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In your qu3 did you get a negative NPV? I wasn’t sure on PE to put in bsop but used the investment cost of 1250…
I thought the written bits were tricky, like agency issues between head office and regional treasury office. Even the capital investment.
What did you put for the underlying value of real options for the project? I started saying about option to withdraw or abondon but wasn’t sure…
I feel more depressed now knowing I approached the swaps wrong, and got the money market calc wrong…time to prep for a resit
With options you didn’t need to convert the outcome at the end, just needed to do contract size x no of contracts and then add premium…oh well.
I remember with swaps maybe I got a good rate for borrowing, but then deposit rate wasn’t beneficial so I said not to enter into a swap for deposit (or vice versa can’t remember). But I had never done a question like that before so mot even sure if you’re allowed to swap for one and not the other…
My second question was on calculating value of equity using dividend model and FCF, no PBIT was given with FCF and when I calculated it, it was much lower then dividend model…surely they should have been similair??
I couldn’t answer IPO and reverse takeover as didn’t learn :(.
Third question was a simple NPV but then there was something about capital investment system…can’t really remember know but something I hadn’t come across before.
This was my last exam, would have been nice to think I did enough for a pass rather then feeling crap
Sanna question was
A) advs and disadv on futures vs forwards
B) hedging the payment using money markets, but were given swaps to identify the rates, futures and options. I messed up with options and noticed when there was 5mins left, went to correct but made it worse, report didn’t match my calcs…
C) Comment on results (can’t remember nunber of marks)
D) agency issues of local treasury and head office and how to mitigate. Thought this was a odd one so I kept it more generic so doubt i’ll score muchDid anyone get Sanna Co, 50 mark hedging question? There was money market but had to look at swap rates? I think I messed up as noticed in the last 5mins I converted my options incorrectly and when I went to divide by the strike to get the outcome, even after adding premium my option outcome resulted in lower payment compared to all the others…didn’t sound right!!
I didn’t use the exhibit to answer the tech development question but listed the following:
AI and the drawbacks being AI seen as creating unemployment
Digital marketing and drawbacks that it could alienate the 40% of the demographics who are mature and maybe not tech savvy.
SMART tech with apps to be able to keep client informed (not sure why I even wrote that)
I should have put blockchain technology but didn’t…I had ideas but nerves got to meI had the same questions, didn’t use any models. I sort of answered the qu1b on tcech development in a weird structure. Didn’t really follow the exhibit, think i forgot to even refer to it. Hoping I get some credit for making comments on digital marketing and AI etc…
Question on project management job description was fairly easy and even the internal control weaknesses in the credit control team.
I wish I wrote more but nerves got the best of me