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how about the loan that was repayable only if certain conditions in development were met? what was that about??
JMcDaid96 wrote:I had that. Had no idea how to relate Intangibles to the question.
I used R&D costs
tomdavey wrote:Tough exam I thought, QH case.
I used PESTEL as the question was about external environment
Got QH case study as well. I was surprised that they asked for strategy/process matrix, as I thought we will never be asked for a specific model?? I thought it was weird exam with many key areas of this exam missing.
If I remember correctly, residual value of 10 m was received so it should have been added in Year 4. Residual value of 0 was for Tax allowable depreciation, because only 40m and not the whole cost was available for TAD.
I think I’ve adjusted for inflation 2.2m and add it as in year 4.
I did include the disposal. But still got negative flows in all years. Just that contribution from revenue was so small and additional fixed costs were quite large.
Maybe I misinterpreted the part about them having 1% of market share. And the revenues (3,765m – or similar) were about the whole market…Question 1 – APV calculation, including determining a cost of capital. A lot of adjustments, but after reading that they got 1% of market share – my cashflows were all negative??
Question 2 – selling off a division that has been experiencing trouble and focusing on the core business – ran out of time
Question 3 – interest rate collars and swaps – as I practised a lot of these, I knew everything about it. without too much thinking, it took me 1.5 hours to do all calculations and to make comments!
I felt that this was very time pressured exam.