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56%, 2nd attempt. It was a tough exam. I’m glad I passed.
Professional level on the way!@acca145 said:
I choose investment and share price maxi!There were no share price maximization. There were “maximization of shareholders wealth”. Anyway, what about non-for-profit organization.
I saw here on OT similar question where shareholders wealth was important but you can’t say it is the only objective.I got another variant.
1.
6.5 * (1 + 4%) ^ 7 = 8.55
8.55 * 110 = 941
It is better to redeem @ nominal value.2.
6.5 * (1 + 6^) ^ 7 = 9.77
9.77 * 110 = 1075
It is better to convertSo.
MV1: 70 * 5.971 (8 years @ 7%) + 1000 * 0.582 = 1000
MV2: 70 * 5.206 (7 years @ 8 %) + 1075 * 0.583 = 991@mustii said:
with conversion, of the 4% growth and 6% growth, I remember the question asking what the market value is on each now?, it didn’t ask what they should take? the market value would then be the npv of each? which are both under 1000?Yes, the question was about MV. But with 4% you do not convert and with 6% you do. And when you do convert, the PV is 70*DF + sum of convertion * DF.
@vipulv said:
How did you inflate your sales? Price x inflation to power 2 , 3 , 4 ?Exactly.
This exam was completely non-typical and yet very interesting. NPV and WACC was easy.
Hedging interest expenses was about forward exchange contract and money market hedge. Convertible bonds: 4% growth is below $1000, so no convertion, 6% is above $1000, so convertion is likely. Working capital: I calculated working capital in $ and then calculated %% (1M overdraft, the rest is LT debt).
@pauljaco said:
So getting 47% in my first attempt who is in for MArch?Any tips?
How did you get that figure?
@non47 said:
Unless I’m totally confused and would be very fool after 2 sits….NOT a going concern: Means that the company is able to continue its operations in the foreseable future.
Going concern: Means that the company isn’t able to continue.
Isn’t it?
Going concern is a term for a company that has the resources needed in order to continue to operate indefinitely. If a company is not a going concern, it means the company has gone bankrupt.
Actually I made the same mistake. Justified that the situation is very bad but not fatal..
@acaqub said:
Did you miss the Q6?No, of course not. Did all the questions.
@kateacca said:
hi, please write what you replied to this. my reply was if fraud or money laundering was discovered (because of word DIRECTLY) and i also said that its the management’s job to ensure compliance. auditor should obtain sufficient evidence for possible noncomplianceRelevant technical article.
https://www.accaglobal.com/gb/en/student/exam-support-resources/fundamentals-exams-study-resources/f8/technical-articles/laws-and-regulations.html“It is the responsibility of management to ensure that an entity complies with relevant laws and regulations. It is not the responsibility of the auditor to either prevent or detect non-compliance”.
“The auditor’s responsibility to consider those laws and regulations that have both a direct and an indirect effect on the determination of material amounts and disclosures in the financial statements”
@fishgo said:
https://www.accaglobal.com/content/dam/acca/global/PDF-students/acca/f8/exampapers/uk/D15_Hybrid_F8_QP.pdfThese questions scared me to death! I thought I missed the question!!! Then I realised that it was a hybrid of September and December exams.
@acaqub said:
Assume that opening inventory is zero then you purchased £4 stock and used half of it. 50% discount means purchase is £2.Without discount—-£4-£2=£2
With discount—£2-£1=£1Gross profit margin= Gross profit/Sales(Fixed, assume 6)
2/6>1/6
So the answer is B…
What are you doing?? Gross profit = Sales – Cost of goods.
So in your example
WITHOUT DISCOUNT [1]: Gross profit = 6 – 2 = 4
WITH DISCOUNT [2]: Gross profit = 6 – 1 = 5Hence gross profit margin:
[1]: 4 / 6 = 67%
[2]: 5 / 6 = 83%You divided COS / Sales!
@sarahblundell1985 said:
i thought it cant be purchase discount because this would lower purchases increasing profit?i did wonder about sales mix but it doesnt state wether sales would be higher or lower unless im missing something?!
so i went with closing inventory overstated
Rather strange question.
If closing inventory were overstated then disposal had been at lower cost, otherwise closing balance would have been lower (not if we assume that additions were overstated, then disposals would have been more expensive). If we have discounts from our suppliers, then again we have lower cost of disposals.
As I remember the question was specificly about decrease in growth margin. So the only option left is sales mix – more products or services with lower margin were sold.
Passed F5 and F6 at the 2nd attempt (71% and 70% respectively). Really happy. Used ATC materials and thanks to professor Moffat, his lecturres really helped me.
Might be. Depends on examinators mood. In general it is not very good. The examinator may decide not to check the whole answer.
Ruby, this option is for papers which involve choice. In F5 you must attempt all questions.
2evilozfon: not any. it is precisely 1000 small panels. Anyway your calculations are right. I did exactly the same.
>>>@ umerazizch – yeah, the optimum plan was 1800 large panels, 300 small panels. Max profit was about 3.something million (cant remember exactly).
Can’t be! Minimum 1000 small panels have to be produced each year.
<cite> @helloitsroshan said:</cite>
You dont have to multiply it by 3 since all the numbers are for per annumper annum means yearly, every year. As the product’s lifecycle is 3 years you have to multiply all numbers by 3.
No, we were not.
a) considering the views of the board of governors… recalculate the surplus/deficit (no incremental budgeting is mentioned).
b) discuss
c) outline
d) discussI think no inflation rate should be added in ZBB variant. It doesn’t make any scence! Because the principle of ZBB is to review all the costs you have and put the final number in the budget! It’s like: “all right, in the following year we have to do that and that, and we expect it will cost us X”. Why would you add any inflation to that?
