[kilmovee]

Ireland is the first to do CBE for professional exams that is what the guys told me today so it bit like unfair that couldn’t be right you’d think

It only 7 marks for the gamma delta

Ya that is what I did but 1.65 is technically wrong as per tables it is 1.645 I think I’ll let them know lols

The sales percentage was that sales then discount then divide by npv

[kilmovee]

VAR .035 * 2 by 1.645
Or am I missing something

Agree @rommark 7 what a horrible question for 7 marks like seriously

Then the 2 marks for cash flow wow

[kilmovee]

I wouldn’t imagine too many as part b and c covered the options and rejected it when it could be positive but that what b and c about

[kilmovee]

Exam was not in anyway difficult however what is the story with the amount of reading I had to do question 3 without reading it basically. I could do almost everything on the paper but still hadn’t time to complete. If I fail it most certainly is not lack of knowledge and I think that is unfair are we accountants not typist basically
In summary
1) went with money hedge, and fra.
2) netting straight forward
Theory ok, profit Centre just blah blah

2) Npv with sensitivity
Positive npv 1.43
10% investment
4.3% sales ( or other thing he called it) discounted sales revenue
Reject npv
Weakness as should factor in real options as they add value to npv
Could reject npv that is profitable
Part c basically repeat of b

3) cash 8m
Sofp wouldn’t balance so just messed with it and stupidly reserves as a balancing figure no sense
Debt covenant not met year 1 41% 2 36% however I guessed profits would increase 21 and 22 so no marks for that but did do the debt as annuity so finance 3.18 or 2.97
As no time to think about this
God help the examiner reading the answer to the last part couldn’t even read it myself

[kilmovee]

This paper was not difficult apart from not enough time to read the story to apply answers very disappointed. Q1 I thought there has to be something bigger here seemed too simply.

What project to anyone go for

Dividend capacity any numbers

[kilmovee]

I got positive of 8,000

[kilmovee]

One last question anyone remember their Npv

[kilmovee]

Was that assuming a .15 gain

[kilmovee]

The options really cost me time as I thought my first answer was wrong using the futures price and started messing etc with contracts etc oh I’m so annoyed

[kilmovee]

Anybody remember that effective interest they got for the hedge

[kilmovee]

It was ok. I lost my thought for question 2

[kilmovee]

Tears of joy ?

[kilmovee]

Oh the wait.

[kilmovee]

Same as that.

Any insight Billy to question 1

[kilmovee]

18% discount rate cause concern
Operating expenses fall by 92%
Other income reversal of entries
Finance/interest
New client therefore understanding entity
Fourth division
Share capital not evident 100m expenditure
12 m uplift

Ethical issues in part d anyone

[kilmovee]

Actually so annoyed after that exam. Absolutely ridiculous the amount of information in question 1. Totally unfair paper. Questions were not difficult but time and to actually read the information nearly took 45mins. I’ve got 3 p’s first attempt actually feel like lodging a complaint about this. expectations of students was not achievable. Also inconsistency was it a first engagement ? Information not clear.

[kilmovee]

What answers you get for q3

[kilmovee]

The pension I think is incorrect

[kilmovee]

Pg 344 section 3.4.4 bpp manual states the liability must be included

[kilmovee]

I would like to refer you to pg 366 section 3.4.4 the contingent liability according to the bpp manual should be included. Therefore 16 is the correct answer.

[kilmovee]

Q 3 anyone know what answers they got. also q1 any one get 11 for the Pension liab

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