[davea]

Does anyone remember the mark allocation for Q1 of variant without EVA?

[davea]

50! Yeah!!!!

[davea]

@heychi said:
I deducted as well and got the same growth of 1.04 with the formula..so yes, g= 4.

I also chose Aggressive for financing but i’m not sure too!

I can’t remember what I chose for the irredeemable question but I think I went for only statement 1 is correct as well. I just googled it and got the general sense it is equity. Fount this also on Kaplan’s knowledge base:

“Redeemable preference shares are preference shares which are repayable by the company at a specified future date. On this date the shares are cancelled and the shareholders repaid.
These shares have the characteristics of debt. They are therefore classified as a liability on the statement of financial position.”

“Irredeemable preference shares are preference shares which are not redeemable. They remain in existence indefinitely.
These shares are classified as equity on the statement of financial position.”

Hopefully we are correct.

Growth of divi is was 5% as 20X7 to 20X3 as i remember (0.45/0.37)^1/4 – 1=.0.05 It seems that you used power of 1/5 instead of 1/4. Check.

[davea]

@syeduzairnaqvi said:
I think terminal value was 5% of the initial investment if I remember correctly… So we should take 5% of 25mn at the end of 4th year

Yes, I did the same.

[davea]

MCQ 1-got A.
MCQ with exchange rate forecast got option $/EUR1.2654.
MCQ with 2 statements, selected none of them right.
Question about factoring debt got 90k reduction of profit (A?).

Q31. I excluded bank loan from calculation of wacc and added a note that can be ignored as the balance of bank loan represented only 1.6% of capital, impact should not be significant. I think alternatively can make assumption and use Kd for similar type of finance. Just because question stated variable %, did not want to make that assumption.

In calculating div growth used (cum div-ex div), not 20X6 (not sure), growth was 5%.
Got wacc 11 and smth %.
Kd for loan notes was 5 and smth % through IRR.

Q32. NPV was 10-11m. Inflated sales and var costs accordingly and used after tax nominal DF@12%.

Payback ~2yrs 9m.

[davea]

Weird questions in part B as compared to Sep session,
Part A was ok, though too much questions requiring hard calculations (e.g. advanced variances)
Part B:
Q1-Adavnce variances (ok)
Q2-Decision making (so-so)
Q3-Budgeting (discussion)
Q4-Divisional performance measurement (ok)
Q5-Make or Buy decision with limiting factors (run out of time, odd question)

In September in part B it was:
Target costing, CVP analysis, Performance measurement, Minimax regret, NFPO, Advanced Variances.

More common and easier questions were in September.
Don’t know how do they think it is possible to write in 3h 15m.
Not fair.

[Author]

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