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I missed that 4marks too. Google it and you will understand it could be just english language problem. (It is purely language problem to me)
sunginae1 wrote:hey guys, what is the fiscal risk in Q1 by the way, why I never heard of it in the opentuition lecture? T.T
Use the one year forward, 3 month forward already expired before transaction date.
dreniba wrote:Yeah we definitely had to use money markets which I am so annoyed about because that was an easy question. For whatever reason, the forward rates confused me. Receipt was due in 4 months yet quotes for forwards were only for three months and one year. So wasnt sure how to do that. I
I used the one year forward, which is not expired. Also the hedge is only for US$ not for €. Netting off the $, hedge the balance of $, market hedge gives better deal.
Anonymous wrote:Q1 value the equity in company being unbundled using net assets, PE, FCFF and div valuation model I think 24 marks for those split into 3 8markers. Then 11 marks for discussion on the unbundling I think and 7 marks on theory and then 4 final marks for another theory topic?
You need to include investment in year 0 in your cash flow, the base npv is negative. Financial impact PV is small amount, so APV is still negative.
pranav96 wrote:how was apv negative.. did you do calc. for tax side effects?
I had same problem. I was so confused about the hedge question because it asked to recommend the BEST method to hedge, well, only forward and market, i thought “compare forward, market, future and option” but ……
okmike wrote:The question was really quite confusing. The hedging of the reciepts and payments. only forward rates and then info on swaps, got me confused as i was expecting more detailed hedging question, I had to scan again repeatedly to make sure there was no futures or options to work on. Or may be i missed it. for the swaps I think i got it. fairly easily confusing i would say
No cash or share in my Q1 at all.
umairzahoor wrote:in Q1 Where is mentioned share for share exchange or cash offer or synenergy ? is is all about PE, NET ASSE, PE AND FCF, SO where is the share offer or cash offer?
The first question i did was the hedge question~ The question is very confusing, dont really understand what the question asked (because dont understand “5marks” calculation could be too tiny compared to question 1 (8 marks per valuation) ~ question APV is fairly past paper format, question 1 is “surprised” which could be cut into 10 marks questions i. Section b because I was expecting Massive NPV calculation and exchange rate and imports and due taxation etc. very nice part 1 asking why L strated as unrelated the decided to unbundling, I almost copied the whole section of the background information. But lost 4 marks for fiscal problem which is also very easy marks. ~ all calculations element in todays paper were confusing.
I failed so many times of APM, also someone I know still failed APM, I spent a year to pass APM, someone spent over 1 year to pass FM. So do not give up, you will pass your exam.
Held for sale, I think most of the the conditions are met, I did originally define it as held for sale, however there is no information about the sales price which is reasonable to fair value in the market, without the sales price, how to locate a buyer?
I had same with 15%left, changed from consolidated accounting to IFRS 9. From control obtained to control lost, remove goodwill and NCI from accounts and treat 15% by applying IFRS 9.
NCI is given in the question, use the retained earnings to adjust NCI for disposal calculation.
I prefer paper too, I kept mis typing and correcting my wording. Sometimes I lost in the middle and difficult to trace back to change my wording.
I think me and you had same paper, I did not see cash flow question at all. No revenue neither.
I had that one in question, revalued with 12month measurement period, it should have been adjusted to accounts and depreciated over remaining useful life. I also mentioned that “lack of information for the remaining life, I would use 20years as previously and adjusted back to accounts)
