (-)
About Chairman mssg for Year 2 profits = 0 ? what method you used? Sensitivity, IRR ?
still don’t know if the paper was in English or German?
very tricky. Q1 was different than any Q1 before from past papers. Q3 was again very tricky, looked simple, but it wasn’t. too many uncertainties, and Q2 all theory question in P4 exam?! and Q4 was only question that looked ok. It was still not that easy, some tricky bits, but atleast was doable.. hard paper this time