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@lucygoose said:
No, you were right with put. Option to abandon.good 🙂 might have got 1 mark there 🙂
I got negative NPV but then the real option made it positive so I concluded to go with the project
am i correct saying, to calculate the value of the real option that could be sold, it was a put option? that’s the way I did it but thinking now that it should have been a call..
For the fcf valuation of new company in Q3 what was the discount rate? i used wacc for the company as the discount rate because i panicked with little time left. the valuation i got looked completely wrong but hopefully would not lose too many marks on that if the method used was correct?
i didn’t have enough time for the 10 marks at the end of Q1 either because of time constraints.
i think the questions were OK but had I issues with time management. spent almost 2 hours on Q1 so had to fly thro Q2 and Q3 in the last hour. did not attempt part b of Q2 (worth 7 marks I think), so hoping I got 50 out of the other 93 🙂
General rule of thumb is materiality to be set at 5% – 10% of profit before tax, or 1% – 2% of revenue. The above claim is not material.
Failed – 49% – very hard to accept it as I was sure I passed – getting the result reviewed seems like a waste of money – Will do it again in March with F8
I did not include inventory in calculating goodwill either. I just put the FV adjustment of 4,000 for the propertly revaluation. hope it was right !
i put the 200 of inventory as a gain on the p+l.. any one else do that?I got that too, hope we were right 🙂
I was very surprised calculating goodwill was worth 7 marks!