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Somehow passed with 67%, despite not finishing the paper and being convinced I’d failed!
Well done to everyone else!Damn it, sounds like I should have done question 2 rather than 4.
Question 1 could have been 3 hours on its own!
I found myself bringing my own personal knowledge about the Mobile network operator market rather than wholly from the scenario for the 5 forces. Which is clearly unfair, but I felt I had to because I had used a lot of the information provided in the PESTEL as people have already stated.
Avishhi5 – I reckon Porter’s Diamond would be useful yes, I was going to use it myself but opted for 5 Forces in the end and didn’t see the point in doing another given the time pressure!
Ok thanks Salmiak.
20 marks seemed an awful lot given the requirement, I wonder how much they expected us to write.
Lunip – on one of the 4 possibilities I too only had a 20m loss. But I think I messed up that entire part.
Salmiak – What calculations did you do for 4 part a?
I only did Gross and Net profit margins ????
hbilal – I agree, I found it bizarre how there was a 20 mark questions on basically organic growth or acquisition but there were no accounts to refer to???
I even mentioned this in my script, probabilities are a load of rubbish!
Yes I used PESTEL, 5 forces and then used Strengths and Weaknesses to identify the Opportunities and Threats as required in the question.
I forgot to talk about Suitability, Feasibility and Acceptability for the q1 last part, even without calcs I imagine I could have picked up a lot of marks just by applying the two options to those criterion.
But yes, so much data to take in, think about, plan, write, evaluate, refer to theory etc.
I’m hoping the ACCA will moderate the results accordingly if most people struggled to finish the paper 100%.
Or is that just wishful thinking?
I found it far too time pressured, I didn’t manage my time well enough and spent far too much time on question 1.
I also made a mess of the last part of 1. In question 4 I literally did basic bullet points to parts b and c due to having no time.
Hoping for a miracle to get 50%!
Correct me if I’m wrong but I don’t believe you incorporate interest into an NPV appraisal. Since the cost of capital (discount rate) already incorporates this.
Darex – you subtract the scrap value and then depreciate straight line.
I.e. 5m minus 500k, depreciate 4.5m over 4 years equalling a depreciation of 1125 each year.
The tax savings are therefore 338 each year, with the remaining balance on your capital allowance workings being 500k, the resell value when you depart ownership of that asset.
Kadir – Ah makes sense now, though I don’t think I’d want to do that, I’ll just wait and pray on the 1st August!
Yes I think they should only be worth 1 mark each as well, 0 or 2 is a bit harsh.
What I want to know is how these people remember exactly which option they chose for each MCQ to repost their answers in here!
No because the after tax discount rate given was stated it was the nominal value (I.e. money terms) and was already inflated.
We had to inflate the selling price of 29 by 4% each year and also the incremental fixed costs by the other perecentage (5% or 6%).
I imagine the main errors made on this question was:
– Inflating the variable costs, we didn’t have to since they were already nominal monetary value.
– Doing the tax in arrears, the question they pay tax in the year the liability arises.
– Doing a balancing allowance for CA, as it was straight line there was no Balancing Allowance.Apart from a few before and after ratios and calculating the TERP is all I did. I got proper lost.
Did you get TERP as 3.37?Question 4 was difficult and one of the very few areas I didn’t practise in massive detail, in part b I got carried away and started doing some random WACC calculations for both before and after the rights issue, spending ages only to realise it said “Discuss”.
So I started speaking about how WACC has increased because there is a greater proportion of equity making up the capital structure, but also that redeeming some of the debt has decreased financial risk.
Finally I spoke about traditional view, M&M and M&M with tax.
On MCQ 1, statements 1 and 3 were definitely wrong as they were mixing up monetary and fiscal policy. Statement 2 was the only correct one.
Has anyone else got P3 on Monday?
Cheers Jenny.
I think the IRR MCQ one I figured out in my workings to be 18% so I went with the option 17.8%, but I know there was also a 17.2% option so not sure :s
I agree with most of the other numerical MCQs, I got 48k with Baumol, but that’s because I used 5% instead of the net 4% so I presume the 57k answer is right.
Q20 was 2.10, the WACC was 8.8%, the exchange q (no gain or loss) was 1.418, 6% percentage growth correction option on one of the first numerical MCQs (option D). 96.94 for the value of the loan note, ROE was the incorrect option on one of the questions (used PBIT instead of Profit after tax and preference share dividends).NPV in Q5 I got 3,807. Q3, net cost of using factor or around 200-300k but I think I did this wrong. Q2 I was calculating the total values in a and b rather than per share, do you think I will be penalised?
Good luck to all of you! Praying for that 50% mark!
Am I the only person who got the Money market hedge to be better in question 1, since they’d receive more in dollars with it?
As they were receiving, the borrowing in Euros would be on the RHS of the money market horseshoe workings.
I may have just messed up the Forward workings and accidentally used the Spot rate or something.
Can anyone remember the figures in Q1?