[DreamerSK]

Thank you for the well written explanation. I understand my confusion now.

[DreamerSK]

I now see that the 500 pounds counts towards the basic rate band.

Thank you.

[DreamerSK]

66%. Thanks OT. I must have been lucky in MCQs.

[DreamerSK]

Some have said that both WACC and NPV were 11 marks….but then how many were the remaining questions? business risk vs financial risk, capital rationing, rights issue, profitability index, two types of risk. I think both Q31 and 32 were for 20 marks each.

[DreamerSK]

how many marks for the business and financial risk question?

[DreamerSK]

How many marks for each part of Q32?

The last part about different types of risk was 5 marks. How about the part about the others?

[DreamerSK]

i mentioned the 6 months on money market hedge on page 7. Have you guys read the other pages.

[DreamerSK]

@mira93 said:
what was the answer to money market instrumnt one? was it treasury bills? and also the fwrd rate . i got 1.62. any one els got this answr???

What were the other options? I remember reading something about short-term in the question so I didn’t know which to choose between commercial paper and the other “borrowing” answer. I think that was the question about funding a short term deficit that is expected in the future.

[DreamerSK]

@karinaq said:
does anybody remember this question from the MCQ, where you had to calculate the ROCe using average investment method. Monthly profit was $729000 and the total investment in the beginning of hte project was 1800000. I tried to do this: 729/(1800/2). But it didnt match with any of the given choices.

I think you had to say 1800 000/4 (Depreciation per year for 4 years) which gives 450 000 then say (729 000 – 450 000)/(1800 000/2)

[DreamerSK]

@mira93 said:
what was the answer to money market instrumnt one? was it treasury bills? and also the fwrd rate . i got 1.62. any one els got this answr???

Do you remember how you calculated the forward rate and do you remember the question for money market and other answers?

[DreamerSK]

@trishee said:
Rights issue 5 and capital rationing 4

Thanks. I am hoping for high marks in Q31 because I think i messed up 32.

I would have not included fixed costs because it was not an increase in fixed costs so the project just results in economies of scale. I didnt adjust for tax in arrears and tax savings to put the figures in correct years.

I added the NPV wrong.

It is so hard to judge g
how many marks i can get for 32.

[DreamerSK]

@monluka said:
But was the question not what was the value for receipt in dinars using the money marked hedge?

Think that was a different question. I didnt notice the interest rates were for 6 month already so you didnt have to divide by 2.

How about rights issue and capital rationing. Does anyone remember the marks?

[DreamerSK]

@mon do you remember how many marks for wacc?

[DreamerSK]

@gtavicecity said:
There was another mcq and I chose government interferes to change exchange rate. any ideas on this?

I know government uses monetary policy and changes interest rates but dont think it directly changes exchange rates so chose a different answer.

[DreamerSK]

@gtavicecity said:
what was the equity capitalisation in section B mcqs. 251.M something?
Also if interest rates are to go high in dinar and euro, we will not take out euro denominated loans would we?

Also agency problem means share holder wealth is not being maximized. Right?

If the same question…I thought we were paying euro so in money market hedge we would deposit euro and borrow dollars, so i thought we would not borrow euro.

For agency problem, I thought that Agency problem may not necessarily lead to shareholder wealth not being maximized….because there was another answer I preferred which I don’t remember.

[DreamerSK]

@tuyahan said:
hi all 32 question c: 2 way investment. I answered buy lease all right?

Can you elaborate more on the question? I still don’t remember it.

[DreamerSK]

It may or may not have asked…if a market is weak form efficient then…

[DreamerSK]

Damn…think.i guessed wrong then. How about the question with investors not making rational decisions and random price walk?

[DreamerSK]

@sokty said:
DremerSK, I mean, pls do not just write the answer ABC or D, as I don’t remember which letter belongs to which question. What I mean is let recall the question, and try to figure out what answer we have thought for them.

Sure…but I didnt only do that. I quoted many of my questions again on page 4 because they werent answered.

[DreamerSK]

@sokty said:
Anything MCQ or Objective test answer you all want to share? I really want to recall all of my answer if I have answered them correctly or not? I am so worried.

Anyway, the result will be released on Monday, 16th Jan 2017. Hopefully, we all pass.

Please read my questions on page 4.results released on monday?

[DreamerSK]

I think market capitalization could be higher if investors dont have information about future growth plans yet. So i guess the answer would still be pe recipricol.

[DreamerSK]

@trishee said:
Umm, no! Market capitalisation is the minimum, it’s what they can currently obtain from the market so any bid has to be above that!

I thought Net Assets/no of shareholders is the minimum.

[DreamerSK]

@sokty said:
Do u think market capitalization gives the maximum valuation of a company?
I don’t P/E ratio is reciprocal of Earning yield is correct answer.
so, I choose market capitalization gives the maximum valuation of a company.
Any idea, please.

It is the reciprocal but I dont remember the question.

[DreamerSK]

@sokty said:
TERP is
4 shares @ $10 = $40
1 share @ $10*(1-0.1) = $9
so 5 shares @ $49, I got TERP = $9.8

Oh yes. I remember now.

[DreamerSK]

Don’t more people usually respond here…what’s going on. Is it too early?

[Author]

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