[kashafhamid]

What was the answer to:
– financial and strategic value?
– financing ways and gearing level?
– currency risk policy and benefit of communicating to stakeholders?
-Q3 A) npv question of one year delay, how you all calculated?
B) expected value npv?
C) alternative npv of project?

Kindly all tell what they wrote to this

[kashafhamid]

Q1 A. In Behavioral factors part, I first mentioned what behavioral factors are and then I wrote about winners curse, over optimistic about the synergies, management bias
B. Value based on PE. I first took out martravers tech PAT and multiplied with similar sector PE ratio to get value then deducted with the cashflows provided.
C. I just checked with the past papers and I have not calculated the weighted avg asset betas right and my wacc came out to be 8%. Hoping I’d only lose 2 marks in this.
D. Additional value I got by calculating combined value using free cashflows to firm then deducting debt to get free cashflows to equity. Then I deducted market value of equity of individual companies. I forgot to take the premium. But my value also came out to be in negative as most of you all.
Was anybody’s answer different to this?

[kashafhamid]

What was the answer to strategic and financial value?

[kashafhamid]

I calculated basis using spot rate – opening future rate then adjusted with /6 months x 1 month adjusted =it was – 0.86 something
Then Lock in rate as opening future – remaining basis.

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