[jaypee24]

@chris165 said:
True but to calculate the finance cost you need to know the number of receiveables days before and after.

Just because 75% of customers pay in 30 days doesn’t mean average receiveables days cannot remain at 51.

I get what you mean, but I think we were supposed to assume that the remainder 25% stays at 51 days, I don’t think there was anything to indicate anything different

[jaypee24]

@bohdan.yaremk said:
Dear All,

Unfortunatelly, I opened a booklet before it was allowed to do so just to see how it looks like. It was my first time I was taking acca so I was stressed and didn’t note that it was not permitted. Unfortunatelly very silly mistake, I know.

Probably some of you knows what the cosequence it might have on my final grade ?
How many points will they withdraw ?

I don’t mean to be rude /mean but even if it is your first ACCA paper, surely you should be familiar with how exams work?!

How are you doing F9 if this is your first exam? Did you get exemptions? If yes, you must have taken exams before in your life? You should know not to open papers beforehand.

You think everyone else around you were just sitting there for the sake of it and CHOSE not to open their paper, whilst only YOU sat there and read through the paper?

I’m sorry, but I don’t believe an ACCA student can be that naive, or is it just me?

Pretty sure you are just trolling

[jaypee24]

@alexanderrobert1989 said:
That’s what I did initially, but reserves have always been in the Debt Equity calculation so stuck with it? Even before the new debt of only 10m and taking book values the company had a much greater amount of Equity then Debt?

I think you are right to be honest, I should have stuck with my original answer

[jaypee24]

@evilozfon said:
I inflated them like this
lets suppose s.p is 3$ in current price terms
and inflation is 4.7% per year

Year 1) 3 x 1.047
Year 2) 3 x 1.094 (which is 4.7+4.7)

and so on for next years..

is it correct?
or i should’ve used (1×0.047)^n

No, that is 100% wrong.

Why would you do 4.7 +4.7?!

Year 1) 3 x 1.047
Year 2) 3 x 1.047^2
Year 3) 3 x 1.047^3

to the POWER of 2,3 and 4, not times by

[jaypee24]

@alexanderrobert1989 said:
Debt:Equity question trumped me?

Debt: Market Value of Debt
Equity: Reserves and Mv of ordinary shares

How could a company with such high levels of equity to debt, be showing 30% gearing levels>>?

Missing something here. How did people calculate the profit on the back of the 25% increase?

See I initially got 10% cos I included reserves, then thought it looks odd so took reserves out!

[jaypee24]

@misschile100 said:
I got 1something too can’t remember the exact figure

I got 1 something also

[jaypee24]

me too!, did you just comment on how it is in line with industry average and despite this, their interest cover is a lot lower? wasnt sure what else to add and ran out of time cos I skipped it initially

edit: talking about the gearing question @ 38.5%

[jaypee24]

I did the same, I got 11.4% and then 11.7% but was probably wrong, hoping to get follow through marks and working/method marks to save me! :\

[jaypee24]

for the last MCQ I added 17cents back to the share price, not sure why though! it was either C or D, I thought C would have been too easy for a 2 mark question so decided to be a bit creative! lol

[jaypee24]

leading was cheap for me also but I wasnt sure if we were supposed to add borrowing costs? because they mentioned being short of funds and payment was due in 6 months.. if we had to apply interest then it would have changed answer.

for MCQ I had:

B
A
B
A
C
A
for the first 6

and
D
A
D
A
D
for the last 5, thats all I remember

[jaypee24]

@addy007 said:
Money market hedge is acceptable.

Discount on receivable management isn’t feasible.

Npv Positive.

Effect on WACC increases.

Discount included an increase in credit sales of 20% which meant increase in profits, overall benefit was higher if discount option is taken

[Author]

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