[jshields]

Didn’t pass, dissapointed but not unexpected. I can’t seem to do the past papers in the time given so when i finished in the given time i knew i’d done something wrong.

[jshields]

@kermillia said:
The paper over was ok for me.

First question I attempted was the NPV…. Careful inflating my cash flows. I had to go with my gut on whether of not to inflated in interest on the loan… And I did because It is a fixed cost. Got and NPV of 2 millions or something!

Cash budget was good

Agree, I thought this was easy marks!

Fx was a little tricky…. Had to read over the requirements like 5 times! I compared the spot rate of the receipt and then the forward which resulted in a net LOSS…

Agree net loss.

the WACC was a little time consuming for me…. Mainly on the Cost of debt part… Overall I believe I got 11% (maybe from my rounding.) can any one tell me if the wacc under both method got extremely different WACC…?

Also the discussion on the invest in shares when there is a cash surplus… I said yes and discussed why! Idk if that’s correct…

I said no as it was short term and stocks can be high risk, better looking at treasury bonds or reducing debt if the cost was higher than current available investments.

Over the paper is ok! Idk how to feel but I believe I’ll pass…. Share your thoughts guys.

[jshields]

I seem to be bucking the trend, I sat the exam with no real expectation of passing as i was concentrating on F7 and P1 and just sat it for the experience, hoping to get lucky, well I think I did!
The MCQ’s seemed surprisingly easy and I would be surprised if i got less than 30 marks on that section (shame we won’t know which section we did best on.)
Then I only did questions 1, 2, 3 and the discussion parts only of 4 and 5 as I ran out of time after realizing I had made a stupid mistake in 2b by discussing using dividend growth to calculate share price rather than price/earnings ratio, by the time I had gone back and done it again I didn’t have much time left.
NB: I deal with foreign exchange regularly and have a SIPP .
How lucky can you get, Just goes to show you should sit exams even if you expect to fail

PS. Q2. Foreign country s interest rate was 4%

[jshields]

@riskyguy said:
I think to obtain the figure of profit to date, you did not subtract the estimated cost to complete along with the cost incurred to date from total profit, and then multiplied the answer by the percentage of completion.

I got nil because it asked what the customer owed and he had paid costs to date!

[jshields]

Hi,
Before revaluation
Asset account 800,000
Depreciation account 560,000
(Item revalued to additional 600,00)

After revaluation
Asset Account 840,000 (800,000-560,000+600,000)
Depreciation account 560,000

Hence 40,000 needs to be debited to asset account.

[jshields]

I seem to have a different answer to everyone else on the money market or forward hedge.
I came upo with the forward option being better as if you borrowed sufficint funds to have €500000 in three months time at an interest rate of 9% on the euro account you could only convert 500000/((9%/12months)x3months) = € 488,997.55 at the current rate the interest due over the three months would take the debt upto the €500000 to be recieved. Then even if you take into account that you would get 4% on that € 488,997.55 you were still better off taking the forward rate.

[jshields]

I don’t think it was too bad but then again I did not finish the paper, my time management is awful.
My biggest gripe however, is that the hall we did the exam in was freezeing, I spend half the time rubbing my hands together.

[jshields]

Well I seem to have done something wrong on Q4 as lots of people seem to think that Bulk purchase was a viable option, I calculated that though it was better than the prompt payment discount it was still worse than there current method so they shouldn’t take either option.

[jshields]

Got 35, which is what I expected.

[jshields]

I didn’t study the BPP text’s so may have been at an advantage.
I didn’t find this exam too difficult but I think I may have had luck on my side as I have done my own self assessments for over 5 years and operate a flat rate scheme for my husbands business (at the rate given in the exam!) and looked into a partnership business for my husband when he and a mate thought about setting up business together, they ended up opting for a company so I have done their company tax returns. Then the open tuition revision lecture went through the motor vehicle possibilities and as there have been a lot of questions on vehicles I studied this bit more that some of the other sections as I knew very little about it but knew it was more likely than not to appear on an exam paper.
Also I like questions for 3-4 marks better than 10 mark questions as you have a better idea of what is being asked for and in this case the 10 – 15 mark questions were for calculating profits in which case you knew what they were looking for.
In my opinion this paper was designed to sort out the people who studied the whole text from those who only studied the main topics and reward them accordingly.
Surprisingly, I do expect to pass this paper despite having done very little revision for it.

[jshields]

Many of you may disagree but I thought that the examiner had put in probability calculations for easy marks and am surprised that a lot of people are complaining about it as everyone who has posted their results for the probabilities has got the same results.

I thought the ‘sunk costs’ was a red herring and ignored it it is relevant to F5 and not F7. We wanted to know the NPV of the project, F7, not if we should continue it now it has been started, F5. Of course If I am wrong I will hopefully only miss out on 1 mark.
Either way, I will be resitting in December as my mind went totally blank on question 2 which was really annoying as it was the last thing I looked at before going into the exam and with 0/25 for that question its highly unlikely I will have got a pass.

[jshields]

Q1 got the same 20% and 18% a lot of people had I recon I got 17marks on the first question.
Totally messed up Q2 but going of the comments I may have done better than I thought, I estimate only 3 marks on this one.
Q3 Loved this question but my NPV was $450,000 and everyone is quoting $2m+ (Did everyone forget the $2m spent on machinery at the start of the project?), I was estimating 20mark on this one.
Q4 Hmmm! I have no idea how I did but unfortunately I only estimate 4 – 10 marks on this one.
So I recon I have between 46 and 50% – See you all at Christmas!

[jshields]

I didn’t think that the paper was too bad but I went in only having watched the revision lectures and with my past knowledge of self assessment and having done 1 corporation tax return.
So I may be totally wrong but I question the guys that said there was no personal income tax calculations.
Q1 involved a partnership, aren’t partnerships just two personal income tax calculations together?

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