[Senya]

HI everyone.
Attempted Q4 and Q3.
In Q4 one EVA was positive ~7 and one negative ~(25). WACC was 11% (1/4*8%)+(3/4*12%). As far as I remember there was a post tax cost of debt of 8%.

In Q1 expected ROCE was 13.3.
Does anybody remember whether a calculation of current measures (rev and profit per metre) was required?

[Senya]

If I m not mistaken, the Q3:
a – chose hedging option (13 marks)
b – factors to consider when chosing a hedging strategy (5 marks)
c – should a separate treasury function be created (7)

[Senya]

Does anybody have any ideas regarding mark distribution in Q1-b(I,II,II), Q2-a and Q3-a? My main concerns are the proportion of text/calculation marks and required volume of text per 1 mark for explanations.

[Senya]

Hi, Guys

My answers below:

1 b (2)
2 d (2)
3 b (2)
4 c (2)
5 c (1)
6 b (2)
7 a (1)
8 d (2)
9 a (1)
10 b (2)
11 b (1)
12 b (2) – incorrect

What do you think?

Thanks

[Author]

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