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My q gave 7$ current share price, 1 for 4 rights issue and rights valuation of 0.4 $ per existing share.
IRR was on the q for 11% and 20%.
I also remember a q for TERP, I got 6.60 for TERP and 5 for rights issue share price.
I also got 19% on the IRR q. Anyone else?
But is relevant. As they maintained high level of inventory and if the business nature does not require it, it is a very good comment.
There was something in the question that 80%of the credit purchases were spent of materials. That is why I used that figure. But not sure that this was correct at all.
First time sitting CBE exam and did not like it more. But first time that I finished 45 mins earlier. Section A and Section B were quite difficult for me with many questions on fx hedging, FRAs, futures etc. Section B had more questions than usual. Section C, on the other hand was straightforward. First q was on calculating IRR with 11% and 20%. Second q, was on WC management with calculating many ratios and comment on their investment and financing policy. They were too conservative, in my opinion. The only difficult was with Cost of sales and credit sales, which were given separately. I calculated 80% of credit sales and used that figure to calculate the ratios for the inventory. Anybody did the same?
Pass with 65%, first attempt with a month self study preparation. Thank you, opentuition!!!
I remember a question for a parent considering to acquire a subsidiary and we had to choose which information would not be relevant for them. I chose: key employees and directors.
For the impairment, I do not remember what I picked up, but for sure was not the one saying impairment review every year.
It will be same here from June, I think. Did you find cbe to be harder than paper based one? For example, on mcq part, do you really have a choice or you have to fill out the answer by yourself?
I have the feeling CBEs will be harder.I sat paper based exam.
About q32. I had a PL result to be adjusted from a TB and second part to prepare SFP. I didn’t have enough time. I added back the omitted closing inventory, adjusted result with the finance cost as the loan should have been split between liability and equity component and calculate intrest on % similar without reedemtion rights. There was adjustment for ppe with impairment, bonus issue, for which I used the share premiuim and the rest in the p&l. The same was fir impairment of ppe-partially offset againt revaluation reserve and the rest in the p&l.
Part 2 was statement for changes in equity. Apart from I already said, I deducted the dividends paid.
I calculated GW as well and calculated PL result for Swanson up to sept 20×7 and added to initial consideration. My gain wad about 2m.
@beloslava said:
what does matter how geared Swanson was… we were comparing the parents individual P/Ls, right?Yes, that’s right. Just my interest cover ratio went up dramatically. And swanson finance cost was about 900 where parent’s only about 60, so I mentioned that as well.
Another MCQ: A quick ratio that was much lower than the sector average: I chose something with the receivables allowance
I can recall an MCQ with revaluation of property and how should it be apportioned: I chose Cr GW 70,000, Dr PPE 56, Dr RE 8.4, Dr NCI 5.6, I hope that were the figures.
How did you comment the gain on disposal 9,440 included in the operating expenses? Did you get the same result for the gain of disposal in Q31, a)? It was not mentioned when the subsidiary was acquired, right? It was pretty strange question for me. How did you comment renting out the vacated property by the subsidiary? Thank you.
I seems that the exam were kind of mixture. I am looking at your comments, I had Tice Brand and impairment on the paper based exam too, also the ratio to comment (question 31 – gross profit, operation profit margin and interest cover for 9 marks), but no exchange, no ROE. I calculated the interest cover of Perkins in 20X7, like many times above in 20×6 and my comments were that it seems they paid off some substantial interest-bearing debt or Swanson was more geared company. Some like that by anybody else?
Are you talking about F7? Did we really had dinars to deal with? I really cannot remember that or I have missed. For sure, there were not any foreign currency exchange rates given on F7, so I guess either you are talking about another exam or we have different versions in different locations? Does anybody else have foreign currency on F7?
Thank you! I watched all your lectures for all exams I have passed so far (with very good results, thanks to you and your wonderful site). I was a little confused because in the lectures we compared current ROI with the ROI of the new project, but now I fully understood the question. The project of division Y gave me negative RI, so the situation is clear, ROI is irrelevant. Thank you again! Have a nice day!
Thank you very much for the quick response. But I still cannot understand how to decide which division would choose to invest in the project. I know I can calculate the residual income for both of the projects, but how to decide on that basis (RI basis) when I do not have anything to compare with. Or I just have to compare both residual incomes and to choose the better one on that basis and current ROI is given to make me confused? I know the current ROI, but not the current residual income.
I hope I made my question clearer.
